Report: Apple iTunes gaining traction

The Pew Internet & American Life Project ran a survey among 1371 Internet users, according to Macworld UK. The report shows legit online music services gaining ground vs. file sharing networks known for rampant piracy.

“While online music services like iTunes are far from trumping the popularity of file-sharing networks, 17 percent of current music downloaders say they are using these paid services. Overall, 7 percent of Internet users say they have bought music at these new services at one time or another, including 3 percent who currently use paid services.”

“Over 11 million Internet users visited legal online music stores in March. iTunes, which reached more than 2.3 million Americans in March, has added nearly a million unique visitors since October 2003,” the report states.

Full article here.

26 Comments

  1. interesting will iTunes make a second windows media player or it will eventually die ot like mac did before? wil apple give the rights for othe companies to make othe ppl make mp3 to access there store?

    another thing is iPod another fashion thing that will desapear with time, or will it actually stay in and keep the market on the world most poular mp3??

  2. another thing i’v noticed before, people keep on saying that mac market doesnt show a lot of things, even on this web site, well how come people tell the market share of an iPod since that suppose to matter?
    would some 1 explain that to me please.
    another thing if apple’s market is so low why companies make a new software for mac os X? doesnt make sence does it?

  3. Mac market share matters less than iPod share because of the age of the markets. Apple has a huge installed base of Mac users out there, even if they aren’t buying new computers, so if Apple only sell 2% of all PCs sold in a year, they still have up to 8% of the installed base.

    The MP3 player market is brand new. Market share here matters, because with early domination you get the chance to mould the market to suit your business.

  4. Since the iPod market is new would that mean that when the fill of novalty weares out people will buy mp3 from dell or microsoft or any other rival company making the iPod market do decrease?

    The other thing, would apple make the iTune store open to all rivals to meintain it the most popular leagal music download?

    Dave H (or any one else) you seem to know about mac, could you explain it please.

  5. Why can’t people see what Apple is doing with ITMS and iPods? They have to keep the iPod closed to other protected formats, that way you can only buy from ITMS. The reason for this is simple. Say I buy a iPod and over the next years I buy 250 songs from ITMS. Some time in the next 2 years, I lose my iPod or I brake it, or just want something new. I am not going to throw away all my songs I bought on ITMS. So clearly I only have one option for a Mp3 player. This is probably why HP in onboard, because they can see the BIG picture. If Apple sells enough iPods and at least 50.00 worth of songs to most iPod owners then most people will not SWITCH. Nothing better than a customer for life.

  6. Artiom, the Ipod also plays MP3 files (among other formats), so i guess your concerns are kinda bit off. So if it was encoded or bought from other store (suposing it is not DRM’ed)it should play fine. That’s the beauty of the ipod.
    Of course, besides being an portable player, lok at it as an external firewire hard disk. I has saved my behind a couple of times! No other player in the market comes close to it! you have to look beyond what the press say about it!

  7. thats make sence now, so basically apple is making it’s self a major market that no one else could come even closer to it. well it was like that when apple was domonant in computers, could the history repeat it self?
    i’d lovee to have an iPod but 1) I’m waitng for ipod mini to come out in england and 2) I’m waiting for the prices to drop.
    the other concern is what if microsoft gets in the game and will try to be the number 1 player like its trying to be in the gaming market with xbox?

  8. artiom, Dave H is right on. People use that Mac vs PC market share numbers to attempt to illustrate that the Mac is losing customers. Market share numbers only accounts for new purchases of a given product instead of installed base. Since MP3 players are so new, This gives a decent idea. When people talk of the “declining” Mac marketshare to say that Apple will dissappear in 2 years they are totally forgetting that their is 20 years worth of installed user base as well as currently rising sales numbers, its just that PC sales rise at a quicker rate making the number a bit misleading. Mac users know we are not half of the worlds computers, but we look deeper at the numbers than others. How many businesses buy hundreds or thousands of cheap dells each year, a market that Mac dont even attempt at. Talk about skewing the numbers. People buy PCs for different markets (research, education, business, etc.) but everyone who buys an MP3 player is pretty much in the same market (entertainment).
    As for your other questions,
    Yes the iPod is very fashionable right now, which is something that usually levels out over time, but it also has great and simple functionality, which, as long as Apple can keep it toward the cutting edge will allow the device to have a longer lifespan than just a silver Gucci purse.
    As for software, like I said before, the marketshare numbers are very misleading, our numbers continue to grow, which means more money out there for more developers.

  9. Im not sure whether you are asking is Apple should allow WMA files to play on the iPod or if it should liscence AAC/Fairplay codecs to other Online stores or digital device manufacturers? These are up for grabs, Steve Jobs is the only peson who can answer those questions, currently they do none of the above.

  10. Apple didnt necessarily make the market, rather they blew the doors off of what was there. By making the iPod useful and stylish and all around kick a$$, they made everyone sit up and notice these types of devices.

    Microsoft really has no muscle in this market. People dont think of Microsoft when they think of cool electronics, Sony has a much better chance there. Look at the xbox. it does well, but it has sold 1/5 of the consoles as the Playstation. And the reason they do as well as they do is shere money power. Buying game makers ans exclusive games left and right, the thing is just a crappy old PC in a smaller box. Plus they are losing money on it overall. Only a company with as much cash as them could hold on this long.

  11. the other concern is what if microsoft gets in the game and will try to be the number 1 player like its trying to be in the gaming market with xbox?

    Buffy, you answered this well. MS will be like an average college basketball player thrown into an NBA playoff game. In the year and a half I’ve been in Seattle I have come to know some MS people, and it’s so weird to see them trying to act cool in social situations, when it’s obvious they haven’t got a clue. They’re nothing but poser geeks. MS will never be but a minor player in music.

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