According to NPD, Apple's iTunes now sells 25% of all music in the US. That's up from 21% last year, and 14% the year before. Zoom. Zoom. Walmart, by contrast, is at 14% combining their real-world stores and online distribution.
In the strictly digital domain -- which continues to gain share -- iTunes accounts for 69% of downloadable music, with Amazon trailing at 8%.
Those numbers, in case they don't smack anyone immediately in the face, are HUGE. Despite the jump to $1.29 for - quote unquote - premium music, the shift to DRM-free, combined with on-device downloads for the iPhone and iPod touch, might just be enough to keep the juggernaut rolling. Next up, we'll see how Digital-45s and "cocktail" do for them...
[Marketwatch via iLounge]
Reader comments
iTunes Now Sells 25% of US Music
I was actually asked "Yeah, but what are you gonna do when the iTunes fad dies off? How are you gonna get all your music?"
I wanted to go off. Because apparently it's not a "fad" according to these numbers.
How are unit sales defined? I think when Wal-Mart sells a physical CD it counts as 1 unit, but each single track download also counts as 1 unit. Obviously it's better to sell whole albums than individual tracks (which is what iTunes excels at). I'd like to see the sales compared in total revenue terms.
Having the Pandora Radio app on my phone, with the ability to purchase the song/album that I'm listening to from iTunes, has created a few purchases from me :P
Instant gratification rocks!
@Drake:
You shouldn't worry about it being a fad.
You should worry that the growth might continue.
Assume Apple allows the Pre, and Android, and Zune users to access the iTunes store with their computers and/or their devices (and why wouldn't they, it makes Apple money hand over fist, and the labels will demand that no one be shut out).
Walmart and Amazon will fall to single digit market share. Apple's pricing power will be come too great, and the entire music industry will essentially fall under their control. The company that censors a dictionary will have effective control of music distribution.
That is not a good scenario.
@Heathsnow:
Well said.
Standing in isles at a music store looking at cover art to decide if you want to buy the music is utterly insane.
I've bought more music on iTunes in the last year than I've bought in stores over the last 20 years.
The sooner the Music industry understands this and stop spending their resources attacking their customers the better.
@icebike
No, apple will not censor "dictionary" songs, just plaster every rap song ever made in human history with a explicit sticker.
Oh and 17+ "Puff the Magic Dragon" too for its sexual innuendo.
This is crazy cause i don't know the last time i paid for music i get all my music for free. i dam near get my movies for free i just rent a movie from netflix copy it and have it forever and if i really like it i put it on my iPhone
That is an incredible percentage of market share to have. They will likely be under some pretty strong pressure soon but in the meantime it's huge.
I'd be interested to see how much they make on that 25% market share compared to the competitors??? Do they do it more efficietly?
Kick Butt