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iTunes now the No. 2 music retailer in the US

post #1 of 51
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In addition to new notebooks on Tuesday, Apple announced that the latest market research data from NPD indicates that the iTunes Store recently surpassed Best Buy to become the number two music retailer in the US, behind only Wal-Mart.

The Cupertino-based company also said that there are now over 50 million iTunes Store customers who've combined to purchase over four billion songs, with an astounding 20 million songs sold on Christmas Day 2007 alone.

"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."

iTunes had held the title of the No. 3 US music retail since last June, when it cruised by online retailer Amazon.com, snagging over 10 percent of the nation's overall music sales.

Apple's rank as a US music retail has been rising steadily ever since November 2005 when it passed Tower Records, Sam Goody and Borders to crack the Top-10 for the first time.
post #2 of 51
Holy shayazat
post #3 of 51
Got any actual figures? How far ahead is Wal-Mart?
post #4 of 51
This can't be! The pundits keep saying iTunes is failing, iPod is failing, Apple is failing. HAHA
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post #5 of 51
iMac 20",Core2Duo 2.4GHz, 4GB RAM, ATI RADEON 2600Pro
iPod classic 80GB
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post #6 of 51
Apple never mentions it, but this is also a feather in the cap of the technologies that drive them iTunes Store and its massive data and user load: OS X Server, WebObjects, and Xserve.
post #7 of 51
I will be the first to admit that I am a total Apple freak. I drink the kool aid daily. However, the iTMS has been replaced by Amazon MP3 as my default music store. Not because it is "better", but it is a little cheaper and the songs are DRM-free. I'm hoping Apple sees that Amazon has a competative product and improves the iTMS to match. I'd love for Apple to take the #1 spot in the near future.
post #8 of 51
Congratulations Apple!
post #9 of 51
Quote:
Originally Posted by green-bee.salsa View Post

http://www.news.com/8301-10784_3-9733430-7.html (Q1 2007)

If Best Buy or Walmart's percentage hasn't move then iTS is very close to overtaking Walmart too, accordign to the graph.

Quote:
Originally Posted by Malligator View Post

I will be the first to admit that I am a total Apple freak. I drink the kool aid daily. However, the iTMS has been replaced by Amazon MP3 as my default music store. Not because it is "better", but it is a little cheaper and the songs are DRM-free. I'm hoping Apple sees that Amazon has a competative product and improves the iTMS to match. I'd love for Apple to take the #1 spot in the near future.

Amazon also has twice the bitrate for that lowered price. I think the reason they agreed to go with DRM-free audio with Amazon is to usurp iTS successful hold. Unfortunately, it's more than just the value, it's also about the ease of use.
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post #10 of 51
Quote:
Originally Posted by Malligator View Post

I will be the first to admit that I am a total Apple freak. I drink the kool aid daily. However, the iTMS has been replaced by Amazon MP3 as my default music store. Not because it is "better", but it is a little cheaper and the songs are DRM-free. I'm hoping Apple sees that Amazon has a competative product and improves the iTMS to match. I'd love for Apple to take the #1 spot in the near future.

I'm wondering just how that is actually affecting iTunes sales. not by much apparently.

Don't forget that Apple can't arbitrarily change their pricing. They have contracts, and so does Amazon, which is why Apple doesn't have all the DRM free songs Amazon does.
post #11 of 51
Quote:
Originally Posted by eAi View Post

Got any actual figures? How far ahead is Wal-Mart?

NPD is refusing to break out percentages this time around for whatever reason, but we're still trying to get it out of them. The belief -- given that Best Buy trailed Wal-Mart by only about 2 percentage points last June -- is that Apple (iTunes) is pretty close to becoming No. 1.

Best,

K
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post #12 of 51
Quote:
Originally Posted by eAi View Post

Got any actual figures? How far ahead is Wal-Mart?

This is all they are offering us right now:

Ranking below is reflective of the amount of music sold in the U.S., based on a 12-track CD equivalency for music track downloads.

2007
1. Wal-Mart
2. iTunes
3. Best Buy
4. Target
5. Amazon

Q4 2006 (for comparison -- NPD restated their data recently and does not cover full-year 2006):
1. Wal-Mart
2. Best Buy
3. Target
4. iTunes
5. Amazon
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post #13 of 51
Quote:
Originally Posted by solipsism View Post

Unfortunately, it's more than just the value, it's also about the ease of use.

More accurately:
It's more than just the cost, as the ease of use adds value
post #14 of 51
Apple should consider partnering up with Amazon. This way they can benefit from Amazon's distributions channels for Mac sales and maybe even get some sort of deal to allow people to buy books on their ipod/iphone like they would with the kindle. Amazon benefits by not having the ITMS to compete with as well as increased traffic from the Apple/itunes customers. Amazon unbox + ITMS + Apple TV and so on.
post #15 of 51
Quote:
Originally Posted by bloodstains View Post

More accurately:
It's more than just the cost, as the ease of use adds value

That is better. Thank you.
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post #16 of 51
Was that 4 billion songs in 2008.... or reached 4 billion songs in 2008?

