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Amazon & Walmart Tie For #2 U.S. Music Retailer

image from blog.timesunion.com iTunes Still #1 As Digital Grows

iTunes continued to be the top retailer of music with 28% of all music purchased by U.S. , up 4% since Q1 2009 according to researcher NPD. Amazon gained 3% to tie Walmart's shrinking music department for second position at 12%

Sales of digital tracks and albums accounted for 40% overall music sales in the first quarter of 2010, up 5% from Q1 2009.* 

iTunes Flat For Last 4 Quarters

When reviewing sales of digital music separately from CDs, NPD found that iTunes’s share of the digital-music download market has remained essentially flat since Q1 2009 - growing just 1% to 70% of the digital music market last quarter. At the same time, AmazonMP3 grew by 4% to reach 12% while Amazon’s share of the CD market grew 2% to 11%.

"Amazon’s growth reflects a stronger position in both the CD and digital formats,” said Russ Crupnick, VP of NPD. “This dual-pronged approach of selling both digital music and CDs helps attract the most valuable and committed music buyer who prefers access to both formats.”

Walmart led U.S. CD purchases in Q1 2010 with a 17% share of the retail market. Best Buy followed Walmart with 14%, Amazon’s 11 percent share positioned them in third place.

* NPD’s data is based on a combined music-retailer ranking that reflects the combined sales of CDs and digital music downloads (i.e., 12 digital music track downloads are equivalent to one CD).

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