On Tuesday, Apple announced the most profitable quarter in the history of the Sagittarius arm of the Milky Way. No company has ever made more money in a three month period, ever. To break it down, the company made $570,000 a minute or nearly $10,000 a second.
Hidden below all the 11-figure numbers for iPhone sales were the stats about iTunes. Yes, there was growth year-over-year ($2.6 billion vs $2.4 billion), but that increase has more to do with the sales of apps than music. In fact, iTunes saw a 7% decline in net sales of digital media.
This is in line with the overall impression that there’s been a steady fall in the number of digital tracks being sold. According to the RIAA, digital singles revenue fell 11% in 2014 while digital albums dropped 14%.
What’s the cause of this? Streaming. No wonder Apple bought Beats. The question is, when are they going to relaunch the product? And how will it compete with Spotify and Rdio? Stay tuned.