iTunes soon to reach milestone of 10 billion songs sold

Posted:
in iPod + iTunes + AppleTV edited January 2014
Apple's iTunes music store will soon reach 10 billion songs sold since its inception in April of 2003, and is marking this accomplishment with a contest rewarding the purchaser of the 10 billionth song a $10,000 iTunes card.



While Apple's iTunes took nearly three years to reach its first billion, it will soon surpass 10 billion songs sold since the online music service was introduced in 2003.



To commemorate this event, Apple has announced a "10 Billion Song Countdown" promotion that will award a $10,000 iTunes gift card to the person who downloads the 10 billionth song.



"iTunes changed the way you buy music, making songs and albums available for download, day or night. Seven years later, we?re about to celebrate our biggest milestone for music, yet ? 10 billion songs downloaded," states Apple's website.



Apple celebrated 3 billion songs sold in July of 2007 after four years of sales. Thursday's contest announcement reveals that sales trends since then have greatly increased. iTunes has taken only three years to make its 10 billion song milestone.



Despite this tremendous growth, one music executive revealed Tuesday that digital music sales have slowed in the wake of Apple relaxing pricing rules on iTunes individual songs. Songs were at one point a flat rate of 99 cents a piece. In early 2009, Apple allowed music labels to set prices between $0.69 and $1.29.



Digital album downloads grew 5 percent in December, down from 10 percent in the September quarter and 11 percent in the June quarter. Digital revenue is slowing as well: Warner saw 8 percent growth in the holiday quarter, versus 20 percent a year before.
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Comments

  • Reply 1 of 29
    elrothelroth Posts: 1,201member
    Quote:
    Originally Posted by AppleInsider View Post


    Despite this tremendous growth, one music executive revealed Tuesday that digital music sales have slowed in the wake of Apple relaxing pricing rules on iTunes individual songs. Songs were at one point a flat rate of 99 cents a piece. In early 2009, Apple allowed music labels to set prices between $0.69 and $1.29.



    Digital album downloads grew 5 percent in December, down from 10 percent in the September quarter and 11 percent in the June quarter. Digital revenue is slowing as well: Warner saw 8 percent growth in the holiday quarter, versus 20 percent a year before.



    I wish people would learn basic thinking skills. Remember when reporters were actually intelligent people?



    Digital music sales HAVE NOT slowed, and the music executive did not say music sales have slowed. Sales GREW 5%, which is less growth than the quarter before, but it is still growth.
  • Reply 2 of 29
    elrothelroth Posts: 1,201member
    The best thing about this is watching the counter showing songs sold - right now it's about 100 songs per second. There'll probably be times when it's double that or more.
  • Reply 3 of 29
    jeffdmjeffdm Posts: 12,946member
    Quote:
    Originally Posted by elroth View Post


    I wish people would learn basic thinking skills. Remember when reporters were actually intelligent people?



    Digital music sales HAVE NOT slowed, and the music executive did not say music sales have slowed. Sales GREW 5%, which is less growth than the quarter before, but it is still growth.



    Interesting comment. I think the problem is the difficulty in expressing changes in the rate of acceleration using words. The rate of growth went down, but that is more awkward to insert into a sentence. I've thought of a few other ways to express it, nothing flows well.
  • Reply 4 of 29
    Quote:
    Originally Posted by JeffDM View Post


    Interesting comment. I think the problem is the difficulty in expressing changes in the rate of acceleration using words. The rate of growth went down, but that is more awkward to insert into a sentence. I've thought of a few other ways to express it, nothing flows well.



    Sure, but awkward phraseology is preferably to factual inaccuracy
  • Reply 5 of 29
    mazda 3smazda 3s Posts: 1,569member
    Who could ever spend $10000 in music, movies, or apps??? I can understand the iTunes gift card because it is... well, iTunes. But a 10,000 Apple gift card would have been much more useful.
  • Reply 6 of 29
    Quote:

    Despite this tremendous growth, one music executive revealed Tuesday that digital music sales have slowed in the wake of Apple relaxing pricing rules on iTunes individual songs.



    Not this again, it's the same old answer.





    Price = Signal



    Price is a signal.



    By setting a lower or higher price, it's telling people which songs are good and which are bad.



    The lower priced songs don't necessarily sell more because of the lower price, people read by the price that the song is no good and decide not to bother spending the money or sampling the song in the first place.



    Music labels like the variable prices because they can tell people what song is good or bad and mess with the popular status of a particular song. Also they can mess with Apple, by allowing other online digital sales outlets to charge lower for higher priced songs on iTunes.



