Apple explores the music market for a possible launch of an On-Demand Streaming Service
Billboard reports in line with declining iTunes music sales that Apple, Inc. is testing the waters for the possibility of having music streaming services that are subscription-based and an Android iTunes app as well.
The talks are purportedly part of a way to fend off the steep decline of iTunes downloads in the U.S. Nielsen Soundscan research shows sales for digital album went down to 13 percent for the March 9 week while the sales per track are down 11 percent from the same period of 2013. Early March, a report claimed Apple was in talks with labels for exclusive content releases on windowed basis to limit sales album to iTunes for a particular period.
According to an unnamed source from a major label, they are thinking about transitioning customers from iTunes proper to streaming service. Thus, when one buys a song with a $1.29 fee and place it in his library, iTunes may send an email that points out that for a $8 per month, that song plus many others can be accessed in the iTunes store.
Everything is still on the "what if"-stage, and while they are getting underway, some think Apple will make a standalone app from iTunes Radio, and take it out from the iOS Music where it now resides. Early March, it was reported that iTunes Radio managed to get a bigger portion of streaming market than Spotify, a major force in that department. Apple's solution boats a free feature with a massive user base installed.
Despite the influx of users, some of whom got listening access through the iTunes Match, still dominating almost one third of the market is Pandora. Pandora's service experienced a marginal hit when iTunes was launched, but soon recovered to a positive growth. Furthermore, about 40 percent of Pandora listeners listen to iTunes Radio as well.