Where’s Apple?
That’s what big music label executives are wondering as a slew of newcomers set up all-you-can-eat digital music stores in anticipation of streaming riches.
Last week, Billboard reported that for the first time in the digital age — the Apple iTunes store opened up nearly 11 years ago — annual sales of digital downloads, both singles and albums, declined.
Music download sales is a business dominated by iTunes. The decline has got to be a concern for Apple Chief Executive Tim Cook.
According to Billboard’s unofficial numbers, track sales fell 5.7percent to 1.26 billion units. While that decline was expected, album sales unexpectedly fell, ending the year just 0.1 percent down at 117.6 million units.
Streaming music companies like Spotify, Pandora, Rdio and others have their fingerprints all over the decline.
Apple dipped its toe into the streaming business late last year, launching iTunes Radio, a competitor to Pandora, but it has yet to compete in the on-demand music space dominated by Spotify.
While iTunes Radio received a warm welcome on arrival, thanks to the availability of early releases, reviews since have been mixed.
“The question for us is does Apple jump in,” asked one music source. “At some point they will.”
It’s not expected to be soon, though. The Cupertino, Calif., company is yet to start talks about extending music licenses beyond iTunes Radio, another source noted.