WinInfo Daily News   |   Windows IT Pro
in

SuperSite Blog

Apple's growing slice of the music business – in pie charts

Some good info from Fortune (and NPD):

The NPD Group on Tuesday issued what at first appears to be a pair of contradictory facts:

  • Apple now controls the largest share of the music business, its iTunes Store accounting for 25% of unit sales in the first half of 2009, up from 14% in 2007.
  • Compact discs are still the most popular format for paid music, accounting for 65% of unit sales.

How can this be? The trick is that Apple controls the lion's share — 69% — of paid downloads, whereas CD sales are spread out among many players, chief among them Wal-Mart, Best Buy, Amazon and Target.

To see better how this works, let's put the data into pie charts...

Check out the original post for the charts, which do indeed help clarify things.

Comments

 

Waethorn said:

I would like to know exactly where this data is taken from.  I'm guessing it's entirely from the US, which doesn't mean much in the grander scheme of things.  

In Canada, piracy is bigger than iTunes by far.  In Eurasia, piracy is the accepted norm.  Let's not forget about Brazil either.  Brazil has the third highest digital piracy rate in the world next to Russia and China.

Of course, piracy aside, what about vinyl sales?  In Europe, especially in the UK, vinyl is thriving.

August 18, 2009 4:41 PM
 

Waethorn said:

Like I thought:  the NPD findings are only for the US.

It makes sense though, since the Amazon and Walmart online music stores aren't available outside the US.

August 18, 2009 4:43 PM
 

Waethorn said:

"The information in this press release is from NPD's consumer tracking of U.S. consumers, age 13 and older, who reported their purchases of physical product (CDs), digital music, and wireless over-the-air (OTA) transactions"

How in the world do they get the piracy rates then?

Of the people pirating music that they interviewed, only the stupid people would actually admit to it.

August 18, 2009 4:45 PM
 

callayheeko said:

I'm missing something here. CD sales represent 65% of unit sales, and Amazon has 10% of that market; downloads represent 35%, and Amazon has 8% of that market. Amazon's total share should be .65 * 10% + .35 * 8%, or 9.3%, rather than the 6.5% shown in the chart. And unless Walmart also has 20% of the downloads market, its total share should be 20% * .65, or 13%.

August 18, 2009 5:15 PM
 

chuckb84 said:

I guess it helps sell iPods, but I don't think they make much money from it.

So, Beetles or no Beetles when the new iPods debut?

August 18, 2009 5:16 PM
 

lotsamystuff said:

"In Canada, piracy is bigger than iTunes by far."

"only the stupid people would actually admit to it."

Point taken.

August 18, 2009 5:30 PM
 

Avro said:

"In Europe, especially in the UK, vinyl is thriving."

You are kidding.  The typical vinyl afficionado is about 60 and drives hundreds of miles to shop (and that is a very long way on this island).

Most people use iTunes.

August 18, 2009 5:40 PM
 

shark47 said:

"So, Beetles or no Beetles when the new iPods debut?"

The insect or the car?

August 18, 2009 6:26 PM
 

shark47 said:

WalMart can't have a 20% share of CDs and an overall marketshare of 20% unless it has a 20% share of the digital space as well. I don't get the math.

August 18, 2009 6:28 PM
 

Ocean said:

OT POST

Read no further if you dislike OT posts!

I really like Amazons online music store.

August 18, 2009 7:48 PM
 

RunTimeError said:

"In Canada, piracy is bigger than iTunes by far.  In Eurasia, piracy is the accepted norm.  Let's not forget about Brazil either.  Brazil has the third highest digital piracy rate in the world next to Russia and China."

And where is YOUR data taken from? I'd like to see some links (or pie charts!) to back this up.

Personally, I think it's funny that people can't accept that maybe, just maybe, piracy isn't as bad in North America as the RIAA would lead you to believe.

The rest of the world, maybe; I don't doubt the fact that China is huge into digital piracy as are most of the old Eastern Block countries. I'm just wondering if good ol' Waethorn here is nitpicking and pulling facts out of his ass simply because Apple just may be on to something with their digital music distribution business plan...

August 18, 2009 8:47 PM
 

Sir_timbit01 said:

"In Canada, piracy is bigger than iTunes by far. "

Sorry to be OT here, but this is bull and is simply a myth propagated by Hollywood, the RIAA and other copyright lobbying groups, trying to push the Canadian government into adopting a harsher DMCA than the US DMCA, which is already a disaster.

There was a great deal of press not too long ago from the Business Software Alliance claiming that Canada is a 'piracy haven' but it's since been revealed that the data they've been throwing around have merely been guesses. Imagine that!

After all, if it's a news article on the internet, it must be true, right?

www.michaelgeist.ca/.../125

August 18, 2009 9:22 PM
 

subzerohitman721 said:

Back from the vacation and it was good....

This is interesting. I totally get Apple's strategy. CD's are just expensive when the $0.69, $0.99, $1.29 song price makes sense. How much crap is on a CD vs the actual song or songs you want? The RIAA would have you believe that half of America is ripping them off. Its actually the other way around. The RIAA has been ripping off consumers for decades. Unless its absolutely impossible to get on iTunes or Amazon, thats the only time I ever buy a CD.

I agree that the US DMCA is too harsh and most certainly needs to be re-vamped with greater consumer protections and the right to transfer legally purchased media. Has the U.S. DMCA really cut down on piracy? No. Not really. There are still people selling pirated movies, music, and software. The genie is out of the bottle.

