iTunes is Number 2 Music Retailer in U.S.

[MacRumors]

http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)

Alongside MacBook (http://www.macrumors.com/2008/02/26/apple-releases-new-penryn-based-macbooks/) and MacBook Pro (http://www.macrumors.com/2008/02/26/apple-releases-penryn-based-macbook-pros-with-multitouch/) releases today, Apple announced (http://www.apple.com/pr/library/2008/02/26itunes.html) that iTunes had become the number 2 music retailer in the U.S., behind only Wal-Mart.
"We'd like to thank the over 50 million music lovers who have helped the iTunes Store reach this incredible milestone," said Eddy Cue, Apple's vice president of iTunes. "We continue to add great new features like iTunes Movie Rentals to give our customers even more reason to love iTunes."
The rankings are based on NPD Group's MusicWatch data. iTunes has sold over four billion songs, with 20 million songs sold on Christmas Day 2007 alone.


Article Link (http://www.macrumors.com/2008/02/26/itunes-is-number-2-music-retailer-in-u-s/)

[Markleshark]

This is great news for Apple, long may it continue.

[PlaceofDis]

wow, thats some growth! huge congrats to apple.

now only if they could get more labels on board for the drm free stuff, i'd buy all my music from them.

[iPoodOverZune]

Apple is in full speed now, heh! It could take Walmart with its horns. Watch yourself walmart.

[yoman]

How far behind is iTunes from Wal-Mart? Does anybody know?

[phytonix]

How is Amazon doing?

[apple101]

was itunes like 3 the last time they told us?? may be wrong

[840quadra]

*Based on data from market research firm the NPD Group’s MusicWatch survey that captures consumer reported past week unit purchases and counts one CD representing 12 tracks, excluding wireless transactions. The iTunes Music Store became the second-largest music retailer in the US after Wal-Mart, based on the amount of music sold during 2007.

I am curious if that also means that purchases from iPod Touches and iPhones are excluded from the total sales volume.

[ruckus]

was itunes like 3 the last time they told us?? may be wrong

Yeah it was 3, behind amazon I think.

Hopefully this will help the falling stock prices :P

[Stampyhead]

I absolutely ********** hate that store..

I absolutely agree with you. I refuse to go there unless I have to buy something in the middle of the night and there's nothing else open. I'm wondering if they are going to try more unethical tactics to get Apple of their tail. Remember when they threatened the movie studios to stop selling their DVD's if they signed up with the iTunes store? Any company with business practices like that deserves to rot in retail hell.

[AdeFowler]

Seems like only yesterday that Target was the target. iTunes really is an incredibly intuitive shopping experience that I can only see expanding into software etc.

[ltjca]

was itunes like 3 the last time they told us?? may be wrong

Yeah, i think so. Best buy or amazon was in front of Apple right?

[Doctor Q]

These were the pole positions as of last June (see Macrumors story (http://www.macrumors.com/2007/06/22/itunes-continues-its-climb-3rd-largest-music-retailer/)):1. Walmart (15.8%)
2. Best Buy (13.8%)
3. Apple iTunes (9.8%)
4. Amazon.com (6.7%)
5. Target (6.6%)

I also found an old press release (http://www.npd.com/press/releases/press_051121a.html) from 2005:1. Wal-Mart
2. Best Buy
3. Target
4. Amazon.com
5. FYE
6. Circuit City
7. Apple\iTunes
8. Tower Records
9. Sam Goody
10. Borders

[pounce]

i hope itunes growth will help to get more movie rental content available to us, since i have an apple tv and all.

[Jeff Meredith]

I, like obviously many others, love iTunes. Love the selection, convenience. Of course, I upgraded all of the music I can to iTunes Plus when available. But the majority of the music I buy from iTunes locks me further into iPods, we own three plus an Apple TV.

I have been a happy law abiding consumer purchasing music under the terms the music industry agreed to. I have never pirated anything.

