As revenues from streaming music are on the increase, music downloads are on the decrease and Apple is employing a new plan to launch a Spotify type service and an Android compatible iTunes.
Subscriptions to streaming music sites have risen by 51 percent however music downloads have dropped by 13 percent. In order to keep up with the growing market, Apple is in talks to launch their own version of Spotify and to create an iTunes app for Android users.
The streaming music service has definitely become a competitive marketplace with companies like Pandora and iTunes radio all competing for their market share. Spotify, which also offers streaming radio is different in that it also allows users to listen to full albums online.
Apple is trying to copy Spotify’s model, according to sources in order to take more of the market share in the online music business.
According to the Recording Industry Association of America, services like Spotify, Pandora and YouTube generated $1.4 billion in subscription, advertising and licensing revenues which was up 39 percent as compared to 2012.
By creating an Android app, Apple will also be able to rival Google and Samsung, as Android services are currently growing more rapidly than Apples.
Currently, iTunes accounts for more than 40 percent of US recorded music revenue but to keep this figure stable, change definitely needs to be made.