Apple's just confirmed the morning's news on them being the number one music retailer in the US. The stuff to take away: four billion songs sold, six million songs in the catalog, the most music sold in January and February out of any retailer. Hit the jump if you want to see Apple gloat for themselves.
CUPERTINO, California—April 3, 2008—AppleĀ® today announced that the iTunesĀ® Store (www.itunes.com) surpassed Wal-Mart to become the number one music retailer in the US, based on the latest data from the NPD Group*. With over 50 million customers, iTunes has sold over four billion songs and features the world's largest music catalog of over six million songs.
"We launched iTunes less than five years ago, and it has now become the number one music retailer in the world," said Eddy Cue, Apple's vice president of iTunes. "We are thrilled, and would like to thank all of our customers for helping us reach this incredible milestone."
*Based on data from market research firm the NPD Group's MusicWatch survey that captures consumer reported past week unit purchases and counts one CD representing 12 tracks, excluding wireless transactions. The iTunes Store became the largest music retailer in the US based on the amount of music sold during January and February 2008.
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.












Comments
That's great news. Apple was bound to get the top spot sooner or later. I mean they already have the top spot for MP3 player.
Maybe I should get a move on it and use the iTunes store now...
Yeah, but it's Apple so they suck no matter what. Let the slap-fighting continue.
Great. Now lower your prices, Apple.
I'm guilty of helping them out. I downloaded a song from the iTunes store once.
Is their stuff sill laden with DRM / tied to the iPod? I don't see why you wouldn't use Amazon.
@SchruteBuck: still
@Late_Night: Yeah, because price goes down with demand.
@SchruteBuck:
No. They have moved/moving away from DRM.
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.
Now say that in monotone. This will be the creed when Apple becomes a religion.
Hmm, no bias?....
So successful in fact that they feel the need to stick their hand in NYC's pocket because they had the audacity to use an Apple in an ad campaign.
It's basically the record companies who aren't letting iTunes sell competlely non-DRM stuff. And this isn't because they think that people will steal and pirate more.
This is because they want to erode iTunes' market share. They gave the non-DRM contracts to Aamazon to help them steal some market share away from iTunes, to lower the leverage Apple has over the music industry. All comes down to the content owners.
Confirmed? The press release basically says NPD Group's MusicWatch survey said they're #1, which we already read in their pr. The only thing they confirmed is they like it when people say they're #1.
I fail to recognize the significance of this "achievement" by iTunes. More people like to buy 1 good song for $1 from the comfort of their home instead of 1 good song + 14 crap songs for $10 at Wal-Mart. Wow.
Now how many people like to download 1 good song for free from a P2P service instead? When iTunes pulls in that crowd, I'll be impressed.
Awesome news for my portfolio!
Not so awesome news for the recording industry execs bent on destroying iTunes/Apple. I feel bad for their shareholders.
P.S. I think it's downhill from here for iTunes. The more DRM iTunes institutes, and the more consumers recognize the limitations of DRM, the more downloaders will look for alternatives. The concept of downloading your music is now mainstream. Now comes the desire to do so at a discount (i.e. free) and without the restraints of DRM.
Gentlemen, start your lawyers.
This is interesting considering that when apple computers started out, the already existing Apple record label allowed them to use the name Apple only after promising never to get into the music business.
@av8thor:
No. Why don't you go and actually read the myriad of articles that are out there; NYC isn't merely using an apple shaped logo in an ad campaign. They're trying to TM it.
As for iTMS becoming No. 1, uh, great, but when are we getting the entire collection in iTunes+ ? I don't know if it's the fault of Apple, the record companies (more likely the culprit) or the combination of the two, but as someone said, Amazon is currently a better place to buy music, if it's in their catalogue. My current music buying flow is: check iTMS if they have it in iTunes+, if not, go to Amazon and see if they have it (and buy if yes), and back to iTMS and really mull over whether or not I want to shell out $10 for a 128kbps DRMd AAC.
Often times, I decide no.
Let's work on it harder, Apple.
Stop complaing about the prices! If you can't afford apple the go away and buy a Dell.
@Samifumi:
I guess I don't understand how one can fail to recognize the significance of this. That is like saying, "well the Giants won the super bowl, but I don't understand why it is significant or even an achievement at all. Several other teams had more wins throughout the season, blah blah blah."
Are you saying it is not significant because they are only selling one song at a time? It's not significant because people still download illegally? It's not significant because they are kicking Amazon's ass, even with DRM still shackling a big portion of their music selection?
You're not significant...