But for the music industry to thrive and not become irrelevant, they need to level the playing field. If they unlock all of their music to AAC unprotected, then the MP3/AAC players, music phones,etc. will have to compete on price and features, not on vendor lock-in. All music that we have on our iTunes accounts should be immediately upgradeable to iTunes Plus. I would gladly pay the fee if it was reasonable.


Imagine if CDs locked you into only playing on Sony equipment. They tried that. Failed. Video Games lock you into one console and do fine but I don't think music can be that way.

Make Electronic music equivalent to CDs. Remove the DRM. Become relevant again.

[tk421]

Wow! That's amazing. I was impressed back when they announced they were 5th, and they've consistently gone up since then. I can even see them overtaking Wal-Mart. Who would have thought?

[Markleshark]

These were the pole positions as of last June (see Macrumors story (http://www.macrumors.com/2007/06/22/itunes-continues-its-climb-3rd-largest-music-retailer/)):1. Walmart (15.8%)
2. Best Buy (13.8%)
3. Apple iTunes (9.8%)
4. Amazon.com (6.7%)
5. Target (6.6%)

With those the last figures, Apple Can't be far behind Walmart now either, I'd like to see them number one by WWDC.

[Dimwhit]

These were the pole positions as of last June (see Macrumors story (http://www.macrumors.com/2007/06/22/itunes-continues-its-climb-3rd-largest-music-retailer/)):1. Walmart (15.8%)
2. Best Buy (13.8%)
3. Apple iTunes (9.8%)
4. Amazon.com (6.7%)
5. Target (6.6%)

Based on that, I've got to think that iTunes isn't far behind Walmart at all. Unless Best Buy tumbled and Walmart gained as much on them as Apple did.

edit: dang, Markleshark beat me to it... :)

[SiliconAddict]

*shrugs* I stopped going to iTMS now that Amazon has a somewhat competent selection that is DRM free at 256kb/s....Other then the store layout sucking like a black hole....

[Buschmaster]

This has already been a pretty big year for Apple. Tuesday is going to turn into Apple Day if this continues.

Great news continues to come our way!

[La Porta]

Excellent, for sure a step in the right direction.

[vendettabass]

didnt expect this!

[skeep5]

I've certainly done my part to make this happen! :D

[lazyrighteye]

Considering Wal-Mart's MP3 downloads are not Mac-compatible, iTunes is the #1 music retailer on the Mac OS!
And with Apple's market share on the rise...

If I were Wal-Mart *shudders*, I would make my services Mac-friendly. ASAP.

[zombitronic]

Does Wal-Mart still sell only censored music? I remember buying Mellow Gold from them way back in the '90s, only to discover that all the vulgar words were edited with that annoying reversal effect. If that's the case, who still buys music from them? Seems strange to support an artist if you're offended by their lyrics...

I know Apple does this in iTunes, but you usually have a choice. In some cases, I can understand this. You little kid likes Green Day, but you don't want them hearing all the F-bombs. That's fine, but it seems to me that the market for censored music is smaller than the market for uncensored music. Maybe I underestimate this.

[cxny]

iTunes is my all time favorite app - I can't believe that Wally is still ahead of you but it can't be for much longer. Remember the Long Tail effect: iTunes = 3.5 Million choices a typical Wally = maybe a couple of thousand? People Like Choice!

[jpine]

I absolutely agree with you. I refuse to go there unless I have to buy something in the middle of the night and there's nothing else open. I'm wondering if they are going to try more unethical tactics to get Apple of their tail. Remember when they threatened the movie studios to stop selling their DVD's if they signed up with the iTunes store? Any company with business practices like that deserves to rot in retail hell.

Not to mention turning a blind eye to 3rd world child labor, etc.

[coolfactor]

I, like obviously many others, love iTunes. Love the selection, convenience. Of course, I upgraded all of the music I can to iTunes Plus when available. But the majority of the music I buy from iTunes locks me further into iPods, we own three plus an Apple TV.

Question for you --- name one competing device to the iPod or Apple TV that you would buy if that perceived lock-in didn't exist? I say you'd still be buying the Apple products. You do, because they satisfy your needs just right.

