A new study out today reflects that iTunes revenue is down 65% overall, with the average transactions size, such as how many songs or albums people purchasing and downloading, is down 17% well.
Forrester Research analyzed purchasing statistics over a 27 month period and on average 3.2 online households only purchased one song during the time the study was taking place. In contrast, while iTunes revenue was dropping, iPod sales quadrupled and the inventory of music and movies grew considerably over the last few months, including the adding of Disney movies that sold nearly 125 thousand films the first week.
Earlier this year Apple reported that it maintained 85% of the legal downloading market and gave the impression that the iTunes store has done quite well for itself, so one has to wonder why there is such a drop in sales for the ever popular store.
