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Despite talk of iTunes sales reaching so-and-so million back in the Apple Showtime event in September, actual numbers don't point such a rosy picture. Forrester Research says monthly revenue has fallen 65% since January of '06, and the average transaction size has dropped 17%.

It's not just Apple's store that's falling. The entire online download industry has been either flat or declining for three straight quarters. Ouch. That doesn't bode well for Microsoft's newest entry into the market either. But with numbers saying that median households make only three digital downloads a year, no wonder sales are looking grim.


Of course, the numbers are only valid until June '06, so there may be a seasonal uptick in Holiday shopping and gifting that picks up the entire industry. We'll have to wait until next year to find out.

iTunes sales 'collapsing' [The Register]

Image via Defective by Design

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