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Despite the invasion of iPhone, iPod Touch and iPhone apps on iTunes, music still dominates the services. According to NPD re search, virtually all iPhone or iPod Touch users have downloaded a free app. But 82% report purchasing music and more than half (56%) of iTunes buyers purchase music exclusively. A majority of iTunes user search time are also focused on looking for music.
“Sales growth in digital music has been slowing, and some of that decline might be related to the distraction from apps; however, iTunes shoppers are still completely engaged with music, whether it’s about listening, discovering or buying,” said Russ Crupnick, VP and analyst for The NPD Group. “Apps and video certainly do compete for consumer dollars, but they can also be used to promote music and re-energize digital music and video download sales.”
But will users pay for apps? 9 out of 10 have downloaded a free app, which Crupnick believes “points to a major up-selling opportunity to paid versions of the same app.”69% of iPhone and iPod Touch owners who have not yet paid for an app told NPD they are interested in possibly doing so in the future.
