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As the guillotine dangles over the head of iTunes music downloads, artists are starting to take urgent action. That includes the Content Creators Coalition (CCC), a top musician advocacy group. During its latest earnings call, Apple CEO Tim Cook didn’t mention iTunes music downloads — not once. Instead, the Apple chief proclaimed steady progress and booming revenues from a range of other, more modern platforms. And when it comes to music, all the emphasis has shifted to Apple Music, which now boasts more than 40 million subscribers.
“Apple Music reached a new record for both revenue and paid subscribers, which have now passed 40 million,” Cook shared. None of which bodes well for iTunes music downloads, which are strongly rumored to be on the chopping block. Since 2016, sources to Digital Music News have pointed to a planned phase-out, with the latest estimates pointing to an early 2019 closure.
After that point, Apple will no longer sell iTunes music downloads, but will continue to support previous downloads and existing MP3s. Even iPod porting will still work (which unsurprisingly has a strong group of entrenched users). Sounds like the march of technological progress. But just one problem: paid downloads pay far better than streams, by an unbelievable multiple.
Critics call the comparison apples-to-oranges, though most musicians, labels, and publishers miss the comparatively lucrative format. Meanwhile, Apple’s PR department has denied that any plans exist to terminate its paid download offering. But Apple executive Jimmy Iovine has publicly conceded that paid downloads will be nixed once demand falls below a certain threshold, and even iTunes installations in markets like South Korea have skipped the format.
Accordingly, the Content Creators Coalition, a leading musician advocacy group, is formally requesting that Apple preserve music downloads on its iTunes Store. We have noted that in recent reports, Apple is considering eliminating paid music downloads. While we understand Apple has indicated those reports are not accurate, we are taking this opportunity to communicate how important downloads are to the music community and to express our hope that you will continue offering them to music fans.
The promise of digital music has always been its ability to give fans more choices and options to find and listen to music and to give music creators more ways to reach and connect with their fans. As you know, while growing quickly, many subscription and ad supported streaming services still do not produce a living wage for artists. On the other hand, while downloads have slowed, a sale still produces far more income to creators than a stream.
Downloads also protect fans from the vagaries of technological shifts, rights disputes, and legal changes that can cut them off from valued music if the only source they have available are streaming databases. This won’t be an issue for most listeners, of course, but Apple has always strived to serve not just casual fans, but people whose identity and self-expression is closely tied to the music they love.
Finally, we note the remarkable resurgence of vinyl recordings. No one saw this coming just half a decade ago, but it is a real vital component of the music business today, and especially important to some of our most passionate fans. Clearly, many consumers are turning back to vinyl in search of high quality, “warmer” sound.
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