NPD: Apple Selling 70% of Digital Music in U.S.

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iTunes

Apple now sells 70 percent of digital music in the U.S., a retail market research firm announced Wednesday. Additionally, Internet retailer Amazon now ties with Walmart as the second most-common source for music purchases nationally, just the latest sign of declining demand for physical CDs bought in brick-and-mortar stores.

Earlier this month, Billboard announced Apple sells 28 percent of all music, with Walmart a distant second at 12.5 percent of music sales.

NPD also announced Apple’s rate of growth is slowing, picking up one percentage point over the previous year, perhaps indicating the Cupertino, Calif. company is maxing-out at seven of every 10 digital music purchases in the United States. By comparison, Amazon gained four points for 12 percent, a level shared by Walmart.

Digital sales now comprise 40 percent of total music purchases, a five percent increase over last year, according to NPD. “Online shopping offers consumers who still want CDs more variety than they would get in a brick-and-mortar store; plus recommendations, and other interactive features that raise the overall value proposition for music buyers,” Russ Crupnick, NPD vice president of industry analysis, said.

Unclear is how much market Google might capture after a recent report the Mountain View, Calif. Internet giant is planning a service converting iTunes downloads for Android users.

[via AppleInsider]