subject: Itunes Leads Online Music Market With 66% Share Vs. Amazons 13% [print this page] iTunes takes the lead in online music market with 66.2 percent share. The competition might be too tight among these online music sellers but iTunes got the biggest percentage in the market share on the second half of 2010.
Taking the second spot is Amazon with 13.3 percent.
Apparently, theres a huge difference between the top two competing online music stores. From 63.2 percent last year, iTuness market share has augmented. Amazon had also increased its market share from 11 percent share in 2009 to 13.3 percent in 2010. The figures were announced by NPD Group, the research firm who checked the sales of the competing digital music stores.
United States Department of Justice was even reported to have probed Apple for accusations that iTunes had been suppressing recording artists and known record labels to strangle the competition against Amazon.
The intervening of the Department of Justice plus Amazons promotion called Daily Deal seemed to not affect iTunes increasing market share. Amazons Daily Deal gives discounts on albums of best selling artists. When iTunes released the Beatles entire catalogue ($1.62 per song, $17.99 per album), Amazon released Kid Rocks recent album priced at $3.99 on the same day the Fab Fours collection was launched.
However good this Daily Deal is, some music labels raise the probability that these discounts may cause the public to look down at the worth of their products. Another problem on the software-to-market strategy might have caused Amazon to keep up with iTunes climbing market share. Apple has iTunes software-iPod gadgets tie up while Amazons MP3 store only markets its products through emails and via Twitter. The latters Kindle e-book reader is being marketed greatly over TV commercials though.
Albums on iTunes are normally priced at $9.99 or $14.99 each although there are some with rates lower than the stated usual cost. On the other hand, with its Daily Deal, albums on Amazon are often available for $3.99. There could be quiet a difference in terms of album rates but not in terms of the pricing per single. Songs on Amazon are usually sold at 99 cents while singles on iTunes are sold in three prices 69 cents, 99 cents, or $1.62.
So its a battle between who sells cheaper? Not really. If what you want is being able to choose from a wide array of songs and albums, iTunes will give you that for it has a more extensive collection than Amazon. Primarily because it has started its digital music store in 2003, four years earlier than Amazons launch of its online music market in 2007.
Amazon has another setback in terms of maintaining its market weekly. It could only keep 6 to 10 percent of its market while iTunes maintains up to 90 percent. With the intense competition among digital music stores and how it collectively contributes to the growth of online music market, nationwide CD sales unfortunately slithered 20% for 2010.
As Apples hardware keep on making massive sales, its music software continue to thrive in the digital music market race. And its still taking the lead.