@Dearhaw: I agree in that DRM-free tracks are the way to go. I also tend to think that most iTunes/iPod owners don't really care or know about DRM so long as their music is easily managed and enjoyed within the iPod/iTunes sphere of technology.
Wasn't this one of the main companies complaining ( or being mentioned in congress ) that the Russian download sites were taking all of their business? ;)
( liars )
@Samifumi:
DRM on iTunes tracks is not Apple's fault. It is the fault of the record companies. Apple was one of the first companies to call for DRM free tracks. Their contracts were already in place when Amazon made a deal, and eventually everything will be DRM free on iTunes (music that is).
@SchruteBuck: it's because of the records companies not them, they can't get new contracts.
@justinpe: Uh oh, the Apple fanboy rears his ugly head and subsequently comes the defense of all things Apple.
This event is just the day downloading a song became the preferred way to obtain a song over buying it in a brick and mortar store. Wow. We all knew this day was coming: it was the more efficient way to distribute copyrighted material. People prefer to download one song from an album for $1 over buying the song they really wanted for $10 on a CD (and maybe getting lucky there was another song they would like down the road).
So, iTunes now represents the king of the "legal" downloading crowd? Whoop. I'm more interested where it stands in relation to the P2P downloads over the same period of time. As more people open up to the concept of downloading their music, iTunes will only be a stop in the road for those people before they find a P2P service to download for free.
@Samifumi:
You still can't demonstrate why this is insignificant. If it really were not such a big deal, why are you taking the time to comment?
Anyone becoming number one at anything is an achievement. I got 1st place in my 5th grade spelling bee. However small this achievement may have been, it is still an achievement.
You also keep rambling about iTunes DRM, when you obviously have no clue about Apple's history (and future) here. They have been one of the biggest DRM-free proponents since the iTunes store was launched. Yet you say that iTunes is going to go down the tubes because they keep instituting more DRM on their tracks. This is clearly not the case.
This day was always going to come. What's interesting now is how the markets react - we are already seeing strong competitors like Amazon starting to emerge.
We all new that someone would eventually win the super bowl (happens every year). That does not make it insignificant. We all knew that the day would come when someone was declared the winner. I guess I don't understand what you are trying to say here.
@hu_hu_cool: amen on that. People always bitch no matter what. It ranges from "I would never spend 2k on a laptop" to "i wouldn't spend $1 on a single track". If your that cheap that you wont drop a single dollar for a track, you should be shot. If you cant afford it, fuck off and get a Dell.
@Sleeper_Service: Good point. Upcoming years will be key to how Amazon attacks.
@justinpe:
Actually, the reason iTunes is still DRM infested is because they cannot reach a commercial agreement with three out of the big four. Once they do so they'll drop the DRM but it'll be on the labels' terms, not Apples.
@Sleeper_Service:
?????????????????
Did I say something that suggests otherwise? Apples wants DRM-free tracks, it is the record labels fault, Apple already has contracts in place with all of the major studios.
Why are people paying $1 a shot to download iTunes? That's over $4billion Apple made last year from this segment alone.
Also, why was this story mentioned twice in the same day here?
Another big reason Amazon has DRM-free tracks is because of the variable pricing they use. It gives them a little more leverage with the record companies. Their cheapest tracks are 10 cents cheaper than apple's (89 cents) where their more expensive tracks (the most popular ones) are 2 bucks.
Apple refused to raise its prices and the record companies said, fine, here are some DRM tracks you can try to sell.
Also, all tracks from EMI are DRM-free on both iTunes and Amazon.
@justinpe: I like to debate and talk about all things in this industry. That is why I am taking the time to comment. If you don't like my comments, don't reply. Ignore them and keep on your merry way defending all things Apple.
Some people like to hang their hats on their past achievements (you and your 1st place in your 5th grade spelling bee, Al Bundy and his high school football days). Others like to look to the future, see what is beyond, and strive for more. I like to look at where things are going. And that is why I fail to see the "achievement." We knew it was coming a long time ago. So we are here. What's next? Being the defender of all things Apple, celebrate today. There are obstacles in the future you are just too busy toasting your Apple cohorts to recognize or discuss at this time.
The reason I mention DRM (and the big reason DRM is so opposed by Apple, but still part of iTunes) is because it will be part of the reason many people move away from iTunes. Steve Jobs never came out as an opponent to DRM for the sake of being a consumer advocate. He did so because he sees the writing on the wall. An iTunes without DRM is just a pit stop in the road for the downloading public. Stop giving him more credit as a radical or a consumer advocate than he deserves. He's just trying to keep Apple at the forefront of music distribution by removing potential complaints the service will see (and a reason many might move back to CDs for their copyright material distribution).
iTunes WITH DRM is just a pit stop in the road for the downloading consumer.