    So for that power and control, they lose sales. Stupid. 99¢ was the ticket to ride price.
  • Reply 7 of 29
    Quote:
    Originally Posted by JeffDM View Post


    Interesting comment. I think the problem is the difficulty in expressing changes in the rate of acceleration using words. The rate of growth went down, but that is more awkward to insert into a sentence. I've thought of a few other ways to express it, nothing flows well.





    Perhaps this is better:





    Quote:

    Despite this tremendous growth, one music executive revealed Tuesday that the acceleration of digital music sales have slowed recently in the wake of Apple relaxing pricing rules on iTunes individual songs.



  • Reply 8 of 29
    Quote:
    Originally Posted by Mazda 3s View Post


    Who could ever spend $10000 in music, movies, or apps??? I can understand the iTunes gift card because it is... well, iTunes. But a 10,000 Apple gift card would have been much more useful.



    I could finally buy that "I'm rich" application I've been eying.
  • Reply 9 of 29
    vinney57vinney57 Posts: 1,162member
    Pah... this iTunes thing will never catch on...
  • Reply 10 of 29
    The "winner" of this great gift from Apple is responsible for paying all Tax and fees etc for the prize.



    So even if you sold it on EBay for $10,000 you would be taking a loss becaus of taxes, fees and surcharges.



    Great way to thank a person!



    From Apple's rules on the "Prize".



    Limitations of Prizes. Sponsor makes no warranties with regard to any prize. No cash or other substitution is permitted, except as provided herein at the Sponsor?s sole discretion. Prize is nontransferable, unless otherwise specifically approved by Sponsor in writing. Sponsor reserves the right to substitute any listed prize for one of equal or greater value if the designated prize should become unavailable for any reason. The color and exact specifications of prizes will be determined by Sponsor in its sole and absolute discretion. Except as specifically included in the prize description, the winner is solely responsible for all applicable taxes, fees and surcharges associated with prize receipt and/or use



    http://www.apple.com/itunes/10-billi...own/rules.html
  • Reply 11 of 29
    Quote:
    Originally Posted by AngusYoung View Post


    The "winner" of this great gift from Apple is responsible for paying all Tax and fees etc for the prize.



    So even if you sold it on EBay for $10,000 you would be taking a loss becaus of taxes, fees and surcharges.



    Great way to thank a person!



    From Apple's rules on the "Prize".



    Limitations of Prizes. Sponsor makes no warranties with regard to any prize. No cash or other substitution is permitted, except as provided herein at the Sponsor?s sole discretion. Prize is nontransferable, unless otherwise specifically approved by Sponsor in writing. Sponsor reserves the right to substitute any listed prize for one of equal or greater value if the designated prize should become unavailable for any reason. The color and exact specifications of prizes will be determined by Sponsor in its sole and absolute discretion. Except as specifically included in the prize description, the winner is solely responsible for all applicable taxes, fees and surcharges associated with prize receipt and/or use



    http://www.apple.com/itunes/10-billi...own/rules.html



    Wait, so the same basic rules apply to Apple's prizes as any other monetary prizes from any other company? The nerve of Steve Jobs!!



    /sarcasm
  • Reply 12 of 29
    According to the official rules, the $10,000 card is up for sweepstakes beginning February 11, 2010 and ending upon download of the 10 billionth song.



    You can enter by purchasing a song OR you can enter by filling out the sweepstakes form with no purchase necessary. No purchase necessary is required because otherwise it is considered gambling. The gift card doesn't go to the downloader of the 10 billionth song, but rather someone entered in the sweepstakes, selected at random.



    Apple says, "Buy a song, and if it’s the 10 billionth download, you could win a $10,000 iTunes Gift Card."



    While this is technically true, "could" is the operative word here. The 9,890,292,123rd person could also win...
  • Reply 13 of 29
    Quote:
    Originally Posted by vinney57 View Post


    Pah... this iTunes thing will never catch on...



    Yeah, who would've thunk in 2001, when a badly named, overpriced toy was introduced.....



    Apple is doomed!?
  • Reply 14 of 29
    brucepbrucep Posts: 2,823member
    Quote:
    Originally Posted by Jensonb View Post


    Sure, but awkward phraseology is preferably to factual inaccuracy



    sales haves slowed

    sales ARE slowing

    sales have increased every day since the start date 2003 <<< the rate of expansion has slowed

    ergo

    sales have slowed

    its you that have the problem



    which means sales are declining because apple adds 10000 itunes accounts every day

    so pro-rating it looks bad
  • Reply 15 of 29
    daharderdaharder Posts: 1,580member
    [CENTER]Congrats Apple...[/CENTER]
  • Reply 16 of 29
    Quote:
    Originally Posted by MacTripper View Post


    Price = Signal



    Price is a signal.



