Digital media sales racked up their slowest quarter in quite some time in the second quadrant of this year, with iTunes sales down 7 per cent, Strategy Analytics claims.
The latest report from the research team reveals revenue growth for Google, Yahoo, Microsoft, Apple (in its music related products and services, aka iTunes, category), and AOL saw an overall 0.8 per cent slowdown quarter on quarter, down from 3.3 per cent in the previous quarter and 3.4 per cent in the same period last year, Rafat Ali writes. Google was the only one of the five to see improved revenues.
Apple’s iTunes was down 7.0 per cent quarter-on-quarter. That doesn’t reflect anything other than typical seasonal patterns, though, the researchers point out, and is in line with a 6.9 per cent drop in the same period the previous year.
“The global digital media economy continues to expand quickly with an annual growth rate of 31%,” said Martin Olausson, Director of Digital Media Research at Strategy Analytics, “but we are now seeing a considerable slowdown in quarter-on-quarter growth across the board.”
“It seems that not even an emerging sector such as digital media is immune to the global economic downturn,” added David Mercer, Vice President and Principal Analyst at Strategy Analytics. “Companies relying solely on digital revenues for growth may struggle in the second half of 2008, as consumers and advertisers alike tighten budgets.”