You know there are idiots out there that don't know the difference......
post #17 of 51
Maybe its time the music industry target Wal-Mart for "too much power/control"
post #18 of 51
Quote:
Originally Posted by wbrasington View Post

Was that 4 billion songs in 2008.... or reached 4 billion songs in 2008?

You know there are idiots out there that don't know the difference......

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post #19 of 51
What really browns me off is the music label's decision to offer non-DRM'd tracks to Amazon, and elsewhere, but not to iTunes, even when Jobs offers them a higher price -- $1.29. Is it just that they're cheesed off, that Jobs forced their hands into dropping DRM? That Jobs kept his price at .99 cents when they wanted variable pricing? Do they want the kind of stunt pricing that record stores have been afflicted by? High price for the latest Britney or whoever, but very low for library? Do they want to restrict the availability of their library to emphasize the hit machine? Or has Jobs just proved right in so many negotiations that they're ticked off and want to punish them? And lastly, isn't there restraint of trade involved here? I mean, if they offer one set of terms to Amazon, and another to Apple, isn't that a cartel? An illegal combination? I mean, the music industry lost a big case, back in the day of CDs and physical stores, when it was revealed that they paid for all the music store ads, and then decided who got what and what price they had to sell it at. Right?

Got to admit, that's one set of negotiations I'd really like a peek at.

I agree about Amazon, and I love the availability of what tracks they have DRM-free. But if the labels started offering others the prime cut, but leaving Apple with the scrapings just to punish them, it's interesting that iTunes sales are still climbing, even with DRM.

Interesting, though: do they control the pricing of Wal-Mart's tracks? Usually, Wal-Mart controls their pricing, no? I mean, they're legendary for squeezing their sellers. I doubt if they do the labels any favors at all. So, uh, why should the number two retailer be any different? Huh?
post #20 of 51
Quote:
Originally Posted by Swift View Post

What really browns me off is the music label's decision to offer non-DRM'd tracks to Amazon, and elsewhere, but not to iTunes, even when Jobs offers them a higher price -- $1.29. Is it just that they're cheesed off, that Jobs forced their hands into dropping DRM? That Jobs kept his price at .99 cents when they wanted variable pricing? Do they want the kind of stunt pricing that record stores have been afflicted by? High price for the latest Britney or whoever, but very low for library? Do they want to restrict the availability of their library to emphasize the hit machine? Or has Jobs just proved right in so many negotiations that they're ticked off and want to punish them? And lastly, isn't there restraint of trade involved here? I mean, if they offer one set of terms to Amazon, and another to Apple, isn't that a cartel? An illegal combination? I mean, the music industry lost a big case, back in the day of CDs and physical stores, when it was revealed that they paid for all the music store ads, and then decided who got what and what price they had to sell it at. Right?

Got to admit, that's one set of negotiations I'd really like a peek at.

I agree about Amazon, and I love the availability of what tracks they have DRM-free. But if the labels started offering others the prime cut, but leaving Apple with the scrapings just to punish them, it's interesting that iTunes sales are still climbing, even with DRM.

Interesting, though: do they control the pricing of Wal-Mart's tracks? Usually, Wal-Mart controls their pricing, no? I mean, they're legendary for squeezing their sellers. I doubt if they do the labels any favors at all. So, uh, why should the number two retailer be any different? Huh?

It does give the appearance of having become personal between some major labels and Apple.
The attempt to stifle the iTunes store seems to be going poorly, despite attacks on
multiple fronts. One wonders how long the shareholders to whom label execs are
responsible will tolerate the loss of potential revenue from iTunes sales, due to
these apparently failing moves.

With regard to Walmart, maybe they belong to the same country club, political movement,
or maybe there are incriminating photos involved.
post #21 of 51
Quote:
Originally Posted by Kasper View Post

NPD is refusing to break out percentages this time around for whatever reason, but we're still trying to get it out of them. The belief -- given that Best Buy trailed Wal-Mart by only about 2 percentage points last June -- is that Apple (iTunes) is pretty close to becoming No. 1.

Best,

K

Yeah, plus if this is for 2007 as a whole on average and Apple's trend has been upward, the current flow of sales might be even closer or even with iTunes as number 1 today (and by a wide margin in a couple of years).
post #22 of 51
Quote:
Originally Posted by AppleInsider View Post

The Cupertino-based company also said that there are now over 50 million iTunes Store customers who've combined to purchase over four billion songs, with an astounding 20 million songs sold on Christmas Day 2007 alone.

