Only Wal-Mart sells more music than iTunes

Apple continues to tighten its grip on music sales as iTunes has become the second largest U.S. music retailer.

A report released by tracking company NPD Group, showed that Apple now has more than 50 million customers and sold more than 4 billion songs last year.

Apple's digital music store jumped past Best Buy to capture the No.2 spot behind Wal-Mart stores. Apple is on a roll. It was only last June that the company overtook Amazon as the nation's third-largest retailer.

How long before the company can surpass Wal-Mart to become top dog in music sales?

The good news for the overall music industry is that the amount of music being acquired rose 6 percent, according to NPD.

The bad news is that spending rates dropped by 10 percent due to falling CD sales. Spending among Internet users fell from about $44 per capita to $40. And nearly half of all U.S. teens (48 percent) did not purchase a CD last year, NPD said. That is up from 2006, when about 38 percent of teens made no CD purchases.

NPD estimated that the music industry lost about 1 million CD-buying customers last year.

[fredtheviking]

Market has punished the Music Industry

DRM and resistance to technology and progress has punished the Music Industry. Soon CD may become a novelity... which is probably better for environment. Oh well, I wondering how things would have been different if the music industry had tried to capatized on the internet as a medium for disturbuting music early on. Instead of trying to hamstring or stop it all together.

[john55440]

Amazon.com : Best Legal Source of Music

Amazon.com is the best legal source of music, offering customers the choice of either CDs or DRM-free MP3s.

I prefer CDs, because they offer superior sound quality.

[the Otter]

AAC is a great middle ground.

I?d rather have the higher quality of MP4 (read: AAC) than the
DRM-free MP3. Admittedly, Apple hasn?t upgraded their FairPlay
tracks to 256kbps yet, so Amazon?s got them there, but seriously?
I?ll deal with the DRM, if it means better sound. I have no desire to
own a non-iPod digital music player, anyway.

(Of course, CDs always blow MP3 and MP4 away?especially if you
buy them used, which direct download doesn?t allow for.)

[kelmon]

Waiting on International

Unfortunately this is only true in the US since Amazon hasn't
launched the download service in its international locations.
Personally, I don't see why I can't buy from the US store anyway
since I can buy my CDs from them, if I wanted to.

With respect to downloads vs. CDs, I'm damned if I can tell the
difference.

[aka_tripleB]

It'll take awhile before iTunes will overtake Wal-Mart

Seems how Wal-Mart is $0.05 cheaper.