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iTunes Stays Strong As Amazon & Rhapsody Gain

The fifth IPSOS TEMPO annual Digital Music Brandscape study showed: Rhapsody_2

  • iTunes continued to grow in terms of awareness, usage, familiarity, and ‘best brand’ extensions.Applelogo
  • Amazon had a strong first year, with initial awareness, usage, favorability and ‘best brand’ ratings comparable to any of the top brands after iTunes. Moreover, Amazon actually matched iTunes in user satisfaction.
  • In perhaps the most significant development this year, however, Rhapsody gained in both Amazonaided and unaided awareness, usage and favorability. Although some of this growth may have been trickle-down from growth of digital music, overall, only iTunes and Rhapsody…

increased in these measures. This suggests that Rhapsody’s growth was not merely
a reflection of market-level changes, but a direct result of its
redoubled advertising efforts, its commitment to broad partnerships
such as those with MTV Networks and Verizon Wireless and the fact that
the streaming service competes in a niche alongside rather than in
direct competition with iTunes.

Growth for Amazon and Rhapsody came at the expense of smaller
services according to the study.  Consolidation in the sector is
predicted as "lesser-known brands who fail to add unique value and
whose offerings
are limited are beginning to lose out in favor of larger, more robust
services able to meet all of these consumer demands.”

QUESTION: Do services like InSound and eMusic add enough value to survive?

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