iTunes Store Customer Spending Down 24 Percent Year Over Year (Report)
It would seem that Apple's purchase of Beats and attendant move into the streaming music service business was prescient.
Fortune, citing a report from Morgan Stanley analyst Katy Huberty, writes that Apple's per-user spending in its iTunes Store -- which sells and rents television shows, movies and books as well as music -- dropped 24 percent year over year.
The decline isn't new news -- Nielsen SoundScan reported in January that U.S. download sales had decreased 5.7 percent in 2013 -- but the dramatic effect that the download sales decline has had on customer interest within the iTunes Store certainly is.
Streaming music has yet to stem the tide of industry revenues' general decline, down worldwide by $600 million last year. That, in spite of a 51 percent increase in revenues from streaming.
As reported in January, 49 percent of music-directed investments -- totaling $838 million -- went to services that license music, services like Beats Music, Rdio and Spotify.
Apple, which posted Q2 2014 revenues of $36 billion to $38 billion, had a good year with iTunes in 2013, bringing in $16 billion, up 25 percent over the year previous.
This article first appeared on Billboard.com.