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Apple's iTunes rules digital music market with 63% share

post #1 of 24
Thread Starter 
Apple's iTunes Store remains the driving force behind digital music, with 63 percent of digital downloads running through Apple, according to new figures out from the NPD Group.

iTunes 11


NPD's "Annual Music Study 2012" looked at data from more than 12,000 consumer surveys in order to gauge consumer opinions and habits in music buying. The study found that Apple's iTunes held 63 percent of the market for paid music downloads in the fourth quarter of 2012, followed by AmazonMP3 at 22 percent. Eighty percent of digital music buyers downloaded their music through Apple's iTunes last quarter, the study said.

NPD found that 44 million Americans bought at least one song track or album download last year. Per-buyer spending on music downloads was up six percent year-over-year, thanks to teens buying more tracks.

Nearly 40 percent of U.S. consumers still believe it's important to own their music, NPD's report said, with 30 percent believing that listening to whole albums is important. The belief in the importance of owning music is actually somewhat stronger among consumers that listen to Pandora and other free streaming services. Those listeners, NPD found, were more likely to buy downloads of things they'd heard on a radio or on-demand service.

What began as a simple, legal music repository for owners of Apple's iPod 10 years ago has grown into a powerful force in the music industry. In 2012, iTunes and other download providers boosted music industry revenue for the first time since the Napster era. Worldwide, digital music revenues are at $5.6 billion, and Apple's iTunes accounts for a large portion of that. The service recently sold its 25 billionth song, with 15 billion of those sales coming in the last three years.
post #2 of 24
I think, that was my fault.

I've spent a shitload through iTunes recently...
Apple managed the astonishing feat of getting the equivalent of a personal computer into the hands of everybody from eight to eighty year olds, and did so while providing absolutely no instructions...
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Apple managed the astonishing feat of getting the equivalent of a personal computer into the hands of everybody from eight to eighty year olds, and did so while providing absolutely no instructions...
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post #3 of 24
So apple went from 80% to 63%? Did I read that right?
post #4 of 24
Quote:
Originally Posted by Cash907 View Post

So apple went from 80% to 63%? Did I read that right?

No, the 63% is apple's piece of total # of paid song downloads, while 80% is apple's piece of the total downloading userbase. So, 63% is a number-of-songs thing, and 80% is a number-of-people thing.
post #5 of 24
Nice to read, but being an audiophile I really want Apple to start selling/streaming HD 24 bit/192 kHz tracks and albums sooner rather than later. Together with Ultra HD video streaming/downloading they'd have the market for high quality media (to match their quality hardware) covered!
post #6 of 24
Am I the only one who's impressed by Amazons growth?
iPad, Macbook Pro, iPhone, heck I even have iLife! :-)
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iPad, Macbook Pro, iPhone, heck I even have iLife! :-)
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post #7 of 24
Quote:
Originally Posted by jonyo View Post

No, the 63% is apple's piece of total # of paid song downloads, while 80% is apple's piece of the total downloading userbase. So, 63% is a number-of-songs thing, and 80% is a number-of-people thing.
Ah ok thanks.
post #8 of 24
Quote:
Originally Posted by saarek View Post

Am I the only one who's impressed by Amazons growth?

 

Yup!

 

I still wish Apple would give the option to download an MP3 file. Any song I buy gets converted to that anyways so they aren't really forcing their format on me. Sometimes I'd buy from Amazon just so I could get the mp3 format because I'm too lazy to convert it. 

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Mac Mini (Mid 2011) 2.5 GHz Core i5

120 GB SSD/500 GB HD/8 GB RAM

AMD Radeon HD 6630M 256 MB

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post #9 of 24
Quote:
Originally Posted by 1983 View Post

Nice to read, but being an audiophile I really want Apple to start selling/streaming HD 24 bit/192 kHz tracks and albums sooner rather than later. Together with Ultra HD video streaming/downloading they'd have the market for high quality media (to match their quality hardware) covered!

I totally agree. I'm salivating at the thought of 24 bit/192 kHz music. Long over due. 1cool.gif

post #10 of 24
Quote:
Originally Posted by saarek View Post

Am I the only one who's impressed by Amazons growth?

Yes

post #11 of 24
Quote:
Originally Posted by Chandra69 View Post

Yes

Now that's funny! :)

post #12 of 24

Just like Stevo said, Sometimes "easy," trumps "free!"

post #13 of 24

And people were wondering why Apple is making the "outrageous" demands from record labels as far as pricing for the rumored "iRadio".

 

When you're responsible for the majority of the revenue then you're entitled to "discounts" that others might not get. This is the way it's always been in business - the more you buy the better the price.

post #14 of 24
Would be great if we could get an accurate, unbiased 3rd party study that really reflected markets. NPD, IDC, and Gartner all skew numbers according to their biggest "clients".

