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ITunes Continues To Soar In Retail Music Over Amazon And Walmart

By: Bruce Houghton
2010-05-28

iTunes continued to be the top retailer of music with 28% of all music purchased by U.S. , up 4% since Q1 2009 according to researcher NPD. Amazon gained 3% to tie Walmart's shrinking music department for second position at 12%

Sales of digital tracks and albums accounted for 40% overall music sales in the first quarter of 2010, up 5% from Q1 2009.* 

iTunes Flat For Last 4 Quarters

When reviewing sales of digital music separately from CDs, NPD found that iTuness share of the digital-music download market has remained essentially flat since Q1 2009 - growing just 1% to 70% of the digital music market last quarter. At the same time, AmazonMP3 grew by 4% to reach 12% while Amazons share of the CD market grew 2% to 11%.

"Amazons growth reflects a stronger position in both the CD and digital formats, said Russ Crupnick, VP of NPD. This dual-pronged approach of selling both digital music and CDs helps attract the most valuable and committed music buyer who prefers access to both formats.

Walmart led U.S. CD purchases in Q1 2010 with a 17% share of the retail market. Best Buy followed Walmart with 14%, Amazons 11 percent share positioned them in third place.

* NPDs data is based on a combined music-retailer ranking that reflects the combined sales of CDs and digital music downloads (i.e., 12 digital music track downloads are equivalent to one CD).

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About the Author:
Bruce Houghton is a 25 year music industry veteran who owns booking agency Skyline Music and the tour marketing company Skyline Innovations.

http://www.hypebot.com


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