Around April 2008 Apple Inc. (NASDAQ:AAPL) passed Wal-Mart as the #1 music retailer in the U.S. Now Apple controls 25% of all music sales through iTunes. Compact discs have 65% of all music sales. The remain 10% is other digital music sources.
In the first half of 2009, Apple had a 69% share of all digital music sales and Amazon.com had about 8%. “The growth of legal digital music downloads, and Apple’s success in holding that market, has increased iTunes’s overall strength in the retail music category,” stated NPD Group entertainment industry analyst Russ Crupnick.
In terms of the CD market share, Wal-Mart has about 20% of the total market while Amazon.com and Target has about 10% each. Best Buy has 16% of the CD market share.
“Many people are surprised that the CD is still the dominant music delivery format, given the attention to digital music and the shrinking retail footprint for physical products,” added Crupnick. “But with digital music sales growing at 15 to 20 percent, and CDs falling by an equal proportion, digital music sales will nearly equal CD sales by the end of 2010.”