Apple is considering its largest overhaul of its iTunes Music Store in over a decade as it seeks to revive the sale of MP3 downloads.
The report claims only 1% - 2% of iTunes Radio users are opting to buy tracks, preferring instead to dine for free on random playlists served up by artist and song playlists.
Apple had been banking on its hybrid streaming service to halt a reported 15% decline in downloads, the report says, but the failure to do so has prompted intense internal discussions on how to revamp iTunes.
Committed to change
A major label executive told Billboard: "iTunes Radio hasn't solved the problem of refreshing the iTunes store. While listeners are clicking the buy buttons, the traffic it is driving is in the low single digits of listeners."
Meanwhile another unnamed executive said the iTunes Radio flop "is driving the types of conversations they are having. They know iTunes has to change radically, but they still don't know which way it will go. But it will be completely different in three to five years. They are committed to making that happen."
Just last month Billboard brought word that Apple may launch a fully fledged Spotify rival to make up ground on other streaming services and even an Android version of the iTunes Store.
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A technology journalist, writer and videographer of many magazines and websites including T3, Gadget Magazine and TechRadar.com. He specializes in applications for smartphones, tablets and handheld devices, with bylines also at The Guardian, WIRED, Trusted Reviews and Wareable. Chris is also the podcast host for The Liverpool Way. As well as tech and football, Chris is a pop-punk fan and enjoys the art of wrasslin'.