[ideapower]

Considering Wal-Mart's MP3 downloads are not Mac-compatible, iTunes is the #1 music retailer on the Mac OS!

Walmart also sells these round things in square boxes called CDs, which are still Mac-compatible at last check.

I think you're missing what this story is about. Apple is now the #2 MUSIC RETAILER - not just digital music, but music - period.

[MacTheSpoon]

Wow. Very impressive! I never expected this back when iTMS debuted... I thought it would be successful, but this is just amazing.

[ideapower]

Question for you --- name one competing device to the iPod or Apple TV that you would buy if that perceived lock-in didn't exist? I say you'd still be buying the Apple products. You do, because they satisfy your needs just right.

But, as previously noted, if the DRM didn't exist, and all devices were capable of playing the content, better devices COULD exist, because there would be competition based on features and functionality... and price. As long as there is a proprietary lock-in, this can not be the case. And iPods will continue to dominate.

I can't imagine what can be better, at the moment (though I can imagine them being cheaper), but I couldn't imagine how my black&white-screen 4G could have been any better except for capacity, until they came out with other models.

[FX120]

Well the bigger you are the harder you fall...

I refuse to buy anything off of iTunes these days. In fact, I has been several years since I have bought anything from them.

Support your local record stores.

[Jeff Meredith]

Question for you --- name one competing device to the iPod or Apple TV that you would buy if that perceived lock-in didn't exist? I say you'd still be buying the Apple products. You do, because they satisfy your needs just right.


I agree whole-heartedly, that the iPods are superior, IMO but only my opinon. But as of now, I'm not even looking, I have far more invested in Music than the cost of my iPods (Touch being the latest).

If my music was unlocked I'd be able to test out the latest and greatest. Who knows, the brown Zune might be attractive. ;)

So in essence, Apple owns my music buying right now and I'm married to them, not that there's anything wrong with that and I'm happy with it. But this is a consequence of the Music Industry's decision.

If the music industry goes to Steve Jobs and says Break Down the Wall of DRM, what can he say. They'd be echoing what he said. If music buyers have an "Open" relationship with their music, things could get interesting.

[shadowfax]

Support your local record stores.

Support the past? Let's also resist globalization and modernization, they are screwing over all the people who can't adapt!

This is shocking, I can't believe Amazon's MP3 store hasn't taken serious ground with its DRM-free store!

[cxny]

but I couldn't imagine how my black&white-screen 4G could have been any better except for capacity, until they came out with other models.

Which is why Apple rules the consumer electronics field - they CAN imagine anything possible and make it elegant and simple.

[Dimwhit]

Well the bigger you are the harder you fall...

I refuse to buy anything off of iTunes these days. In fact, I has been several years since I have bought anything from them.

Support your local record stores.

What local record stores? Don't know about anyone else, but outside of the big chains, I don't even have one that I know of.

[hulugu]

*shrugs* I stopped going to iTMS now that Amazon has a somewhat competent selection that is DRM free at 256kb/s....Other then the store layout sucking like a black hole....

Amazon's site drives me nuts, I'm still not very impressed with either the UI or the selection. Furthermore, Amazon's getting DRM-free music from labels who are colluding in order to blunt iTunes' popularity. If the labels are giving DRM-free files to Amazon they should be doing the same for their iTunes customers. So, just for that, I'm not going to use iTunes.

Well the bigger you are the harder you fall...

I refuse to buy anything off of iTunes these days. In fact, I has been several years since I have bought anything from them.

Support your local record stores.

I do. But, sometimes I'm back to only wanting one song, or something my local record store doesn't have. I don't see the problem in buying some stuff from iTunes, some from eMusic, and some from the record store. Each has their distinct advantages.

I'll be glad when Apple is able (and willing) to strip the DRM from iTunes entirely.

[methodmano]

Anything to drive Wal-Mart out of business is OK with me. They're the bane of the U.S.

[SinfonianShrek]

Support your local record stores.

