It was widely [url=http://www.macsimumnews.com/index.php/archive/forrester_research_itunes_revenues_down]reported[/url] that a study by Forrester showed that since January the monthly revenue has fallen by 65 per cent, with the average transaction size falling 17 percent. But the research firm says its data has been misconstrued, according to [url=http://www.informationweek.com/news/showArticle.jhtml;jsessionid=5Q2I2HIHNBQJUQSNDLPSKH0CJUNN2JVN?articleID=196604031&subSection=]InformationWeek[/url].

What Forrester's research did show is a leveling off of iTunes sales, which has been running about 20 songs per iPod since the digital music players went on sale. The number has gone up lately to 23, Josh Bernoff, analyst and author of the report, wrote in his [url=http://forrester.typepad.com/devicesmedia/]blog[/url]. In addition, the median transaction is just $2.97, with a third of all purchases amounting to one song. The top 34 percent of iTunes customers account for 80 percent of all purchases, Forrester said. Apple isn't in trouble because its money in the digital music business comes mostly from iPods. ITunes is meant as a complement to the player, the research firm adds.

Instead, Apple's leveling off at about $1 billion a year in worldwide sales on iTunes is an indication that even at 99 cents a track, most consumers still aren't sold on the value of digital music, Bernoff explained. Also, iTunes's annual sales don't nearly make up for the drop in CD sales in the U.S. alone, which is down $2.5 billion.

Bernoff also ends his blog comments with an interesting perspective on Apple's secrecy: "Finally, a word for Apple. Apple is extremely stingy with information about their business and public comment. Their unwillingness to comment on the record or off about anything they're working on or any industry results beyond the basic statistics fuels speculation, pro and con, from their supporters and detractors. In the research business we like facts -- and every other technology company is more open with them. So maybe it's time for Apple to share a bit more. When the real bad news hits -- and it's inevitable, no company gets everything right -- that openness would pay off."