Although I do frown upon piracy, I see it as a natural reaction to the extending of corporate copyrights a few years back, overpriced media, restricted rights, and lack of consumer flexability with media. The RIAA created their own worse situation and are fighting an opened Pandora's Box.

August 18, 2009 9:48 PM
 

shark47 said:

If I like a few songs from an album, I've seen that it is cheaper to buy the CD than to download those songs (or the entire album). I also get those CD sleeves, jackets, inserts, etc. - stuff I wouldn't have got if I had downloaded. I do download the individual song from the Amazon store, though.

August 19, 2009 7:03 AM
 

Dude1313 said:

Something we can all agree on, our collective dislike of the RIAA anc record companies.

August 19, 2009 8:10 AM
 

shark47 said:

"Something we can all agree on, our collective dislike of the RIAA anc record companies. "

Sometimes, you have to take extreme measures to get people to respect the law. "Click it or ticket" is an example of such a measure.

In any case, it's a lot better than the way insurance companies treat their customers.

August 19, 2009 8:48 AM
 

Ocean said:

>>I also get those CD sleeves, jackets, inserts, etc. - stuff I wouldn't have got if I had downloaded.<<

Funny...it's that kind of stuff...that I read once, that I don't want.  It just becomes clutter.

August 19, 2009 9:07 AM
 

DRWAM said:

Holly crap! Everyone getting along in an Apple post? What's the world coming to? Is this the seventh sign?

Any way, reading stats are usually useless. They are usually biased and will change next year, so we ought to play to guess what will happen next year, Jean Dixon style. We were always taught to start with a premise and try to prove it. Ppl will juggle numbers to do that sometimes. So much for the double blind studies,...eh Wae?

August 19, 2009 9:46 AM
 

shark47 said:

"... It just becomes clutter."

Just like many of your posts, I guess.

August 19, 2009 10:07 AM
 

chuckb84 said:

"Holly crap! Everyone getting along in an Apple post?"

Paul didn't put the usual snarky comments, no "Mac fanatics" or anything, so it's just data. Combined with the fact that EVERYONE hates the record companies and their asinine policies and you may just have an area of common ground.

August 19, 2009 10:42 AM
 

lotsamystuff said:

"ust like many of your posts, I guess."

Stone, meet glass house.

August 19, 2009 11:22 AM
 

Ocean said:

"Everyone getting along in an Apple post?"

Read one post down.

Paul, it's past time to bounce Carp47 from the site.

August 19, 2009 11:24 AM
 

shark47 said:

"Stone, meet glass house."

Funny that, coming from you.

August 19, 2009 11:58 AM
 

gorath said:

Amazon's online music store is available in the UK, and is great. I much prefer it to i-tunes.

To be clear, I don't actually dislike the i-tunes store, in fact, it's also great, I just prefer Amazon's effort.

I am not a fan at all, however, of the damned i-tunes software.

August 19, 2009 3:02 PM
 

Apple’s growing slice of the music business ??? in pie charts | The Software Nook said:

Pingback from  Apple&#8217;s growing slice of the music business ??? in pie charts | The Software Nook

August 20, 2009 5:27 AM
 

Apple’s growing slice of the music business ??? in pie charts | VishwaTech IT News said:

Pingback from  Apple&#8217;s growing slice of the music business ??? in pie charts | VishwaTech IT News

August 25, 2009 12:44 AM
Acceptable Use Policy

About pthurrott

Paul Thurrott is the guy behind the SuperSite for Windows. Way behind. :)
SPONSORED LINKS FEATURED LINKS

Calculate your savings nowSee how SAN is 57% cheaper than DAS over three years Free CDs Offer Fundamental Content for IT ProsAre you up to speed on the latest technologies and solutions? Don't miss out on your chance to get up to speed quickly on fundamental, in-depth information on some of the hottest topics in our library of content. Let Your Users Reset Their Own Passwords: Free Download Try a 30 day free trial of Desktop Authority Password Self-Service – it provides an easy-to-use, robust system for allowing users to reset their own forgotten passwords or locked accounts. Exchange Server 2010: Deploying Unified Communications - Virtual conferenceDecember 1, 2009 - Free Registration. Build your Unified Communications future on a strong Exchange Server 2010 foundation. Get Windows IT Pro & Mark Minasi’s Favorite Power Tools GuideOrder Windows IT Pro now and get "More of Mark Minasi's Favorite Power Tools"--a in-depth guide to the most useful Windows commands --FREE with your paid order! Subscribe today, and save 58% off the cover price! Migration, Virtualization, Availability, and Desktop ManagementRealize the importance of a workload optimization strategy...it can affect your bottom line! Deep Dive into VMware vSphere, eLearning SeriesJoin John Savill to explore the major functionality capabilities of the vSphere virtualization platform, including identification of the changes from ESX 3.5.
Windows IT Pro |  Subscribe |  Register |  FAQ for Windows |  Media Kit |  WinInfo News |  Europe Edition |  About Us |  Contact Us/Customer Service |  Affiliates/Licensing
SQL Server Magazine |  Office & SharePoint Pro |  WinDevPro |  asp.netPRO |  IT Library |  Technology Resource Directory |  ITTV |  IT Job Hound

© 2009 Penton Media, Inc.     Terms of Use | Privacy Statement | Reprints and Licensing