> ## Content Index
> Fetch the complete content index at: https://www.hypebot.com/llms.txt
> Use this file to discover other available public pages before exploring further.

# iTunes Dominates Music Sales, While Pandora’s Footprint Soars [STUDY]
- URL: https://www.hypebot.com/itunes-dominates-music-sales-while-pandoras-footprint-soars-study/
- Published: 2012-09-19T13:54:24.000Z
- Updated: 2012-09-19T13:54:24.000Z
- Description: Market research company The NPD Group has released findings indicating that iTunes continues to dominate the digital music market, as well as all music purchases in the United States. In. Continue reading [https://www.hypebot.com/hypebot/2012/09/itunes-dominates-music-sales-while-pandoras-footprint-
- Author: admin
- Tags: Streaming, Vinyl, Cassettes & Retail, #wp, #wp-post, #Import 2026-01-21 10:49

[![ITunes_682_701218a](http://hypebot.typepad.com/.a/6a00d83451b36c69e2017744d9c48a970d-150wi "ITunes_682_701218a")](http://hypebot.typepad.com/.a/6a00d83451b36c69e2017744d9c48a970d-popup?ref=hypebot.com)

Market research company [The NPD Group](https://www.npd.com/wps/portal/npd/us/home/?ref=hypebot.com) has  
released findings indicating that iTunes continues to dominate the digital  
music market, as well as all music purchases in the United States. In the  
second quarter of 2012, iTunes claimed **64%**  
**of the entire digital music market and 29% of all music sold at retail** (including  
both digital and physical formats). NPD also reports that the market for  
digital ownership of music continues to grow despite increased user adoption of  
streaming and on-demand music services.

  
Coming in at a distant second to iTunes  
was **Amazon MP3**, which saw a 16% share of the digital market. Other contenders  
like **Google Play, eMusic,** and **Zune Music Pass** each only had a 5% share or  
lower. Consumer awareness for Google Play is beginning to grow, but fails to  
compare to that of Amazon and iTunes. One out of five Internet users was aware  
of Google’s music service in quarter two of 2012, which is said to be an  
improvement aided by integrations within the Android Market and Google’s e-bookstore.

"\[As\] the market evolves from the desktop to the pocket, Apple remains  
well positioned as the market leader," said Russ Crupnick, senior VP of  
industry analysis for The NPD Group. "Growing consumer awareness of Google  
Play was aided by the expanding footprint of the Android mobile platform and  
represents the first step toward customer adoption. With continued Apple  
strength and strong entries by other emerging players, Zune Music Pass,  
Rhapsody, and other legacy services have seen awareness fall."

The  
NPD Group expects the digital music market to grow by 10% (on a unit basis) in  
2012.

When  
it comes to overall music retail (including both physical and digital), Apple  
led all music retailers in the second quarter of 2012 with a 29% market share.\*  
It is here, however, where Amazon closes the gap on Apple – coming in second  
place with a 19% share of the overall music retail market. Walmart came in  
third with an 11% market share.

*\*When comparing digital downloads to CD*  
*albums, NPD relies on ‘equivalency’, in which single albums are equivalent to*  
*10 digital-music tracks.*

According  
to NPD, online radio and on-demand music services continue to be the fastest  
growing music consumption methods in the United States. Nearly 50% of all  
Internet users were aware of **Pandora**’s free radio service in the second quarter  
to 2012, while one third were aware of Pandora One (the company’s paid  
subscription service). Of these respondents, half actually used the service  
during second quarter.

Clear  
Channel owned **iHeartRadio** followed behind  
Pandora with 25% awareness, while **Spotify**’s  
consumer awareness reached a new high of 19% – a number that has doubled since the  
company’s U.S. launch in 2011\. In contrast to Pandora, only a quarter of  
respondents who were aware of iHeartRadio or Spotify actually used these  
services during the second quarter.

NPD  
also found that 64% of people who made purchases with iTunes are online radio listeners,  
which would help explain [Apple’s rumored interest](https://www.hypebot.com/apple-developing-pandora-competitor-could-launch-this-year/) in a steaming radio service. After  
all, consumers are beginning to experience higher adoption levels when it comes  
to streaming from their mobile devices compared to downloading to their laptops  
and desktops. It would only behoove Apple as a company to provide their customers  
with an integrated experience by adding streaming capability.

The  
information from NPD’s research is based on surveys of NPD’s proprietary online  
consumer panel. Digital music numbers reflect paid, permanent digital downloads  
only, and survey data was weighted to represent U.S. population of Internet  
users (age 13 and older) and tested for statistical significance at 95 percent  
confidence level.

—

***Hisham Dahud*** *is a Senior Analyst for Hypebot.com. Additionally, he is the head of Business Development for [Fame House](http://famehouse.net/?ref=hypebot.com) and an [independent musician](https://soundcloud.com/hishamdahud?ref=hypebot.com). Follow him on Twitter: [@HishamDahud](http://twitter.com/hishamdahud?ref=hypebot.com)*