Store digital content iTunes began to experience serious difficulties in connection with the growing competition in the music market and losing ground in the fight for viewers in the segment for the rental and sale of movies and television programs. It is reported 1Prime citing a study by the Wall Street Journal.
Apple’s market share in the segment of rental and sales of digital movies drops last few years: in 2012, iTunes owned over 50% of the market, and now, allegedly, the proportion of the service is 20% -35%.
Apple has stated that focus on how to present users with video content in subscription services such as Netflix and HBO, as well as iTunes, where the volume of rentals and purchases of movies in the last year and reached its highest level in more than 10 years. Experts believe that growth Apple was the result of a General rise in the industry, despite a loss of market share. Last year total rental and sale of movies in the US increased by 12% to $5.3 billion.
Apple is planning by 2020 to double its business services, which is estimated at $24 billion and includes the sale in the App Store, Apple Pay and Apple Music. iTunes was the basis for this direction since 2003, since its debut on the market as a digital store for music downloads. He later broadened and now also available in television and movies.
The services unit is the second largest Apple business and plays an increasingly important role, as the company seeks to reduce its dependence on the iPhone business, which accounts for two-thirds of its annual sales.
According to analysts, last year the proceeds from the sale of video and music in iTunes was $4.1 billion, and the media player has become the second largest business after the Apple App Store, which was almost two times higher.
In recent years, the rental market and the purchase of a new online video iTunes has encountered a number of competitors, reinforcing their positions. The film’s release in Russia is 149 rubles, and the purchase of 400 rubles.
One of the main competitors are iTunes, Amazon, which, in addition to its subscription service Prime, which also deals with rental and sale of movies on a “transactional” basis. Its market share in this segment in recent times increased to about 20%, say top managers engaged in sales of home entertainment. Recently, Amazon decided to focus on these proposals.
To increase the attractiveness of this business, Apple has hired former executives of Sony Pictures Entertainment in pursuit to take leading positions in the segment of original content, and also released his first TV show “Planet of the Apps”, which is available to subscribers of Apple Music.
Apple is also seeking to benefit from the larger transition to a subscription streaming service through the sale of subscriptions to Netflix, HBO and other services in its app store, including subscriptions on the app store and operating system, Apple TV, introduced in 2015. The Commission on subscriptions sold is 15%.