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Apple iTunes Still #1, but Amazon Gaining

NPD Group released the top leading music retailers for the first half of 2008. The list was based on purchases of CDs or digital music downloads.

1. iTunes
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)

Apple's iTunes remains number one amongst all retailers. Apple took the number one spot in April, overtaking Wal-Mart.

Amazon, however, saw a rise in ranking from #5 to #4, which NPD attributes to both strong CD sales as well as Amazon's introduction of their MP3 music store. The digital rights management (DRM) free solution provides iPod users a convenient and compatible alternative to Apple's iTunes.

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46 months ago
Amazon's catching up fast....
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46 months ago
WAL-MART will find its way back on top again ...
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46 months ago
I prefer iTunes over all the other services. Plus Apple is still implementing iTunes plus, so that will help with sales when implementation is complete.

Don
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46 months ago
The only problem is that all this proves is online sales are growing dramatically. iTunes has taken #1 and Amazon jumped a spot. The report doesn't say if iTunes is still expanding in growth, just that it is number one. If iTunes is still outgrowing Amazon 3 to 1 they will never catch up.
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46 months ago
Hell, I preferentially use Amazon. Better format by default, and sometimes cheaper. Occasionally Amazon has something Apple does not. It is not as slickly integrated as Apple, but Amazon is doing a credible job.
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46 months ago
glad to see amazon moving up. their mp3 daily deals are fantastic...and non-DRM is the way to go. competition for apple and itunes is a good thing for the consumer.
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46 months ago
While the iTunes store is a great experience, i actually cross shop (and prefer) amazon. Here's why:

1) mp3 encoded audio files are in much, much higher quality
2) sometimes a tad cheaper
3) not in some obscure ac3 format
4) (most importantly) no DRM or worrying about what is authorized for this and that

Its too bad the selection is not as plentiful as iTunes.

iTunes plus is a joke. If they were really serious, all songs would feature high quality and DRM-free format.
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46 months ago
I would like Amazon Music Store more (if I was allowed to shop there). That's based solely on the high quality, DRM-free mp3 files, which play really well in my car when I burn them to CD.
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46 months ago
Well...if Apple expands iTunes across the World at this rate..... I see everyone clamoring up!
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46 months ago
Without percentages, this top-5 list is pretty meaningless. Amazon could have stolen significant share from Apple, and we wouldn't know it. Apple's share could have increased, and Amazon's decreased, and we wouldn't know it. All this tells us for sure is something most of us already knew.

I gotta say, though, with millions of iPhones out there, it's hard to imagine Apple's share decreasing. Most likely Amazon's taking share from the other small fry. Just like Microsoft did when the Zune came out.
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