That is 80 songs per nose on average or 8 CDs - having said that I already have purchased 25x that amount so I would really like to know what the median user purchases.
Plus : when you buy some compilations like the christmas oratorium : it consists of 50-70 individual tracks so the 4Bln is impressive but should be put into some perspective
post #23 of 51
Quote:
Originally Posted by Malligator View Post

I will be the first to admit that I am a total Apple freak. I drink the kool aid daily. However, the iTMS has been replaced by Amazon MP3 as my default music store. Not because it is "better", but it is a little cheaper and the songs are DRM-free. I'm hoping Apple sees that Amazon has a competative product and improves the iTMS to match. I'd love for Apple to take the #1 spot in the near future.


I thought DRM was placed on the music at the behest of the record companies licsensing the digital music to iTunes. They gave the DRM Free music to Amazon and a few others as a test case, and not to Apple because according to the Record Companies they needed a "Controlled"Case Study to compare.

Am I wrong? If not, don't fault Apple. Complain to the Record companies!

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post #24 of 51
I think you'll find, that because Wal-Mart has store fronts, and does sell CD's, the music companies get it from both ends. Something Apple can't or at least chooses not to do.

My guess is, if you look at downloads, we're getting close, but if you say "Music Sold" (which will come into play at some time (allowing Wal-Mart to stay at number one)) - you'll see Apple way behind Wal-mart.

When folks want to stay #1, they WILL play with the numbers / the wording to do so.

Based on this, Apple will NEVER over-take Wal-mart

Boy, CD jewel cases must be selling well, or they will once folks want to have a hard copy of all of this music
(another difference between iTunes and Wal-mart and others - is the real CD in the hands) Which is helping Amazon, where the quality of music is better, folks will start burning CD's again.


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post #25 of 51
Quote:
Originally Posted by Malligator View Post

I will be the first to admit that I am a total Apple freak. I drink the kool aid daily. However, the iTMS has been replaced by Amazon MP3 as my default music store. Not because it is "better", but it is a little cheaper and the songs are DRM-free. I'm hoping Apple sees that Amazon has a competative product and improves the iTMS to match. I'd love for Apple to take the #1 spot in the near future.

Actually I forgot about Amazon. I have an account and for music I always default over to iTunes but from now on, I will just pop in and see if I can get what I want on Amazon.
post #26 of 51
Quote:
Originally Posted by Malligator View Post

I will be the first to admit that I am a total Apple freak. I drink the kool aid daily. However, the iTMS has been replaced by Amazon MP3 as my default music store. Not because it is "better", but it is a little cheaper and the songs are DRM-free. I'm hoping Apple sees that Amazon has a competative product and improves the iTMS to match. I'd love for Apple to take the #1 spot in the near future.

It's cheaper now but just you wait. The record companies are doing this to create competition for Apple so latter they can raise the prices later on. The record executives said they wanted higher prices from Apple and Apple said no. Apple said they should have DRM free music and they said over my dead body, and then six months latter gave Amazon DRM free music for less money. You don't have to be a rocket scientist to see what going on hear. So keep on buying from Amazon but don't you dare bitch a couple of years from now when music prices are high again.
post #27 of 51
Quote:
Originally Posted by mretondo View Post

It's cheaper now but just you wait. The record companies are doing this to create competition for Apple so latter they can raise the prices later on. The record executives said they wanted higher prices from Apple and Apple said no. Apple said they should have DRM free music and they said over my dead body, and then six months latter gave Amazon DRM free music for less money. You don't have to be a rocket scientist to see what going on hear. So keep on buying from Amazon but don't you dare bitch a couple of years from now when music prices are high again.

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post #28 of 51
post #29 of 51
Quote:
Originally Posted by Malligator View Post

I will be the first to admit that I am a total Apple freak. I drink the kool aid daily. However, the iTMS has been replaced by Amazon MP3 as my default music store. Not because it is "better", but it is a little cheaper and the songs are DRM-free. I'm hoping Apple sees that Amazon has a competative product and improves the iTMS to match. I'd love for Apple to take the #1 spot in the near future.

I think the labels are trying to push people towards Amazon and any other competitor that's not Apple. In many ways, I don't blame them.
post #30 of 51
Quote:
Originally Posted by ncee View Post

My guess is, if you look at downloads, we're getting close, but if you say "Music Sold" (which will come into play at some time (allowing Wal-Mart to stay at number one)) - you'll see Apple way behind Wal-mart.

No - that is the whole point of this thread. Apple "total music sold" is more than best buy "total music sold" and almost equal to Wal-Mart "total music sold".

