Report: Apps garner limelight, music garners bucks

Despite the hype surrounding applications, Apple Inc.’s (AAPL) iTunes music service continues to be the main draw for consumers sporting devices that can access the company’s vast selection of downloadable content.
According to results from its online survey “iTunes Usage Report,” The NPD Group noted that while nine out of every 10 owners of an iPhone or iPod Touch said they have downloaded a free application to their device, 82% said they have actually paid for a music download. In addition, 56% of those surveyed that use the iTunes store said they purchase music exclusively.
“Sales growth in digital music has been slowing, and some of that decline might be related to the distraction from apps; however, iTunes shoppers are still completely engaged with music, whether it’s about listening, discovering or buying,” said Russ Crupnick, VP and senior entertainment analyst for The NPD Group. “Apps and video certainly do compete for consumer dollars, but they can also be used to promote music and re-energize digital music and video download sales.”
The report was based on 3,862 completed surveys.
While music remains the biggest draw for paid downloads, the survey found that two out of every three iPhone or iPod Touch users that have downloaded an application said they used them regularly, and that 69% of those that have yet to pay for an application are interested in putting down some money on one in the future.
Apple has an event scheduled for tomorrow where the company is expected to unveil updates to its iPod line up as well as possible enhancements to its iTunes music store.