The NPD Group-After 10 Years Apple Continues Music Download Dominance in the U.S.

PORT WASHINGTON, NEW YORK, April 16, 2013 – On April 28, 2013 Apple will celebrate the anniversary of its iTunes Store, and even after 10 years the company continues to lead the market in digital music downloads. According to the latest information from The NPD Group, a global information company, with a fourth quarter (Q4) 2012 unit share of the paid music download market reaching 63 percent, Apple dominated the market for paid music downloads, followed by AmazonMP3 at 22 percent. Eight out of ten digital music buyers downloaded their tracks and albums from Apple’s iTunes store in Q4 2012.

According to NPD’s “Annual Music Study 2012,” 44 million Americans bought at least one song track or album download last year. That number has remained relatively stable over the past three years, despite the rapid growth of Pandora and other music-streaming options. NPD estimates that average per-buyer spending on music downloads increased 6 percent, year over year, due largely to increases in music purchasing by teens, along with an increase in the number of consumers purchasing both single song tracks and full albums.

“Since the launch of Apple’s iTunes store, digital music downloads have become the dominant revenue source for the recorded music industry and iTunes continues to be the dominant retailer,” said Russ Crupnick, senior vice president of industry analysis at NPD. “There’s a belief that consumers don’t need to buy music because of streaming options, when in fact streamers are much more likely than the average consumer to buy music downloads.”

One third (38 percent) of U.S. consumers surveyed reported that it is still important to own music, and 30 percent believe that listening to albums is important. Among consumers who listened to music on Pandora and other free music-streaming services, 41 percent reported that owning music was important to them; in fact, many free streamers attributed buying more downloads to their discovery on a radio or via an on-demand service.

Data note: Information in this press release was derived from NPD’s “Annual Music Study 2012,” which is based on data from 5,400 consumer surveys, and NPD MusicWatch, which is based on 7,600 surveys. The “Annual Music Study” survey data was weighted to represent U.S. population of Internet users (age 13 and older), while MusicWatch is weighted to U.S. general population (age 13 and older). NPD’s reporting is based on an average comparison equivalency, in which single albums are equivalent to 10 music tracks. Digital music numbers reflect paid, permanent digital downloads only.   


Related Press Releases

2018 Baker’s Dozen +1: Stephen Baker’s Annual Holiday Expectations
2018 Baker’s Dozen +1: Stephen Baker’s Annual Holiday Expectations

Superior screens, advances in audio, and all things ‘smart’ will be hot this holiday. See more holiday consumer electronics predictions from NPD’s technology industry advisor, Stephen Baker.

Connected TV and Streaming Media Player Adoption Spurring Digital Video Purchases and Rentals, NPD Says
Connected TV and Streaming Media Player Adoption Spurring Digital Video Purchases and Rentals, NPD Says

As TV-connected devices become commonplace in U.S. homes more consumers are choosing to rent and purchase digital movies

Nearly Half of U.S. Smartphone Owners Report Shopping on Their Device
Nearly Half of U.S. Smartphone Owners Report Shopping on Their Device

The role of the consumer device is evolving, as content that was once the domain of the computer continues to migrate to smartphones. In fact, 45 percent of smartphone users now report they shop online via their device.

Traditional Retailers Are Gaining Ground in Online Sales of High Ticket Tech Items, Reports NPD’s Checkout
Traditional Retailers Are Gaining Ground in Online Sales of High Ticket Tech Items, Reports NPD’s Checkout

According to NPD’s Checkout, 29 percent of U.S. online CE dollar sales were made through traditional retailer websites for the 12 months ending June 2018. During this timeframe, they gained online dollar share primarily in high average sales price segments, spanning products such as TVs, PCs, tablets, and printers.

Want more?

Complete this form to hear from NPD.


Newsletter

Subscribe and get key market trends and insights relevant to your industry each month.

We will not sell your information. View privacy notice.

Follow Us

Privacy Notices.

© The NPD Group, Inc.