There is no way that Wal-Mart is the #1 downloaded music seller, this NPD thing is comparing the Apple downloads to the Wal-Mart CD sales, and they are almost equal.
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post #31 of 51
Quote:
Originally Posted by JeffDM View Post

I think the labels are trying to push people towards Amazon and any other competitor that's not Apple. In many ways, I don't blame them.

I don't blame their desire to want iTunes to less control, but it could be construed as anti-competitive.

Amazon is selling twice the bitrate at a lower cost and with DRM. Either the labels are getting less money and/or Amazon is losing money in an attempt to gain marketshare from iTunes. Regardless, they can't keep this up forever.
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post #32 of 51
Quote:
Originally Posted by JeffDM View Post

I think the labels are trying to push people towards Amazon and any other competitor that's not Apple. In many ways, I don't blame them.

You know, after reading this discussion I'm switching back to iTMS. It obvious that the record companies had an "anyone but Apple" policy when they made the Amazon deal. I don't blame Amazon for taking the deal which is why I don't mind buying from them. However, I'm peeved at the labels and won't agree to their tactics buy buying from Amazon. Once iTunes gets the same DRM-free deal then I'll let Amazon and iTMS compete for my money on a level playing field.
post #33 of 51
Quote:
Originally Posted by eAi View Post

Got any actual figures? How far ahead is Wal-Mart?

Way, way, way ahead. Wal-Mart and Target are the two largest sellers of music and DVDs in the world.

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post #34 of 51
Quote:
Originally Posted by Malligator View Post

I will be the first to admit that I am a total Apple freak. I drink the kool aid daily. However, the iTMS has been replaced by Amazon MP3 as my default music store. Not because it is "better", but it is a little cheaper and the songs are DRM-free. I'm hoping Apple sees that Amazon has a competative product and improves the iTMS to match. I'd love for Apple to take the #1 spot in the near future.

I also love me some Amazon, but they don't always have the same offerings as iTunes. Both services are very competitive.

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post #35 of 51
Quote:
Originally Posted by SpamSandwich View Post

Way, way, way ahead. Wal-Mart and Target are the two largest sellers of music and DVDs in the world.

http://en.wikipedia.org/wiki/ITunes_...and_milestones

On January 10, 2007 Apple announced that the iTunes Store had sold more than 2 billion songs, 50 million television episodes, and over 1.3 million feature-length films.[34]

On January 15, 2008 Apple announced that the iTunes Store had sold more than 4 billion songs.

===> approximately $2 billion in revenue from iTunes songs for Apple in 2007.

http://arstechnica.com/articles/cult...music-2007.ars



Looks to me like NPD is right, that iTunes represents about 20% of the music retailing business based on revenue, particularly since there was a huge drop since 2006.

http://www.musicrow.com/section/AS026/1/ARN008561

-> 500,396,000 total album sales in 2007 = somewhere between $5 billion and $10 billion in revenue total.
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post #36 of 51
Quote:
Originally Posted by e1618978 View Post

http://en.wikipedia.org/wiki/ITunes_...and_milestones

On January 10, 2007 Apple announced that the iTunes Store had sold more than 2 billion songs, 50 million television episodes, and over 1.3 million feature-length films.[34]

On January 15, 2008 Apple announced that the iTunes Store had sold more than 4 billion songs.

It's too bad that even with the increase in sales year-over-year they probably won't make 5 billion before the 5 year anniversary on n 28-APR-2003.
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post #37 of 51
I would wager that this news is more important for Apple than either the firmware 1.1.4 release or the notebook updates though probably less covered. Yet I doubt the omniscient analyst will understand the gravity that this potentially gives Apple.
post #38 of 51
Quote:
Originally Posted by SpamSandwich View Post

Way, way, way ahead. Wal-Mart and Target are the two largest sellers of music and DVDs in the world.

Perhaps I'm confused, but I thought the whole point of the thread was that iTunes is now number 2 retailer in the States in total music sales.. or are you speaking about worldwide sales?
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post #39 of 51
Quote:
Originally Posted by Malligator View Post

You know, after reading this discussion I'm switching back to iTMS. It obvious that the record companies had an "anyone but Apple" policy when they made the Amazon deal. I don't blame Amazon for taking the deal which is why I don't mind buying from them. However, I'm peeved at the labels and won't agree to their tactics buy buying from Amazon. Once iTunes gets the same DRM-free deal then I'll let Amazon and iTMS compete for my money on a level playing field.

You might want to consider that Amazon actually HAS to make a profit whereas iTunes is a driver for iPods and thus Apple can afford to basically break even (though I'm sure they're doing more than just breaking even). Unfortunately, Amazon has no hardware to push on their music purchasers. Given that fact, iTunes position is just as screwed up as Amazon's.

Personally, I say screw both of them. Buy CD's.
post #40 of 51
iTunes and soundtracks? What's the deal yo!?

Every time I search for a soundtrack on iTunes I cannot find it.
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