Apple now third-largest US music retailer

[Farid]

http://www.reuters.com/article/technologyNews/idUSN2531356120070625

Apple Inc.'s digital music store iTunes is now the third-largest music retailer in the United States with 10 percent market share, overtaking Amazon.com in the first quarter, according to a survey released on Friday.

The NPD Group report highlights the growing strength of digital music in the U.S. market as physical sales of compact discs continue to slide.

Apple's iTunes is third behind market leader Wal-Mart Stores Inc. with a 15.8 percent share, and Best Buy Co Inc. with a 13.8 percent share, according to the survey of 40,000 people aged 13 and older.

Both of those retailers mostly sell music in the CD format. Online store bestbuy.com has a 1.1 percent market share with sales of both CDs and digital music..

Amazon.com Inc. dropped to fourth with a 6.7 percent share. Its sales increased but not as fast as rivals.

And to remember that some music majors didn't believe in digital distribution until very late...

 

[Humus]

And to remember that some music majors didn't believe in digital distribution until very late...

CDs are digital

 

[Rangers]

10% of a ever shrinking pie...

Does Itunes actually make Apple any money yet? Last I heard, it was break even. The money was all made off Ipod hardware.

 

[Skrying]

10% of a ever shrinking pie...

Does Itunes actually make Apple any money yet? Last I heard, it was break even. The money was all made off Ipod hardware.

It will never pull much money, but that's not its point really. Its to fuel the real money maker, iPods and soon Apple hopes the iPhone.

 

[Rangers]

It will never pull much money, but that's not its point really. Its to fuel the real money maker, iPods and soon Apple hopes the iPhone.

Funny, you should think it'd be the reverse. Such as it is in games.

The hardware should be a trojan horse to get everybody on iTunes.

 

[Skrying]

Funny, you should think it'd be the reverse. Such as it is in games.

The hardware should be a trojan horse to get everybody on iTunes.

No, it wouldn't make sense at all to be reverse. Now if there was a required license to have your music be playable on the iPod then your thought would make sense, but then again the iPod would be forgotten in seconds if that were the case. Nearly every hardware market works differently than consoles.