iTunes Music Sales Are Plummeting This Year

iTunes music sales have fallen 13% since the beginning of the year, The Wall Street Journal's Hannah Karp reports.

The decline in sales is not a surprise for Apple - sales were down 2.1% in 2013 - but the news underscores how consumers have steadily moved away from a-la-carte offerings like iTunes toward streaming services such as Pandora and Spotify.

Apple is believed to have purchased Beats Electronics in part because of its streaming service, Beats Music, to integrate a streaming option into iTunes.

Apple is reportedly in talks with record labels to lower the cost of Beats Music, which runs users $9.99/month or $99.99/year.

Last month Apple denied rumors it would shut down Beats Music, saying instead that a rebrand was likely.

As you can see, iTunes music revenue has been bumpy but essentially flat since 2010. Consumers are much more interested in iTunes for its app offerings.