iTunes Store Customer Spending Down 24% (Report)

It would seem that Apple's purchase of Beats and attendant move into the streaming music service business was prescient. CNN, citing a report from Morgan Stanley analyst Katy Huberty, writes that Apple's per-user spending in its iTunes Store -- which sells and rents television shows, movies and books as well as music -- dropped 24% year over year.

The decline isn't new news -- Nielsen SoundScan reported in January that U.S. download sales had decreased 5.7% in 2013 -- but the dramatic effect that the download sales decline has had on customer interest within the iTunes Store certainly is.

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Streaming music has yet to stem the tide of industry revenues' general decline, down worldwide by $600 million last year. That, in spite of a 51% increase in revenues from streaming.

As reported in January, 49% of music-directed investments -- totaling $838 million -- went to services that license music, services like Beats Music, Rdio and Spotify.

The company, which posted Q2 2014 revenues of $36-38 billion, had a good year with iTunes in 2013, bringing in $16 billion, up 25% over the year previous.