The App Store is believed to be the current center of Apple’s attention, as iPod sales are flattening after years of growth. The problem, says BusinessWeek, is that record labels are now more dependent than ever on Apple, as some 90 percent of US digital music sales are handled through the iTunes Store, and approximately 75 percent of all media players sold are iPods. CD sales are continuing to fall, which means that without Apple’s help, the record industry will further shrink.
“Our biggest concern would be if they started resting on their laurels,” says an unidentified senior label executive. “We need them to continue innovating.”