Major record labels will allow iTunes to sell all its music stripped of digital rights management (DRM), removing a barrier to digital music buying, while iTunes will introduce in April the tiered pricing the industry wants

We expect no real bounce in demand, however, as Apple’s DRM was not a restriction for iTunes customers as most owned iPods, the dominant music player in a market which is almost fully matured – we expect few iPod customers to pay to upgrade their libraries to DRM-free

News of peace breaking out between iTunes and the recorded music industry was overshadowed by reports of the continued steep decline in CD volumes sold in the US market, down almost by one fifth in 2008 from 2007, with digital increases again failing to offset the decline

The recorded music market decline continued without pause in 2007, with global sales down an estimated 11% in value. Physical and internet piracy continue to drive the CD sales decline, along with substitution to downloads, and the bankruptcies of physical retailers in the US and UK. Meanwhile, Apple’s iPod+iTunes music ecosystem continues to be favoured by customers, driving the growth of the digital music market, as ringtones stabilise globally. These recorded music market trends are reducing music publishers’ associated royalty income, although offset by rising royalties from the use of music on broadcast media, film, advertising and the internet

Powered by strong computer sales at Apple stores and surging European sales (and the weaker dollar), Apple’s dollar revenue for Q1 FY2008 rose 35% year-on-year to $9.6 billion, exceeding guidance of 29%

School’s back and strong computer sales drove Apple’s Q4 FY2007 revenue to $6.22 billion, up 28.5% year-on-year

Apple revealed an updated iPod range to stimulate demand in the run up to the all important Christmas quarter, when iPod revenues typically account for 50% of Apple’s totals

Apple has now launched downloads of 28 US TV series in the UK, hoping to drive demand for portable video watching on iPod or for home viewing via Apple TV

Apple reported strong revenue growth for Q3 2006/07, up 23.8% year on year to $5.41 billion, powered mainly by strong computer sales

iPod revenue (quarterly, year-on-year) declined for the first time. Even though unit sales were up 24% year-on-year, the average iPod price was down 20%. Apple group revenue growth is increasingly dependent on Mac sales and new product launches, like Apple TV (March 2007) and the iPhone (in June 2007)

iPod volumes hit a record 21.1 million units sold in the key Christmas quarter, but year-over-year quarterly revenue growth declined again to 18% (from 29%) due to lower prices for all iPods and consumers’ drift to low priced flash memory based players (iPod Shuffle). Apple’s push on the iPhone limits the iPod’s future development and hence this segment’s future revenue growth

Happy Birthday iTunes! It is just over a year since Apple launched iTunes and the media continues to talk up the second coming of the music industry, whose saviour appears in the form of affable Steve Jobs. iTunes sold a total of 70 million tracks online in its first year, well below its target of 100 million, but a respectable showing, especially since it spawned a small flock of competitors determined to out-sell iTunes.