That's all well and good but the majority of the buyers on iTunes probably aren't there for a full album. Most likely they purchase a few single songs at a time. Unless my local store is going to start offering that, preferrably in a digital medium so I can save myself the clutter of unused CDs, tapes, vinyl, etc. I'm not buying.

Let's not mention the difference in available selection. Not only is there a huge selection of artists from the major labels there are also indie artists on iTunes that you can't find anywhere else unless you make it to one of their shows (look for Jak Locke as an example).

Then there's the shopping experience... I'm sure there are people who enjoy pouring over record after record after record in a store but that is the minority of music shoppers. Plus with brick-and-mortar stores there's the wonderful variable of human interaction. Every shopping experience I've had with a local record store has been ruined by the employees.

Local stores will always have a niche so long as real-media music is published. However, they will never be able to capture even the smallest percentage of the market in today's convenience and selection driven economy.

[Antares]

How do the NPD numbers work? Are they comparing a 10 song CD to a single song iTunes purchase? Or do they do some sort combination or division of songs?

Do the iTunes numbers include the free songs that they give out every Tuesday?

[e-coli]

Universal Music Group must just be kicking themselves in their own dumb asses.

Doug Morris must give the world's best BJ's to still be employed.

[Edmar]

Well the bigger you are the harder you fall...

I refuse to buy anything off of iTunes these days. In fact, I has been several years since I have bought anything from them.

Support your local record stores.

I would support record store only if I can find one, 1998 was the last time I went to one and it was pretty incovenient to get to it. I just bought a Killers single as I wrote this post. You get the point?

[twoodcc]

wow. good job Apple! let's hope this success continues

[Ugg]

Let's not mention the difference in available selection. Not only is there a huge selection of artists from the major labels there are also indie artists on iTunes that you can't find anywhere else unless you make it to one of their shows (look for Jak Locke as an example).



That's why the iTMS is the future. They support indies because it really doesn't cost anything to do so. There's no way that even the most successful local record store could begin to stock but a small percentage of indie music that exists.

Digital music downloads affords even the most obscure band an international exposure.


I hate shopping for music in a brick and mortar store. It's a much more enjoyable experience and less time consuming in my own home.

Long live iTMS!

[jhsfosho]

I'm not really surprised. I haven't bought music outside of iTMS for a long time. I've given more gift cards than CD's as gifts as well.

[Sweetbike40]

Wal-Mart? I wouldn't even think of buying music there? huh?

[MacinDoc]

How do the NPD numbers work? Are they comparing a 10 song CD to a single song iTunes purchase? Or do they do some sort combination or division of songs?

Do the iTunes numbers include the free songs that they give out every Tuesday?
Any physical CD, regardless of the number of tracks on it, is counted as 12 tracks.

[Antares]

I hate shopping for music in a brick and mortar store. It's a much more enjoyable experience and less time consuming in my own home.

For me, it's the opposite. I will only buy from iTunes if there is a specific song that I know that I want. It's a pain to browse. I think it's much simpler and pleasurable to go to a physical store (music store rather than mass market) to flip through cd's. That said, I buy most of my physical cd's online -> new or used. Albums on iTunes are too expensive for what you're getting (no physical liner notes, lower sound quality, occasional DRM, no automatic archive, etc.). With a physical copy, you get more for less. To be a good value and worthwhile, comparatively, a digital album would have to be priced $4.99...not $9.99.

Any physical CD, regardless of the number of tracks on it, is counted as 12 tracks.

Then does NPD combine 12 itunes songs sold to equal each cd sold at Best Buy, Walmart, Target etc...or vice versa?

[Diatribe]

Give it a year and they'll be first.

As soon as they offer Lossless I'll be buying exclusively at the iTS.

[ideapower]

Independent records stores are certainly not "the past". A great record store is an experience never to be replaced by a big-box retailer or an online source of music. A great record store is part of any city's cultural fiber, and are places not only to shop, but to discover and experience music. They're also a central part of any thriving local music scene.

