iTunes passes Amazon to become third largest U.S. music retailer
Apple Inc.'s iTunes Store recently cruised by online retailer Amazon.com to become third largest music retailer in the United States, according to a new study from market research firm NPD Group.
Apple trails only industry leader Wal-Mart with 15.8 percent and runner-up Best Buy with 13.8 percent. By comparison, Best Buy's online music store, which is restricted to digital tracks like iTunes, garnered only a 1.1 percent market share.
NPD attributed Apple's gains to stellar iPod sales during the past holiday shopping season.
Upon last check in November of 2005, Apple ranked seventh on the list of leading U.S. music retailers, having then passed Tower Records, Sam Goody and Borders to crack the Top-10 for the first time.
According to NPD, digital music downloads during the first quarter of the year accounted for only 13.8 percent of all music purchases. The remaining 86.2 percent were sold in physical disc format.
25 Comments
I think DRM-free tracks will help Apple take larger slice at faster rate (assuming more studios join the party).
With video rental and 720p video with subtitle and 5.1-channel audio, Apple should have no problem taking large slice out of DVD market as well.
I'd be curious to see how many of the purchases are done using gift cards. I know I've noticed lately that there are a lot more people who casually throw out comments like "Oh, I've been meaning to buy that CD.. I got an iTunes gift card and I've been waiting to find something to use it on."
It's an easy gift to give, and it's hard to find someone who wouldn't want one.
I think Apple are going to make a bigger effort with the physical retail. I remember two reports accompanied by patent filings from a 'long' time ago about iPod content being bundled on Blu-Ray discs and cheap 'throw-away' branded iPods. This will be a pretty big step to kicking some real ass accompanied by the 720p/5.1 video subscriptions and DRM-Free music as mentioned above.
Upon last check in November of 2005, Apple ranked seventh on the list of leading U.S. music retailers, having then passed Tower Records, Sam Goody and Borders to crack the Top-10 for the first time.
Didn't Jobs say at MWSF in January that Apple was fifth? And that Apple was targeting Target?
Didn't Jobs say at MWSF in January that Apple was fifth? And that Apple was targeting Target?
Sounds (more than) vaguely familiar...
Dave