<img src="http://img255.imageshack.us/img255/6430/appleitunesyr9.png" align="right">Apple is now the #1 music retailer in the USA. The news was announced recently in an email that was sent out to a few Apple employees. A few months ago Apple breezed past Best Buy to secure the number #2 spot.
ARS Technica broke the story including a snapshot of the document. The iTunes store is ahead of the pack with 19 percent, Wal-Mart has 15 percent, and Best Buy has 13 percent. Amazon came in #4 trailing the pack with 6 percent.

The NPD Group, a leading consumer and retail information company, noticed a huge increase in digital downloads over the past several months while physical sales have slowed down.

A recent NPD press release stated

“NPD estimates that one million consumers dropped out of the CD buyer market in 2007, a flight led by younger consumers. In fact, 48 percent of U.S. teens did not purchase a single CD in 2007, compared to 38 percent in 2006.”

“The continued growth in legal download sites is encouraging, yet the industry struggles to improve the value of each digital customer,” said Russ Crupnick, entertainment industry analyst for The NPD Group. “With so many baby boomers and gen-Xers entering the market, there are certainly opportunities to sell more digital albums, promote older catalog titles, or create bundles that will raise revenues. In the near term that’s going to be the best means available to narrow the gap on dwindling CD revenues.”


Digital downloading has changed the way people purchase their music and videos looking at the statistics more people are opting for this service.

Apple has continued to improve iTunes making it even more attractive for its users. Not only do you have the option to purchase a variety of music and videos. Apple recently added movie rentals to iTunes including an attractive weekly 99 cent rental. iTunes has also improved the compatibility with Apple TV. It will be interesting to see whether Apple holds onto the #1 spot. I’m curious to see what other companies will offer to compete with Apple iTunes.

http://mac.blorge.com/2008/04/03/apple- ... n-the-usa/