If you say that there's not one near you, then you either live in the middle of nowhere, or you just haven't looked hard enough. Check these lists and directories of independent record stores:
http://www.cimsmusic.com/stores/index.php
http://www.recordlabelresource.com/list.php?catid=29
http://www.previewnewmusic.com/socialdistortion/#AL

[slu]

*shrugs* I stopped going to iTMS now that Amazon has a somewhat competent selection that is DRM free at 256kb/s....Other then the store layout sucking like a black hole....

This is exactly what I do. Amazon is now my go-to store, and I only use iTunes when Amazon's mp3 store does not have what I am looking for. the gap is getting smaller and smaller each time I am looking to buy something.

[pagansoul]

I find Amazon MP3 store a great place, if I know what I am looking for.

[Dimwhit]

Does Walmart even have a music download section? I thought they shut it down. I certainly don't see an obvious link to it on their website.

Edit: I realize we're not just talking digital downloads, by the way. Just wondering if they even do that anymore.

[PlaceofDis]

Does Walmart even have a music download section? I thought they shut it down. I certainly don't see an obvious link to it on their website.

Edit: I realize we're not just talking digital downloads, by the way. Just wondering if they even do that anymore.

they did indeed shut it down

[BongoBanger]

This is shocking, I can't believe Amazon's MP3 store hasn't taken serious ground with its DRM-free store!

In fairness it was only released in late September. I fancy Amazon to make good ground here once they get the site sorted out.

[hulugu]

What local record stores? Don't know about anyone else, but outside of the big chains, I don't even have one that I know of.

What blighted place to you live? ;)

[Pine-Tree]

This is exactly what I do. Amazon is now my go-to store, and I only use iTunes when Amazon's mp3 store does not have what I am looking for. the gap is getting smaller and smaller each time I am looking to buy something.

That's something I'd like to do as well but how is the overall experience buying music from Amazon?? I tried a while back when they started the service but once I found out that I had to download software and music downloads to that and these extra steps to get it to iTunes I just decided to stick with iTunes.

On topic with the thread I'm not surprised iTunes keeps going up the 'foodchain' of music as I've bought a ton of stuff from them, and some family members of mine have started using the service lately. I'm sure in no time Apple will be the biggest and surpass Wal-Mart.

[Pine-Tree]

What blighted place to you live? ;)

I laughed at that comment, but where I live we also don't have anymore 'local' stores as in independent shops that sell music. We used to but after iTunes and digital music the demand went down enough to shut down the small shops. You can still buy CD's at the regular retail chains like Best Buy, Wal-Mart, Target, etc...

I like your signature about Abe Lincoln by the way, nice.

[minik]

What's Wal-mart?

[Spievy]

If you think about it, this is an amazing acheivement for a computer company.

Keep it up :apple:

[Yvan256]

I know it's not up to Apple, but I'm pretty sure they are putting pressure on the labels for exactly this: no artificial country limitations!

Earth to music labels: why are you limiting sales of your own products? Especially when it's digital media which you have in unlimited quantities?

Why can't we buy songs from all over the planet? :rolleyes:

[ideapower]

=where I live we also don't have anymore 'local' stores as in independent shops that sell music

Your info says you're from Arizona. You're not anywhere near Phoenix, Tempe, or Tucson? According this directory link I posted earlier, there are several of these:
http://www.ziarecords.com/
http://www.stinkweeds.com/
http://www.hoodlumsmusic.com/

[Pine-Tree]

Your info says you're from Arizona. You're not anywhere near Phoenix, Tempe, or Tucson? According this directory link I posted earlier, there are several of these:
http://www.ziarecords.com/
http://www.stinkweeds.com/
http://www.hoodlumsmusic.com/

Yeah, I'm from Arizona, but I live in Yuma, which is pretty much all the way down next to California and Mexico. Phoenix is like 2 hr's away and Tempe is pretty much part of Phoenix (same area), Tucson is further away.

I don't really care that we don't have these shops as I buy all my music online anyways. What I do want is an Apple store though...have to go to Phoenix or San Diego every time I want to do that.

