Apple Maintains Digital Music Dominance, But Amazon Making Significant Gains

ItunesNPD has released its most recent report examining digital music downloads in the United States.

The research firm reports that Apple continues to hold a 63% share of the market down from 66% in 2010, with Amazon at 22%, up from 13% 3 years ago. Some 44 million Americans bought at least one song last year, with NPD saying that number has remained stable over the past three years.

“Since the launch of Apple’s iTunes store, digital music downloads have become the dominant revenue source for the recorded music industry and iTunes continues to be the dominant retailer,” said Russ Crupnick, senior vice president of industry analysis at NPD. “There’s a belief that consumers don’t need to buy music because of streaming options, when in fact streamers are much more likely than the average consumer to buy music downloads.”

However, only 38 percent of consumers said it was important to own music, while 41 percent of users of streaming music services like Pandora or Spotify said they had purchased music they discovered on such a service.

The relatively low number of consumers who find it important to own music may be part of the impetus to Apple's development of an 'iRadio' streaming music service. Apple is rumored to be pushing hard for a Summer 2013 launch.

Top Rated Comments

Small White Car Avatar
107 months ago
Amazon has alot of $5 sales and they use plain old MP3 which works on any player and not just iPod.
Wow, I thought this particular misinformation died around 2006 or so. There are still people pushing it?
Score: 11 Votes (Like | Disagree)
bbeagle Avatar
107 months ago
Since I have Spotify, I rarely buy music. But when I do, I tend to get it from Amazon for two reasons:
#1 - Prices are usually better
#2 - It's convenient to use their web Cloud Player to listen to the music at my job

Amazon has made it simple enough with their downloader to import the music into iTunes.

Score: 7 Votes (Like | Disagree)
Derekuda Avatar
107 months ago
I'm one of those people that made the switch. Amazon has alot of $5 sales and they use plain old MP3 which works on any player and not just iPod.
Score: 6 Votes (Like | Disagree)
Small White Car Avatar
107 months ago
It still ends up in iTunes so there is little difference in the end (except that it usually is less expensive).

One difference: It's mighty convenient to have stuff be part of your iTunes purchase history.

I love picking up an Apple device and being able to re-download something I bought on another without paying for iTunes match.

I'm not saying that's worth it to everyone, but that's one thing that keeps me coming back to the iTunes store.
Score: 4 Votes (Like | Disagree)
notjustjay Avatar
107 months ago
iTunes is a de facto choice in a lot of countries because services like Amazon mp3 simply don't exist in, say, Canada.
Score: 3 Votes (Like | Disagree)
No Pain No Gain Avatar
107 months ago
Not the old "AAC only works on iPods" argument again...

Products_that_support_AAC (https://en.wikipedia.org/wiki/Advanced_Audio_Coding#Products_that_support_AAC).

Or in other words - just about any device from a know company.
Score: 3 Votes (Like | Disagree)

Top Stories

16 inch macbook pro m2 render

When Can We Expect the Redesigned MacBook Pros Now?

Wednesday June 16, 2021 7:11 am PDT by
With no sign of redesigned MacBook Pro models at this year's WWDC, when can customers expect the much-anticipated new models to launch? A number of reports, including investor notes from Morgan Stanley and Wedbush analysts, claimed that new MacBook Pro models would be coming during this year's WWDC. This did not happen, much to the disappointment of MacBook Pro fans, who have been...
YouTube Picture in Picture Feature

YouTube Says iOS Picture-in-Picture Coming to All US Users

Friday June 18, 2021 9:41 am PDT by
After a long wait, YouTube for iOS is officially gaining picture-in-picture support, allowing all users, non-premium and premium subscribers, to close the YouTube app and continue watching their video in a small pop-up window. In a statement to MacRumors, YouTube says that picture-in-picture is currently rolling out to all premium subscribers on iOS and that a larger rollout to all US iOS...
2021 back t0 school

Apple Launches 2021 Back to School Promotion: Free AirPods With Eligible Mac or iPad Purchase

