NPD: Apple iTunes Store maintains leadership as #1 U.S. music retailer

According to the latest MusicWatch consumer surveys from The NPD Group, the five leading music retailers in the U.S. for the first half of 2008 (based on purchases of CDs and a-la-carte digital music downloads) ranked as follows:

1. Apple iTunes Store
2. Wal-Mart (Walmart, Walmart.com, Walmart Music Downloads)
3. Best Buy (Best Buy, Bestbuy.com, Best Buy Digital Music Store)
4. Amazon (Amazon.com, AmazonMP3.com)
5. Target (Target and Target.com)

NPD’s data reflects the ongoing consumer shift from physical CDs to digital music, as iTunes maintained their leadership position reached earlier this year. Amazon rose from fifth place to fourth primarily for two reasons: first, online CD sales have seen less erosion than CD sales at brick-and-mortar stores; and second, Amazon launched its digital music store, Amazon.mp3, last year.

“We expect Apple will consolidate its lead in the retail music market, as CD sales continue to slow,” said Russ Crupnick, entertainment industry analyst for The NPD Group, in a statement. “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.”

Source: The NPD Group, Inc.

MacDailyNews Note:
The Apple iTunes Store Milestones:
• June 19, 2008: 5 billion songs sold.
• February 26, 2008: 4 billion songs sold.
• July 31, 2007: 3 billion songs sold.
• April 09, 2007: 2.5 billion songs sold.
• January 09, 2007: 2 billion songs sold.
• February 23, 2006: 1 billion songs sold.
• February 7, 2006: 950 million songs sold.
• January 9, 2006: 850 million songs sold.
• October 25, 2005: Available in Australia.
• August 4, 2005: Available in Japan.
• July 17, 2005: 500 million songs sold.
• May 10, 2005: 400 million songs sold. Available in Denmark, Norway, Sweden and Switzerland.
• January 24, 2005: 250 million songs sold.
• December 16, 2004: 200 million songs sold.
• December 2, 2004: Available in Canada.
• October 26, 2004: Available in the European Union.
• October 14, 2004: 150 million songs sold.
• July 12, 2004: 100 million songs sold.
• June 15, 2004: Available in UK France Germany.
• April 28, 2004: 70 million songs sold.
• March 15, 2004: 50 million songs sold.
• December 15, 2003: 25 million songs sold.
• October 16, 2003: Available for windows. 13 million songs sold.
• September 8, 2003: 10 million songs sold.
• June 23, 2003: 5 million songs sold.
• May 14, 2003: 2 million songs sold.
• May 5, 2003: One million songs sold.
• April 28, 2003: Launched in United States.

21 Comments

  1. McDonald’s as we know it today opened in 1955 . . . 53 years ago . . .

    iTunes started selling songs in 2003 . . . 5 years ago . . .

    I couldn’t find a timeline to see when McDonald’s hit milestones, does anyone know when McDonald’s hit their first 5 billion??

  2. • June 19, 2008: 5 billion songs sold.
    • February 26, 2008: 4 billion songs sold.
    That’s ≈ 1 billion in ≈ 4 months.

    Like 3 Billion/year. Amazing!

    Hypothetically, if Apple makes $.10/song, that’s $300 million per year.

    Pretty astounding!!!

  3. June 15, 2004: Available in UK France Germany.

    October 26, 2004: Available in the European Union.

    Err… all of the above are in the European Union, so it would be correct to say: “<i>October 26, 2004: Available in the rest of the European Union. And even then, MDN you didn’t do your research. There’s no iTunes store in Bulgaria, Estonia, Latvia, Lithuania or Sweden.

    Sorry, fact-checking is a crucial part of journalism.

  4. Ha! Correction… There is a store in Sweden! My mistake. See what I mean about fact-checking? However, the remaining four EU countries are without stores.

    Having said that, why oh why the EU can’t have one store beats me <rhetorical>

  5. @Cubert: Great point.

    Apparently as of today, the guy who’s been responsible for this incredible growth, Eddy Cue, has been placed over MobileMe and the App Store, along with continuing to oversee the iTunes Store. He’ll report directly to Jobs himself.

    If he can do for MobileMe and the App Store what he’s been doing all along for the iTunes Store, we can look forward to Apple kicking ass and taking names for a long time to come.

    Make it so.

    Peace.
    Olmecmystic ” width=”19″ height=”19″ alt=”cool smile” style=”border:0;” />

  6. Walmart, Best Buy, Amazon, and Target are only going to see the ass end of Apple through the dust as Apple pulls away.

    At least Target and Amazon are respectable companies.

    The rest can nose Apple’s ass.

  7. 5 billion songs sold. That’s nothing. McDonalds has served more than 99 billion hamburgers (or reasonable facsimiles).

    Well, McD’s has kind of a lengthy head start.

    We’ll check back in 2056 to see how the numbers compare. Assuming McD’s hasn’t been outlawed or blubbered off their customers by then….

    Hamburgers are the new cigarette. The witch hunt has just begun.

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