According to data from the NPD Group, after last year's increase in legal online music sales iTunes has become the number two music retailer in the country. During 2007 only Wal-Mart outperformed the online store.
Unfortunately the news wasn't as good for labels as it was for Apple. The increase download revenue didn't offset the continuing decline in CD sales. No doubt part of the problem is that downloads are typically sold one or two songs at a time, versus an entire CD. According to NPD, around a million people stopped buying CDs last year.













