Is Apple iTunes About to Get a Major Makeover?

With music downloads on the decline as streaming models become more popular, Apple (NASDAQ: AAPL  ) announced this week that it would be considering big changes to its iTunes Store. This isn't the only indicator of weakness in Apple's music businesses either. Billboard has reported that iTunes Radio, Apple's own streaming service, has yet to become a success, with only 1-2% of listeners reportedly buying songs after listening to them on the service. iTunes Match, Apple's cloud service for allowing users to store their digital music libraries remotely and access them on any device for an annual fee, is now said to have only 1 million subscribers.

So where are the record iTunes billings coming from that Apple seems to continue to announce quarter by quarter? Evan notes that App Store sales are the real driver behind iTunes' growth, which he sees as far more meaningful for the company than its music sales. Evan dives into Apple's music business, discusses how meaningful iTunes Radio is for the company, and tells investors whether or not they should be worried if the service continues to struggle.

In this video from Friday's Tech Teardown, Motley Fool tech and telecom analyst Evan Niu talks with host Erin Kennedy about the future of Apple and its iTunes store. 

The biggest thing to come out of Silicon Valley in years
If you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now... for just a fraction of the price of AAPL stock. Click here to get the full story in this eye-opening new report.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2913164, ~/Articles/ArticleHandler.aspx, 8/20/2014 7:13:44 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement