Digital music sales slowing?

A recent report by Forrester Research has found that digital music sales at the Apple iTunes Store and other leading download services are down significantly this year. While Apple does not reveal its numbers, Forrester was able to draw some conclusions based on credit card transactions. They show a 65 percent drop in monthly revenue since January with the average transaction size shrinking 17 percent. Forrester has also found that iTunes sales do not appear to be cutting into CD sales. Instead, they appear to be an incremental purchase.

User frustration with DRM appears to be at least one contributing cause. DRM looks to consumers more like a problem than a benefit, says analyst Josh Bernoff.

While it may be too early to sound alarm bells, the major labels are already looking at other options, including blanket licenses and DRM free music.

Source: AppleInsider

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