14 DAY TRIAL // Not that long ago, the iTunes Store became the third largest music retailer in the United States, with a track record of over three billion songs purchased since its inception. Apple's service has been seeing a steady and stupendous growth, surpassing other online retailers and catching up quickly to brick and mortar stores. Given its performance so far, there is nothing preventing the iTunes Store from becoming the world's biggest supplier of music one day.
According to the UK Record Industry Annual Survey, the iTunes Store is on its way to becoming the biggest supplier of music in the world within just two years. Although it might seem a bit far-fetched, the report makes this claim as part of its in-depth analysis of the UK music sector. Apple outselling all other record companies combined within just two years would be quite an achievement, but it would not be Apple's doing alone. Sales of CDs have been declining worldwide and customers have started migrating from the album to the track as buying habits shift. Another driving force is the widespread adoption of digital music players for which it is far more practical to purchase music online rather than from a brick and mortar shop. "The record industry peaked about six years ago and is going down. Apple is going up very rapidly. Apple is also super profitable, while the record industry isn't," said report author Cliff Dane.
iTunes Store sales have been growing exponentially, but even if the two year estimate turns out to be wrong and it takes twice as much, Apple will be a major force in the music industry. As such, it is not surprising that the labels have been trying any way to get some kind of leverage on Jobs, and get more out of their deal today. Once the iTunes Store reaches that number one spot, it is going to be next to impossible to strong-arm Jobs or ignore his demands.