iTunes download faces stiff competition from streaming music services

iTunes download faces stiff competition

iTunes downloads can soon be accessed by users in multiple devices using a single account according to Bloomberg sources.

Apple Inc., which owns and operates the iTunes service, is reportedly in talks with record labels to provide the value-added service in the face of increasing competition from other online companies offering streaming music.

Warner Music Group, Universal Music Group, EMI Group and Sony Music Entertainment will be announcing a new deal with Apple around the middle part of this year, the anonymous sources was quoted by Bloomberg as saying.

The partnership between Apple and the record companies intends to sustain demand for iTunes downloading for sale versus free streaming music from the Internet regardless of the device being used.

Under the supposed deal, Apple will backup iTunes tracks and let music be downloaded to iPod, iPad, and iPhone devices using a single account.

Industry tracker MPD Group Inc. reported that as of September 2010, iTunes had 69 percent of total digital downloads in the United States. The iTunes store and service was launched by Cupertino, California-based Apple in 2003.

Online competitors of iTunes include Rdio Inc., Spotify Ltd. and MOG Inc. They deviate from the downloaded purchased music scheme ruled by iTunes, and instead let users listen to music tracks for free.

Record companies meanwhile are exploring the partnership with Apple since sales for downloaded music have fallen flat. The companies were hoping growth in music downloads will offset the expected decline of compact disc sales.

Apple is also mulling a revamp of its MobileMe service aside from changing its iTunes download policy.

Posted by Melanie Mendoza on Monday March 07 2011, 5:33 AM EDT. Ref: Bloomberg. All trademarks acknowledged. Filed under Featured News, Shopping. Comments and Trackbacks closed. Follow responses: RSS 2.0