iTunes Continues To Top All Music Retailers

According to the latest MusicWatch consumer surveys from The NPD Group, iTunes remains the #1 music retailer in the U.S. in the first half of 2008. The rankings are based on purchases of CDs and a-la-carte digital music downloads. Following iTunes in the top spot are Wal-Mart at #2, Best Buy at #3, Amazon at #4 and Target at #5.

The data reflects the ongoing consumer shift from physical CDs to digital music, as iTunes maintained the leadership position that it achieved earlier this year. Amazon rose from fifth place to fourth primarily for two reasons, says NPD Group: online CD sales have seen less erosion than CD sales in retail stores, and Amazon launched its digital music store last year.

“We expect Apple will consolidate its lead in the retail music market, as CD sales continue to slow,” said Russ Crupnick, entertainment industry analyst for The NPD Group. “Amazon’s CD buyers tend to be older, so they haven’t abandoned the CD format to the extent seen in the average music buyer. Plus Amazon’s successful introduction of its digital download store will help the company improve its position in the future.”

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