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iTunes now holds 66% of digital music market

Updated Dec 19th, 2018 6:57PM EST

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According to new third quarter figures issued by market research firm NPD Group, Apple’s iTunes music store now accounts for 66.2% of online music purchases, up from 63.2% in the same quarter last year. Apple’s biggest competitor in the space, Amazon, currently holds 13.3% of the market. Executives from major labels suggest the disparity could be even larger, with Amazon owning just 6% to 10% of the market while Apple’s share is nearly 90%. Pricing, often a major factor in retail sales, does not appear to have a major impact on digital music sales. Amazon’s strategy, beyond various distribution deals, is to undercut iTunes. Amazon’s average selling price for popular albums is significantly lower than the $9.99 to $14.99 Apple often charges, and even deeper discounts can be found regularly through promotions like “Daily Deals.” Despite Amazon’s best efforts, however, iTunes’ digital market share continues to grow and Apple’s service remains the global leader in music sales, having surpassed Walmart to take the No. 1 spot in 2008.


Zach Epstein
Zach Epstein Executive Editor

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content. Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment.

His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.