“Amazon.com’s MP3 service is growing but not at the expense of Apple’s iTunes, according to a report issued Tuesday by market researcher NPD Group,” Greg Sandoval reports for CNET.
“About 10 percent of the people who shopped at AmazonMP3 in February were previous Apple shoppers, NPD said,” Sandoval reports.
“Apple’s iTunes remains the No.1 digital music store. AmazonMP3, which launched last September, slipped past Wal-Mart to take over the No.2 spot in February when comparing the individual music tracks downloaded by consumers in the U.S., according to NPD,” Sandoval reports.
MacDailyNews Note: In terms of all music sales in the U.S. — not just online downloads, but including brick and mortar retail stores as well — NPD currently measures Apple’s total share of the music business at #1, with 19%. Wal-Mart is #2 (15%), Best Buy is #3 (13%), followed by Amazon and Target (6% each), FYE/Coconuts (4%), Borders (3%), Circuit City (3%), and Barnes & Noble (2%). Total physical music sales accounted for 70.9% and paid downloads comprised 29.1% of all the music sold in the U.S. in January. Apple’s iTunes Store currently offers over 6 million songs, has over 50 million customers, and has sold over 4 billion songs. Apple has approximately 80% market share of digital downloads.
“But Amazon has a long way to go, says NPD. Sales at iTunes are more than 10 times larger than Amazon’s, the research firm said,” Sandoval reports.
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Katie Marsal reports for AppleInsider, “The research firm’s initial consumer surveys found that 64 percent of the Amazon MP3 unit sales were traced to males compared to 44 percent for iTunes. Amazon MP3 showed the most strength among young adults aged 18 to 25, but only 3 percent of its customers were teens aged 13 to 17.”
“In contrast, the iTunes Music store sold nearly a fifth (18 percent) of its music to teens and also sports a healthy franchise in gift cards among that same demographic, while Amazon has a relatively small base of teen CD buyers,” Marsal reports.
“‘While it’s still very early in the game, there’s no evidence that Apple customers are deserting iTunes for a new alternative, either because of price or DRM restrictions,’ NPD analyst Russ Crupnick said. ‘Amazon may simply be opening new markets from their existing consumer base and introductory promotions,'” Marsal reports.
“NPD says its monthly consumer tracking measures unit sales of a-la-carte downloads from services like iTunes and Amazon MP3, but does not track subscription music downloads or revenue from eMusic and other subscription music services,” Marsal reports.
Full article here.