The reasons why Apple opposes DRM is irrelevant. The fact is that iTunes is moving away from DRM. Your previous post suggests that they are still adding more restrictions in regards to DRM. They are not. You are wrong. Get over it. Go achieve something. (BTW, I didn't win my 5th grade spelling bee, that was a hypethetical example).
@Gofastmazda: 1. because its currently the best service to download music and 2. because its news. If you have an issue, don't read the article.
@justinpe:
No, pay attention, it's for Apple to agree with the labels as to how they want to sell DRM free music. It's not the labels fault.
@justinpe: Actually, they have been more restrictive in the past few generations of iTunes. Your iPod/iPhone can only be synced with one computer's iTunes catalog. You cannot plug your iPod/iPhone into multiple Apple computers to share music without erasing the music selection currently on the device. That is more restrictive than the first iTunes and iPods I purchased back in 2003-4. And that is a form of DRM. And that is something the music industry has forced upon Apple, and they are doing so without much resistance.
iTunes/Apple are at the mercy of the music industry's threats of secondary liability lawsuits. They are just another tentacle the music industry controls at this time. There are very few things Apple fears more than being labeled a facilitator of infringement through technology (iPod/iPhone) development. Thus, you see those "don't steal music" messages on the wrapping around your iPod at the urging of the RIAA. Whatever the RIAA concocts next, Apple will quickly adopt despite Steve Jobs' public urges for otherwise.
And once the majority of people realize iTunes is just another RIAA crony, they'll move on.
WHEW! Now I can take some of the heat of people asking me why I hacked my iPhone when I should be in a 2-year contract with AT&T, now I can tell them the real reason why apple created the iPhone is so they can generate $$$from the itunes revenue! They can care less if it's not activated with AT&T, they end up making the miney back iwth iTunes!
It's a BIG conspiracy!
@Sleeper_Service:
I should have said:
It is the record labels fault that Apple can't distribute their music the way they want to. Youre right, it is just a matter of negotiating and compromising. I guess it would be just as easy to make the argument that it is Apple's fault for not compromising.
@Samifumi:
First, you can hook up your ipod to any computer and take all the DRM-free music you want or any other files for that matter (enable disc mode). Sure, it won't sync with more than one iTunes library, but why would you really need this unless you were trying to steal music? Nobody complains about this because it is really not a big deal. What other product or method would you suggest besides Apple's? Of course they can't break the law. Are you suggesting that all music should be free to everyone and everyone should be able to share it without consequence? This would result in no music or very very bad music which you probably listen to anyways, so i guess it wouldn't affect you?
Doom and gloom, doom and gloom, blu-ra... I mean Apple sucks... blah blah blah
I guess this proves that most of the people that bitch about apple DRM don't buy MP3 anyway since everyone that sells DRM free songs are way down on the list
I wonder if the 1 Billion songs I purchased off of iTunes in January may have skewed these numbers.
I mean you have to love there business model, the WIFI music store generates revenue for them 24h from iphone & ipod touch owners & is just getting bigger & bigger everyday, if they can implement the Wifi store to the other ipod lines, i'll say the sky is the limit for them
@Samifumi:
Your negativity is depressing and misplaced
This is one hell of an achievement, and the first time it's been done (obviously)
Despite all your bitching and moaning about Apple - I didn't see anyone else capable of stepping up to the plate to achieve this, certainly not the record companies, certainly not MS.
So yip de do to Amazon et al, but they wouldn't be doing dick right now if iTunes hadn't pioneered and turned the industry on it's head.
And in case you haven't noticed, Apple has the record industry by the short and curlies right now - they're the #1 outlet and that gives them one hell of a lot of leverage.
@Samifumi: I use my iPhone with 3 computers regularly and don't have to erase it each time I plug it into any of them. I also use Senuti to copy all the music I want off of my iPhone and onto my friends computers when I have something I want to share with them.
I dont get it...Who is buying this music from Itunes? I dont know anyone who has every bought any music from Apple. I have an Iphone and it's not even an option to buy DRM laced music from anyone, let alone Apple.
@btdown:
I guess you don't have any hip friends then...
Is it cramped in the closet in which you have resided for the last 7 years?
@btdown: Agreed, it's either Amazon, bittorrent, or a CD at a show for me.
That said, I would happily buy from iTunes when it's competitive with Amazon.