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Apple`s iTunes Showing Disturbing Signs

Troubles in white paradise? A new survey shows that the online music store iTunes suffered sharp drops in sales during the first half of 2006. iTunes, is the primary source for Apple`s iPod users, and has been growing in popularity over the last few years. Since January 2006, the number of online transactions at the online store has declined 58 percent. Analysts say that it`s early to tell if this is a seasonal effect, or if the iTunes giant is starting to lose power. Currently, iTunes is the most popular online music store in the world, with over 1.5 million songs sold.

The portable audio market is changing all the time and new companies are joining in almost every month. Microsoft has recently released its Zune player, and market share is constantly shifting. Although Apple`s iPod is still leading the competition by far, more and more people are looking for other options as to where to purchase online music. The big brands are offering different online stores, and the once lonely iTunes is starting to feel a bit crowded.

The large percentage of music is consumed in CD form, or if you count illegal activities on the web, there`s a large percentage that is consumed through online piracy. Only a small segment of the market is actually buying through online stores, and with more stores appearing all the time, each of the services is producing less revenue. Most of the buyers are purchasing a few songs at a time, and there`s a very small percentage that actually buys songs by the number.