[hulugu]

I laughed at that comment, but where I live we also don't have anymore 'local' stores as in independent shops that sell music. We used to but after iTunes and digital music the demand went down enough to shut down the small shops. You can still buy CD's at the regular retail chains like Best Buy, Wal-Mart, Target, etc...

Yeah, I'm from Arizona, but I live in Yuma, which is pretty much all the way down next to California and Mexico. Phoenix is like 2 hr's away and Tempe is pretty much part of Phoenix (same area), Tucson is further away.

I don't really care that we don't have these shops as I buy all my music online anyways. What I do want is an Apple store though...have to go to Phoenix or San Diego every time I want to do that.

I always forget that Yuma is closer to San Diego and Phoenix than Tucson. There might be one music store in Yuma (D&H), but yeah it's tough to find small record stores. In Tucson, Zia is decent, and the Toxic Ranch and Twelve Tribes are fun stores to browse.

I like your signature about Abe Lincoln by the way, nice.

Thanks.

[Pine-Tree]

I always forget that Yuma is closer to San Diego and Phoenix than Tucson. There might be one music store in Yuma (D&H), but yeah it's tough to find small record stores. In Tucson, Zia is decent, and the Toxic Ranch and Twelve Tribes are fun stores to browse.


Used to go to D&H all the time, but stopped. Don't even know if it's still there anymore.

[hulugu]

Used to go to D&H all the time, but stopped. Don't even know if it's still there anymore.

Google thinks it is. Couldn't tell you.

I have to say, more OT, that one of the coolest records stores I've been to was in Milan. It had a glass floor and underneath were classic records, they also had a lot of vintage stuff on the walls and in a case beneath the staircase. It was really cool.

[stoutboy1]

Thats crazy, do that many people still buy cd's from Walmart? It just seems so 8 years ago.

[petercooper]

How utterly depressing is it that Wal*Mart is the #1 music retailer? I'm not against Wal*Mart as a store, but for music?

Sorry, I'll go back to watching High Fidelity now ;-)

[Spievy]

I never buy Music or Movies from Wal-Mart.

[hulugu]

How utterly depressing is it that Wal*Mart is the #1 music retailer? I'm not against Wal*Mart as a store, but for music?

Sorry, I'll go back to watching High Fidelity now ;-)

Yep, I think Rob Gordon would be appalled. ;)

[slu]

That's something I'd like to do as well but how is the overall experience buying music from Amazon?? I tried a while back when they started the service but once I found out that I had to download software and music downloads to that and these extra steps to get it to iTunes I just decided to stick with iTunes.

I think the experience is pretty good. Or at least I haven't had any trouble with it. You only need to download the software if you want to buy full albums. But the software is OK. Once you install it (and the install as was a breeze), you don't really notice it is even there. When you buy a song or record it launches and does its thing in the background and then automatically transfers the purchased songs to iTunes. I think it is quite easy and I recommend it to anyone who enjoys DRM-free music that is cheaper than iTunes.

[redfirebird08]

That's something I'd like to do as well but how is the overall experience buying music from Amazon?? I tried a while back when they started the service but once I found out that I had to download software and music downloads to that and these extra steps to get it to iTunes I just decided to stick with iTunes.

On topic with the thread I'm not surprised iTunes keeps going up the 'foodchain' of music as I've bought a ton of stuff from them, and some family members of mine have started using the service lately. I'm sure in no time Apple will be the biggest and surpass Wal-Mart.

You are mistaken about Amazon. The downloader is very easy to use. It automatically adds your songs to iTunes. The thing I was most impressed by about Amazon's service is that from day one they had a downloader available for Mac users. It's so easy to use. The site itself is not that easy to use if you go in there just browsing, but if you know what you are looking for it is a piece of cake. The prices are way better than iTunes, especially when you factor in that there is no sales tax and no DRM whatsoever at Amazon. In fact, this morning I bought a couple of James Taylor songs ("Carolina In My Mind" and "Fire and Rain"). :)