Apple’s iTunes Music Store dominates as digital music sales more than triple

“The digital music market has more than tripled in a year, and that has helped offset a continuing decline in sales of CDs and other physical formats,” The Associated Press reports. “Spurred by the iPod revolution, digital music sales totaled $790 million in the first half of this year, equivalent to 6 percent of industry sales, the International Federation of the Phonographic Industry estimated in a report Monday.”

“That compared to $220 million in the same period last year… The digital boom, which now exceeds the value of the global singles market, was largely driven by sales in the top five markets the United States, Britain, Japan, Germany and France, IFPI said in Monday’s report. Sales of physical formats fell 6.3 percent by value in the period to $12.4 billion, it said,” AP reports. “Apple Computer Inc.’s iTunes online music store accounts for 82 percent of legal downloads in the United States. The company has sold more than 500 million songs online and about 22 million iPod digital music players.”

Full article here.

Advertisement: Apple iPod nano. 1,000 songs. Impossibly small. From $199. Free shipping.

Related articles:
Music managers unhappy with Apple over artist’s royalty payments – October 03, 2005
Dvorak: record companies’ biggest concern about Apple’s iTunes is clear and accountable bookkeeping – September 29, 2005
Growth of UK ‘iTunes-style’ music services hobbled by ‘greedy’ record labels’ high prices – September 29, 2005
In 99-cent fight with ‘Looney iTunes’ labels, Apple CEO Jobs will get whatever Jobs wants – September 29, 2005
Warner music exec discusses decapitation strategy for Apple iTunes Music Store – September 28, 2005
Warner CEO Bronfman: Apple iTunes Music Store’s 99-cent-per-song model unfair – September 23, 2005
Analyst: Apple has upper hand in iTunes Music Store licensing negotiations with music labels – September 23, 2005
Steve Jobs plays high-stakes poker with greedy record labels – September 22, 2005
Record labels accuse Apple CEO Jobs of ‘double standard’ as they seek to force iTunes price increase – September 21, 2005
Apple CEO Steve Jobs to repel ‘greedy’ record companies’ demands for higher iTunes prices – September 21, 2005
Apple CEO Steve Jobs vows to stand firm in face of ‘greedy’ record companies – September 20, 2005
NYT’s Pogue to record companies: it’d be idiotic to mess with Apple iTunes Music Store prices – August 31, 2005
Apple CEO Steve Jobs prepares for pivotal fight on digital music prices – August 28, 2005
BusinessWeek: Apple unlikely to launch music subscription service – August 15, 2005
Record labels to push Apple for higher iTunes Music Store prices in 2006? – August 05, 2005
Study shows Apple iTunes Music Store pay-per-download model preferred over subscription service – April 11, 2005
Record labels look to raise iTunes wholesale prices, music industry fears Apple’s market domination – March 05, 2005
Report: Apple CEO Steve Jobs ‘angered’ as music labels try to raise prices for downloads – February 28, 2005
Report: Music labels delay Euro iTunes Music Store fearing Apple domination – May 05, 2004
Greedy Big Five music labels looking to jack up iTunes songs to $2.49 each? – April 22, 2004

19 Comments

  1. Dont mean to pick nits .. but is it just me… or does every report (we see) about digital music downloads.. always seem to report Apple dominating this market by a different per centage ??

    Sometimes we hear “Apple has 75% of all music downloads”

    Other times its more like 80% …

    this guy sez its at 82% ….

    MW “keep” .. as in .. who KEEPs the accurate records ?

  2. Dont mean to pick nits .. but is it just me..

    It is just you,

    It is not a static market. It is directly related to the number of players out there and the influence of the tide in the north sea.

    MD=clue as in get a

  3. First, remember that 52.7% of statistics are made up… ” width=”19″ height=”19″ alt=”grin” style=”border:0;” />

    Next, whenever you read about percentages, you have to look around for key words. For example, some article may point out that Apple has 75% of the market for music downloads in the US. Another article might point out that Apple has 90% of the market for music download in Denmark. Skip those important parts and you have some confusion.

    Also, look for words like “over”, “around”, etc. For example, a reporter may say Apple has “over 80% of the market.” Well, 82% is over 80%. But as we all know from virus reporting, reporters are loathe to give exact numbers because someone might call them on it.

    Also, When they talk about “world-wide”, well, everyone has a different opinion of what “the world” is. Did they include Malaysia? And, as we all know, you shouldn’t forget Poland. That’ll skew statistics around a bit as well, though not to a large degree.

    Also, you have to consider what stores they’re looking at. Obviously, they checked with Apple, Napster, Real, and Sony. Did they check in with Walmart, BuyMusic.com, MSN and AOL? How about eMusic, LegalSounds.com, Yahoo, MTV, etc. How about country-specific stores, such as DestraMusic, MuleMusic, etc. You start adding those in and the numbers change. No, not dramatically, but it could spell the difference between 82% and 80%.

  4. the iTunes Music Store has around 15% in germany, a distant second to musicload.de. it’s a shame. germany is the 3rd bigest national market in the world. it’s a shame. i am sad. not much iTunes music store here. though i see more and more iPods when i am jogging… i am sad though.

  5. This is why iPod/iTMS does not deal with WMA. If it did, then the music industry could cut off the iTMS and sell through the other WMA on-line retailers, enforcing whatever pricing and DRM policies that appealed to them.

    Over time I suspect that the big labels will gradually lose power over the industry as individuals and independent labels take advantage of technology to bypass them completely. The independents could lower prices and still keep a bigger cut due to reductions in distribution costs, etc.

    Until the independents grow and/or Apple secures control over a large quantity of intellectual musical property (e.g., buys a big label), you won’t see WMA on iPod or iTMS. It would be suicide for Apple to do so.

  6. Alex, it’s easy to come up with different percentages for Apple’s market share. You can choose to use the percentage of unit song sales, percent of transactions, or percent of revenues, and for each of these you could use U.S. or world sales. You could use quarterly numbers, annual numbers, estimated next-year’s numbers, or somehow estimate what you think the current numbers are.

    That doesn’t mean that they’re just pulling the numbers out of their butts. It usually just means that they’re being sloppy about presenting ambiguous data. Probably due to space constraints, not some nefarious disinformation campaign.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.