Monday, March 1, 2010

Are Apps The New Music Model?

According to the article I read, sales of iPods are slowing. However, iPhone sales are growing, and this means the use of apps are also growing. This article takes the stance that Apple needs to develop a new platform for the sale of albums that make apps "a key channel for music sales." This is because the younger generations are much more interested in throwing their money at an app than at digital music sales. Three-quarters of digital music buyers are 25 and older, which means the young teens right now might need something different to capture their attention and keep music sales afloat.

Although iTunes music sales are still growing, it is coming from "the increasing average number of downloads per buyer." This means that once the CD generation gets older and we're left with the young kids today in their 20s, they may not be interested in using iTunes and spending money on music in this way.

The author of this article believes that if Apple can come up with a music product innovation by taking apps to a platform for sales, it will appeal to the youth more than putting songs on their iPod will. It's an interesting thought, and I'm sure we're heading for new innovations no matter what.

-- Ashley Snider


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