Apple Music Service: When you think about Apple Inc. (NASDAQ:AAPL), what comes to mind? Like many, you may see visions of an iPhone or iPad in your head.
While there are a lot of people thinking about the next big project that Apple Inc. (NASDAQ:AAPL) may be working on, many overlook the fact that the Cupertino-based company has been so dominant in the music downloading industry for such a long time.
The NPD Group, a global information company, recently published this release on its website: After 10 Years Apple Continues Music Download Dominance in the U.S.
The title pretty much says it all. Apple has been involved in this space for roughly 10 years. Over that time, there have been many companies that have wanted to grab a piece of the pie. While some have hung onto a small share of the market, Apple Inc. (NASDAQ:AAPL) has kept the top spot.
Every year, NPD releases an annual music study that focuses on statistics such as how many people are downloading music online.
Despite the fact that services, such as Pandora, are becoming very popular, Apple is hanging in there and giving people everything they want.
Here is what Russ Crupnick, senior vice president of industry analysis at NP, had to say:
“Since the launch of Apple’s iTunes store, digital music downloads have become the dominant revenue source for the recorded music industry and iTunes continues to be the dominant retailer. There’s a belief that consumers don’t need to buy music because of streaming options, when in fact streamers are much more likely than the average consumer to buy music downloads.”
With consumers just as excited about music as ever before, this likely explains why Apple Inc. (NASDAQ:AAPL) is thinking long and hard about an “iRadio” service.
This is something we have discussed in the recent past.
While there are always going to be people who are going to turn to free online music streaming services, owning music is a big deal. NPD says that “among consumers who listened to music on Pandora and other free music-streaming services, 41 percent reported that owning music was important to them; in fact, many free streamers attributed buying more downloads to their discovery on a radio or via an on-demand service.”
When it comes to the music industry, nobody should doubt Apple Inc. (NASDAQ:AAPL). The company has been dominating for a decade, and will likely continue doing so for years to come.
Check back here for more updates on Apple Music Service.
DISCLOSURE: I have no positions in any stock mentioned.
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