Technology
iTunes Music Store Faces Decline as Streaming Dominates Market

The iTunes Music Store, once a dominant force in digital music sales, is witnessing a significant decline in user engagement and sales. As of 2024, data from Luminate reveals a drop in digital album purchases in Canada by 23 percent compared to the previous year. This decline reflects a broader trend, as streaming services such as Spotify have reshaped how music is consumed and valued.
Launched on April 29, 2003, the iTunes Music Store revolutionized the digital music landscape. It allowed users to purchase individual songs for 99 cents, providing a legal alternative to file-sharing platforms like Napster and Limewire. By 2014, over 35 billion songs had been sold, establishing iTunes as the leading digital music retailer with a global market share of approximately 70 percent.
The landscape began to shift dramatically with the introduction of streaming services. Spotify, which launched in 2008, quickly popularized the concept of accessing vast music libraries for free or through a subscription model. As a result, traditional digital downloads began to decline sharply. Reports indicate that as of this year, Canadians have purchased only 744,899 digital albums, a stark contrast to the over 1 million CDs and 1.1 million vinyl albums sold.
Compounding this issue is the growing disconnect between iTunes and younger generations. A demographic analysis reveals that approximately 81 percent of iTunes Music Store purchasers are over the age of 35. This group, which adopted iTunes two decades ago, remains loyal, but younger consumers increasingly prefer platforms like YouTube for music discovery and consumption.
In 2015, Apple attempted to adapt to the changing market by launching Apple Music, a subscription-based service that provides streaming access to a vast library. While this move has attracted millions of subscribers, it has also significantly impacted the revenue generated by the iTunes Music Store. Current estimates suggest that about 11.1 million Americans actively use the iTunes Store, a fraction compared to the number of Apple Music subscribers.
Despite these challenges, many users remain devoted to the iTunes Music Store. For some, the appeal lies in the ownership of music files, as opposed to streaming subscriptions. This sentiment is echoed by musicians who often prefer the revenue structure of digital downloads. Artists receive a larger share of income from iTunes sales compared to the minimal payouts from streaming services.
The future of the iTunes Music Store remains uncertain. Apple has not indicated any plans to discontinue the service, but as user engagement continues to decline, the question arises: how long can this digital marketplace sustain itself? As of now, there are still various use cases for the store, and its loyal customer base is not ready to let it fade away.
As the music industry evolves, the iTunes Music Store stands at a crossroads, caught between the nostalgia of ownership and the convenience of streaming. For many, the idea of losing access to a cherished music collection is simply unacceptable.
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