Here’s why Apple wants a new streaming music service
Streaming music services took market share from digital downloads last year, which helps explain why Apple (AAPL) is so interested in launching a new streaming service. Apple’s iTunes Store dominates in music downloads, but consumers have been rapidly shifting to subscription and ad-supported streaming music services. Apple trails in streaming music behind companies like Pandora Media (P), Spotify, Sirius XM (SIRI) and other Internet radio firms. In 2014, revenue from streaming music services in the U.S. rose 29% to $1.87 billion, the Recording Industry Association of America reported Wednesday. Streaming services accounted for 27% of overall U.S. recorded-music revenue last year, up from 21% in 2013. Music downloads remained the largest component of the industry last year, with 37% of revenue. But that’s down from 40% in 2013. Music on CDs and other physical media accounted for 32% of revenue in 2014, down from 35% in 2013, the RIAA said.