Apple overtakes Amazon for music sales

By   |  June 25, 2007

Apple’s digital music store iTunes is now the third-largest music retailer in the United States with 10 percent market share, overtaking Amazon.com in the first quarter, according to a survey released on Friday.

Reuters reports that the NPD Group report highlights the growing strength of digital music in the US market as physical sales of compact discs continue to slide.

Apple’s iTunes is third behind market leader Wal-Mart Stores with a 15.8 percent share, and Best Buy with a 13.8 percent share, according to the survey of 40 000 people aged 13 and older. Both of those retailers mostly sell music in the CD format.

Online store bestbuy.com has a 1.1 percent market share with sales of both CDs and digital music. Amazon.com dropped to fourth with a 6.7 percent share. Its sales increased but not as fast as rivals.

Amazon also sells music mainly in the CD format, but last month it started selling digital music without copy protection software such as that used by iTunes. NPD said the iTunes digital music store had benefited from sales of Apple’s iPod digital music player during the holiday season.

The vast majority of digital songs and albums bought on iTunes will only play on iPods, as well as the iTunes PC application.

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