Thursday June 17, 2021 4:56 am PDT by
Apple today launched its seasonal back-to-school sale for the upcoming school year in the United States and Canada, offering students free AirPods alongside purchases of select Macs and iPad models. Similar to last year's promotion, this year's offer includes free AirPods alongside the purchase of a MacBook Air, MacBook Pro, the new 24-inch iMac, the Mac Pro, Mac mini, and the new M1-powered ...
applecare lower prices

Apple Lowers Prices of AppleCare+ Plans for M1 MacBook Air and MacBook Pro

Thursday June 17, 2021 7:33 am PDT by
Apple today lowered the prices of AppleCare+ plans for MacBook Air and 13-inch MacBook Pro models equipped with the M1 chip. Coverage offered by the plans, as well as accidental damage fees, appear to remain unchanged. In the United States, AppleCare+ for the MacBook Air now costs $199, down from $249. The new price applies to both M1 and Intel-based MacBook Air models, although Apple no...
maxresdefault

Video: 20 Annoyances Apple Fixed in iOS 15 and macOS Monterey

Friday June 18, 2021 11:36 am PDT by
With iOS 15 and macOS Monterey, Apple is adding several quality of life improvements, which are designed to address some of the complaints that people have had with these operating systems for years now. Subscribe to the MacRumors YouTube channel for more videos. In our latest YouTube video, we're highlighting some of our favorite "fix" features that address long-running problems in iOS and...
Top Stories 63 Feature

Top Stories: Beats Studio Buds Announced, Apple Watch Series 7 Rumors, and More

Saturday June 19, 2021 6:00 am PDT by
The Apple news cycle started to move beyond WWDC this week, but that doesn't mean there still wasn't a lot to talk about, led by the official debut of the much-leaked Beats Studio Buds that might give us a hint of what to expect for the second-generation AirPods Pro. With no hardware announcements at WWDC, we also took a look at when we might finally see the long-rumored redesigned MacBook...
m1 v intel thumb

Intel Processor Market Share May Fall to New Low Next Year Due to Apple Silicon

Friday June 18, 2021 2:06 am PDT by
Intel may see its market share fall to a new low next year, in large part thanks to Apple's decision to move away from using Intel processors in its Mac computers and instead use Apple silicon. Apple announced last year that it would embark on a two-year-long journey to transition all of its Mac computers, both desktops, and laptops, to use its own in-house processors. Apple is expected to...
space gray magic accessories trio

Apple Stops Selling Magic Accessories in Space Gray

Friday June 18, 2021 9:16 am PDT by
Apple this week stopped selling its Magic Keyboard with Numeric Keypad, Magic Mouse 2, and Magic Trackpad 2 accessories for the Mac in a Space Gray color, around three months after discontinuing the iMac Pro, which also came in Space Gray. Last month, Apple listed the Space Gray accessories as available while supplies last, and the company has now removed the product pages from its website...
maxresdefault

Apple CEO Tim Cook: Sideloading Apps Would 'Destroy the Security' of the iPhone

Wednesday June 16, 2021 10:49 am PDT by
Apple CEO Tim Cook this morning participated in a virtual interview at the VivaTech conference, which is described as Europe's biggest startup and tech event. Cook was interviewed by Guillaume Lacroix, CEO and founder of Brut, a media company that creates short-form video content. Much of the discussion centered on privacy, as it often does in interviews that Cook participates in. He...
3nm apple silicon feature

Apple Supplier TSMC Readies 3nm Chip Production for Second Half of 2022

Friday June 18, 2021 6:59 am PDT by
Apple supplier TSMC is preparing to produce 3nm chips in the second half of 2022, and in the coming months, the supplier will begin production of 4nm chips, according to a new report from DigiTimes. Apple had previously booked the initial capacity of TSMC's 4nm chip production for future Macs and more recently ordered TSMC to begin production of the A15 chip for the upcoming iPhone 13,...