    By setting a lower or higher price, it's telling people which songs are good and which are bad.



    The lower priced songs don't necessarily sell more because of the lower price, people read by the price that the song is no good and decide not to bother spending the money or sampling the song in the first place.



    so, you think people buy a song because someone tells them it's good? do you buy a song without listening to it when you even have the chance, a very easy way to play one part of the music before purchasing it?
  • Reply 17 of 29
    Quote:
    Originally Posted by AngusYoung View Post


    The "winner" of this great gift from Apple is responsible for paying all Tax and fees etc for the prize.



    So even if you sold it on EBay for $10,000 you would be taking a loss becaus of taxes, fees and surcharges.



    Great way to thank a person!



    From Apple's rules on the "Prize".



    Limitations of Prizes. Sponsor makes no warranties with regard to any prize. No cash or other substitution is permitted, except as provided herein at the Sponsor’s sole discretion. Prize is nontransferable, unless otherwise specifically approved by Sponsor in writing. Sponsor reserves the right to substitute any listed prize for one of equal or greater value if the designated prize should become unavailable for any reason. The color and exact specifications of prizes will be determined by Sponsor in its sole and absolute discretion. Except as specifically included in the prize description, the winner is solely responsible for all applicable taxes, fees and surcharges associated with prize receipt and/or use







    http://www.apple.com/itunes/10-billi...own/rules.html



    This post is just plain ignorant. How is someone taking a loss when they won $10,000? As with ANY prize won in this country (USA), all taxes and associated fees are to be paid by the recipient. Game show prizes and winnings, lotteries, 50/50s (if you're honest enough to claim it), sweepstakes, etc. are all treated the same. The prize money would be entered as "other income" on a tax return, therefore would get taxed at the same rate as one's income tax bracket. The highest tax bracket, currently 35%, would incur a tax liability of $3500. Subtract that from the original $10000 prize FOR A NET GAIN OF $6500. Auction it on EBay for even $8500 and the winner STILL walks away with $5000....all for being the 10 billionth song purchaser. Not a bad payday for being the lucky one clicking a mouse at the right time.



    How is this any different than lottery winnings?

    Those winners "take a loss" every time they win, too, huh?



    If I won $10,000, I'd be glad to pay $3500 of it towards taxes.



    Having said that, please open my eyes. How, exactly, is the winner taking a loss? Because they're being teased with a $10,000 prize, then the big bad government is gonna take their share?



    I get it, Apple should offer a ~ $15,385 prize so the winner WILL receive $10,000 NET. Makes sense.



    If you don't like the tax laws in this country, then just simply leave. Otherwise zip it and enjoy living in Obama's new "socialist" America. You're whining about someone taking a "loss" now, just wait and see what new taxes are imposed to finance our government's "stimulus" spending. (sorry, it's called investing in America)
  • Reply 18 of 29
    msnlymsnly Posts: 378member
    Quote:
    Originally Posted by icfireball View Post


    While this is technically true, "could" is the operative word here. The 9,890,292,123rd person could also win...



    No the rules say its either the purchase of the song after the 10,000,000,000th song or the form submitted right after the 9,999,999,999th song is purchased, whichever is first.
  • Reply 19 of 29
    Quote:
    Originally Posted by Dickprinter View Post


    How is this any different than lottery winnings?

    Those winners "take a loss" every time they win, too, huh?



    If I won $10,000, I'd be glad to pay $3500 of it towards taxes.



    Having said that, please open my eyes. How, exactly, is the winner taking a loss? Because they're being teased with a $10,000 prize, then the big bad government is gonna take their share?



    Not to defend the OP but the difference between the lottery and this is that the lottery is giving you cash, thus the taxes can be directly taken out of it. This is a gift card so unless Apple is willing to take the taxes out before they give the winner the card, the winner will have to find some way to pay $3500 in taxes (using your rough figure).



    I guess you could try to sell the thing on eBay but how many people there are looking for $10,000 iTunes gift cards? Could you even get a bidder for $3500 to cover the taxes?
  • Reply 20 of 29
    Quote:
    Originally Posted by elroth View Post


    I wish people would learn basic thinking skills. Remember when reporters were actually intelligent people?



    Digital music sales HAVE NOT slowed, and the music executive did not say music sales have slowed. Sales GREW 5%, which is less growth than the quarter before, but it is still growth.



    You can see the rate of growth and the total units sold in graphs here: http://seekingalpha.com/user/567124/instablog





    There is also a regression analysis which tells you when Apps will overtake Songs in total downloads. The rate of downloads is already higher for Apps.
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