iTunes Store still number one music retailer: report

Stephen Withers
Thursday, 07 August 2008 02:50

Business IT - Technology

Apple's iTunes Store has retained its position as the leading music retailer in the US, according to market research firm NPD. The company's latest results cover the first half of calendar 2008.

NPD tracks sales of music as digital downloads (including over-the-air sales to mobile devices, but excluding ringtones) as well as CDs sold online or in physical stores. Where music are sold as individual tracks, the company uses an arbitrary figure of 12 tracks per CD.

But the company only releases rankings, not sales figures that would tell us whether the iTunes Store is pulling ahead of its rivals at this stage.

"We expect Apple will consolidate its lead in the retail music market, as CD sales continue to slow," said Russ Crupnick, entertainment industry analyst at NPD.

iTunes surpassed Wal-Mart as the biggest music retailer in the US in early 2008. In June, Apple announced it had sold over five billion songs.

It's worth noting that the number two and three retailers - Wal-Mart and Best Buy - both have a multi-channel strategy, selling CDs through their physical stores and web sites, as well as via download services.

Amazon has risen to fourth place, which NPD ascribes to the fact that online sales of CDs have been falling less quickly than at physical stores (have you noticed the way your local 'music' store has largely morphed into a DVD outlet?), and to the opening of Amazon's download service in September 2007.

Why else does NPD think Amazon is doing well? Find out on page 2.