1/25/2005
iTunes Sells Over 1 Million Songs a Day
Are you on iTunes yet? If you're not, you might soon be in a category by yourself. Today Apple reported that its online music store, iTunes, has completely blown away all other competition. Since launching the iTunes Music Store, Apple has sold over 250 million songs. But Apple has taken this success global. Once limited to only the USA, the iTMS is now available in 15 countries. As a result of this global expansion, Apple now sells over one million legal songs per day at 99 cents each.
But even at a million songs a day, how much of the legal download market does iTunes control? "According to research firm NPD Group, music sold from iTunes accounts up to 70% of legal music sold between December 2003 and July 2004. The tremendous success of this online music store is attributed to the immense popularity of Apple's iPod. If and when the service increases coverage further still into other Countries and markets the figure is set to increase again." (Source: EarthTimes.org).
With Napster clearly losing the online music battle to Apple, this is what Napster CEO Chris Gorog had to say, "We're unconcerned about the installed base of iPod users... Our primary market is people who have not yet entered the digital music market. As soon as Napster2Go (which allows Napster subscribers to transfer their music to portable devices) is released, their market share is going to go down." (Source: hindustantimes.com).
Curiously Apple has chosen to stay out of the portable video market. Their widely anticipated iPod Photo was rumored to have video capabilities. But disappointingly only added photo functionality. It's doubtful that Apple can survive in this market with a music only offering. Let's hope they have something big up their sleeve for the next iPod.
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