I forgot which (probably IDC), but one of them for years touted Microsoft's numbers and it turned out Microsoft was their largest client. Usually you can go back a few years and see predictions of marketshare numbers... The company with the largest share is usually a big spender.

Just like with Greenpeace, Apple doesn't pander to these groups, so their rankings are always under-estimated and under-rated.
Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
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Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
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post #15 of 24
Quote:
Originally Posted by saarek View Post

Am I the only one who's impressed by Amazons growth?

Conveniently, the article fails to indicate that Amazon's growth went UP, while Apple's went DOWN.  Typical of AI.

post #16 of 24
Their app revenue beats everyone's. their iTube sales beats everyone's. they command the highest profits off the high end smartphones, their iPad sales are consuming everyone's pc sales & yet, this stock dropped 265 points. The markets just don't make sense. Amazon gives away it pads & doesn't make a profit. Goog gives away its phone platform and has been out performing appl. Go figure!
post #17 of 24
Quote:
Originally Posted by 1983 View Post

Nice to read, but being an audiophile I really want Apple to start selling/streaming HD 24 bit/192 kHz tracks and albums sooner rather than later. Together with Ultra HD video streaming/downloading they'd have the market for high quality media (to match their quality hardware) covered!

 

 

I would strongly urge you, and any other audiophiles you know, to sit in on a recording session sometime. Unless you're listening to Telarc or Deutsche Grammaphon, I think you may find that you are obsessing over minutia the artist and engineer did not.

 

The issue of data compression is a separate discussion, but I am curious what you expect to gain from a 192KHz recording that you don't get at 44.1?

post #18 of 24
Quote:
Originally Posted by macxpress View Post

 

I still wish Apple would give the option to download an MP3 file. Any song I buy gets converted to that anyways so they aren't really forcing their format on me. Sometimes I'd buy from Amazon just so I could get the mp3 format because I'm too lazy to convert it. 

 

What's the advantage of mp3 in your application?

 

I know there are all kinds of factors in addition to ultimate fidelity affecting most people's music storage preferences, but you might be interested to know that I accidentally disproved my own erroneous claims about mp3 vs. AAC sound quality in a comparison test.

 

At the time, Apple was selling tracks encoded at 128K. I set up a double-blind comparison to demonstrate how much better an mp3 encoded at 256K would sound. To my amazement, I was wrong. The frequency spectrum of the 128K AAC was actually better than the mp3 at 256K (less deviation from the original wav file), and every single one of the five listeners found the 128K AAC subjectively better.

 

Now that iTunes offers AAC at 256K, I've surrendered my mp3 bias and adopted AAC for my compressed media. Unlike 10 years ago, I no longer encounter situations in which it's not a supported format.

post #19 of 24
Quote:
Originally Posted by 1983 View Post

Nice to read, but being an audiophile...
I can't stand audiophiles.

You know what happens to you guys in jail, don't you?
Apple managed the astonishing feat of getting the equivalent of a personal computer into the hands of everybody from eight to eighty year olds, and did so while providing absolutely no instructions...
Reply
Apple managed the astonishing feat of getting the equivalent of a personal computer into the hands of everybody from eight to eighty year olds, and did so while providing absolutely no instructions...
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post #20 of 24

Who's making more money?

post #21 of 24
Originally Posted by GTR View Post
You know what happens to you guys in jail, don't you?

 

We're forced to listen to symphonies in 64k using Creative Zen earbuds?

Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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Originally Posted by Marvin

The only thing more insecure than Android’s OS is its userbase.
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post #22 of 24
Quote:
Originally Posted by christopher126 View Post

Just like Stevo said, Sometimes "easy," trumps "free!"

Especially when free is no longer a viable option.
"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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"Few things are harder to put up with than the annoyance of a good example" Mark Twain
"Just because something is deemed the law doesn't make it just" - SolipsismX
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post #23 of 24
This report is a relief. I was a very strong opponent to MP3 before iTunes and all the music software at that time was crap, especially Music Match (anyone still remember that?). I have since transferred all my CDs into AAC using iTunes and even given up all my physical CDs to a friend to have an all-digital, disc-free music life. I live in Hong Kong and although it's a small market, things spread very fast here and it's easy to feel the trend esp for CE gadgets. The very bad news is, a year ago on the metro trains, you'd see 7 out of 10 people holding an iPhone. Today that ratio belongs to Samsung, giving a strong feeling that Apple is somewhat OUT. Of course if people are no longer using iPhone then iTunes would also fall, and my entire life's music collection would be under serious threat. And there is a good reason for my worries - Tim Cook is simply not Steve Jobs and he has not shown any leadership in coming up with innovative products. That means if this continues for a few more years Apple would easily become the next Polaroid as history has proved again and again that companies fall a hard fall once their innovations cease. Maybe Apple should start looking for a truly able replacement before that day arrives!
post #24 of 24
Quote:
Originally Posted by Cash907 View Post


Ah ok thanks.

i m confused whether it is growth or downfall

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