Print 16 comment(s) - last by winterspan.. on Feb 27 at 6:32 AM

Pay to download digital music rapidly grows in 2007

iTunes' phenomenal growth continues as latest industry research performed by the NPD Group officially states it is now the second largest music retailer in the U.S. The report prepared by the research firm analyzed 2007 music sales figures in the U.S., including the sales of both physical CDs and digital music. iTunes falls short in music sales only to Wal-Mart.

The latest sales figures, which holds every 12 songs downloaded as the equivalent of an entire CD, is not just a win for Apple, but also proves that the entire paid digital music download industry is rapidly growing. According to NPD, legal digital downloads "sharply" increased in 2007. Interestingly, there was also a 10 percent decline in overall music spending -- most likely because online digital music retailers give consumers the ability to purchase single songs in place of entire albums.

NPD went on to estimate that one million consumers moved away from buying music CDs in 2007. The firm believes that younger consumers led the way in the CD walkout. It estimates that 48% of teens in the U.S. decided to not purchase even a single CD in 2007, up from 38% in 2006.

P2P usage among teens to share music also grew last year, with the number of music files downloaded via P2P rapidly increasing among teens.

Despite the heightened P2P activity, which is estimated to be used in 19% of American households, NDP states that 10% of all music purchased in 2007 was legally downloaded via sites such as iTunes or Amazon. The number of consumers who legally downloaded music grew to 29 million consumers, whereas previous sales figures placed that number at 24 million. Sales growth can largely be attributed to consumers in the 36 to 50 age group, which also happened to purchase a large number of digital music players in the same year.

Apple said today that there are now over 50 million iTunes store customers. In addition, Apple states that iTunes sold over four billion songs, and that 20 million songs were sold on Christmas Day 2007.

The latest sales figures boosted iTunes past Best Buy, which previously held second place in retailer rankings. Apple similarly overtook retailer for third place last June.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

Problably not the big of a market
By bhieb on 2/26/2008 4:05:55 PM , Rating: 5
including the sales of both physics CDs and digital music
Don't know about you but how many people are interested in physics cd's?

RE: Problably not the big of a market
By Brandon Hill on 2/26/2008 4:11:09 PM , Rating: 4
NVIDIA and Intel

RE: Problably not the big of a market
By rcc on 2/26/2008 6:37:16 PM , Rating: 2
Computer literate Physics teachers and students as well!!

By Wightout on 2/26/2008 4:13:55 PM , Rating: 2
No wonder people are moving away from them...

RE: Problably not the big of a market
By eman7613 on 2/26/08, Rating: 0
RE: Problably not the big of a market
By Bluestealth on 2/26/2008 4:23:17 PM , Rating: 2
I agree lossless un-drmed audio and they work well in all cars. Although I obviously have a FLAC copy of every song I have, I also have regular cds that I use in my car.

By wwwebsurfer on 2/26/2008 4:51:08 PM , Rating: 2
Yup, I buy a cd, rip to PC, downsample for MP3 player (I don't wear/use nice equipment when out just for a walk or trip to the gym).

Selling CDs
By DtTall on 2/26/2008 5:25:14 PM , Rating: 4
Does anyone else here see a trend? You can't sell your downloaded music, only CDs. You can't display a nice collection of files on a stand in you rec room. And what about if your HD gets breaks? If a CD gets scratched you lose that CD. If your HD crashes you lose it all-yes I back up the files but many people do not. A CD gets scratched a lot more often then an HD breaks, but if you're like me you buy the CD, rip it, and store/display it. Not a whole lot of opportunity for scratching.

The music industry is slowly eliminating a secondary market for all of their goods making them the only place to legally get the music. No eBay or Amazon. Only a certain number of computers to play a purchased song. Just buy the CD, rip it, store it.

RE: Selling CDs
By joex444 on 2/26/2008 6:31:40 PM , Rating: 5
If my hard drive gets breaks, then my account with the download site has a record of what I paid for and they allow me to download it again to replace my collection.

What if iTunes gets breaks?

RE: Selling CDs
By michael2k on 2/26/2008 7:44:43 PM , Rating: 2
Proper backup technique means:
1) You've burned your collection to CD
2) You've burned your audio-collection to CD

Step 1 is for when your system breaks
Step 2 is for when iTunes breaks (only necessary for DRMed files)

RE: Selling CDs
By animedude on 2/26/2008 9:14:25 PM , Rating: 2
Class action suit against Apple...

RE: Selling CDs
By nunya on 2/26/2008 11:31:47 PM , Rating: 2
It's not often something online actually makes me laugh out loud. Kudos to you sir.

Anyone else notice
By Alexstarfire on 2/26/2008 7:15:54 PM , Rating: 2
.. that they said only 10% of music downloads are legal? Are they trying to imply that 90% of the downloaded music is illegal?

RE: Anyone else notice
By RjBass on 2/26/2008 10:19:45 PM , Rating: 2
I think that was the point, yes.

RE: Anyone else notice
By winterspan on 2/27/2008 6:32:20 AM , Rating: 4
NDP states that 10% of all music purchased in 2007 was legally downloaded via sites such as iTunes or Amazon.

10% of TOTAL music, not downloaded.

Reading comprehension FTW!

cd boycott
By RamarC on 2/26/2008 5:50:52 PM , Rating: 2
i still buy a few CDs but only to support indie/new artists. if the US music industry is worried about CD sales, drop the price... retail CD prices have been stagnant for the past 2 decades. and don't get me started on the price of 'imports.'

"Google fired a shot heard 'round the world, and now a second American company has answered the call to defend the rights of the Chinese people." -- Rep. Christopher H. Smith (R-N.J.)

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki