iTunes comtinues to lead US music retailers, says NPD

Andre Yoskowitz
6 Aug 2008 15:27

According to the newly released MusicWatch consumer survey, commissioned by the NPD Group, Apple's iTunes platform is once again leading music retailers in the United States, at least for the first 6 months of 2008.
The report is based on individual digital music downloads and physical CD purchases.
Following (not so) closely are Wal-Mart, Best Buy, Amazon and Target rounding out the top 5.
The data shows the consumers continue to shift away from physical CD sales in large numbers and are moving largely to digital music. Amazon was the only company on the list to move, moving up one space and pushing Target back a space. That move can be attributed to the opening of the DRM-free Amazon MP3 store late last year.
“We expect Apple will consolidate its lead in the retail music market, as CD sales continue to slow,”
said Russ Crupnick of The NPD Group. “Amazon’s CD buyers tend to be older, so they haven’t abandoned the CD format to the extent seen in the average music buyer. Plus Amazon’s successful introduction of its digital download store will help the company improve its position in the future.”
US consumers aged 13 or older were surveyed for the report and NPD notes that they "use an equivalency of 12 single-track downloads per CD, for retailers who sell digital music as single tracks. In addition, NPD "only tracks digital music sold by the song or album, not music purchased under subscription from services like eMusic, or subscription revenues from Rhapsody and Napster."

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