The biggest deal in the music industry this year, both in dollar figures and headlines, was when Apple acquired Beats Audio. No one expected much of a change to occur with Beats popular headphone lines so most questions focused on the future of the new streaming service Beats Music. It seems, according to The Wall Street Journal, that Apple will aim to build Beats Music into the iTunes platform. For a price, of course.
Reports indicate that download sales are way down so the company is logically looking at other methods of bringing in the bucks. Billboard reported earlier during October that Apple has been in meetings with major labels trying to negotiate lower royalty rates for streams so that it can offer Beats Music for a lower monthly price than its current $10 fee. Streaming seems to be the next thing, based on its growth rate compared to losses in physical album sales and downloads, but can it be the next big thing? Even if iTunes can convince more users to buy into a premium streaming service, the issue becomes how do the performers themselves profit if royalty rates continue to drop?
The Wall Street Journal reports that downloads at iTunes are down between 13 and 14 percent during 2014 from last year. That's a dramatic decrease from the 2.1 percent that the service dropped during 2013. Still, iTunes at a whole reported sales of $4.6 billion during the third quarter of 2014, which is up from $4.3 billion last year. Apple hasn't specified how those earnings are divided (music versus app downloads, for example) but clearly the service isn't folding anytime soon.
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