Tuesday, August 18, 2009 at 10:59 AM | Posted by kazouz
Market research firm NPD reports that Apple’s iTunes was the top music retailer in the U.S. for the first half of 2009. The digital media store grabbed 25% of the entire market (including CDs and paid downloads), up from 21% in 2008 and 14% in 2007.
Digital music sales are growing fast with the share of CD sales shrinking rapidly. “CDs comprised 65 percent of all music sold in the first half of 2009 compared to paid digital downloads, which comprised 35 percent of music sales. By comparison, paid digital music downloads comprised just 20 percent of sales in 2007 – growing to 30 percent of the music market last year,” the report states.
Walmart is in second position with 14% sold through retail and online while Best Buy is ranked third. Walmart boasted 20% of CD music sales, followed by Best Buy at 16% and Target and Amazon tied at 10% each.
In the digital music arena, iTunes held a dominant 69% of the market, followed by Amazon at 8%. iTunes has been the leader in the digital music market since its launch in 2003.