Dec
31

iTunes Leads Online Music Market with 66% Share VS. Amazon’s 13%

iTunes takes the lead in online music market with 66.2 percent share. The competition might be too tight among these online music sellers but iTunes got the biggest percentage in the market share on the second half of 2010. Taking the second spot is Amazon with 13.3 percent. Apparently, there’s a huge difference between the top two competing online music stores. From 63.2 percent last year, iTunes’s market share has augmented. Amazon had also increased its market share from 11 percent share in 2009 to 13.3 percent in 2010. The figures were announced by NPD Group, the research firm who checked the sales of the competing digital music stores.United States Department of Justice was even reported to have probed Apple for accusations that iTunes had been suppressing recording artists and known record labels to strangle the competition against Amazon.The intervening of the Department of Justice plus Ama nanacast zon’s promotion called “Daily Deal” seemed to not affect iTunes’ increasing market share. Amazon’s Daily Deal gives discounts on albums of best selling artists. When iTunes released the Beatles’ entire catalogue ($1.62 per song, $17.99 per album), Amazon released Kid Rock’s recent album priced at $3.99 on the same day the Fab Four’s collection was launched.However good this Daily Deal is, some music labels raise the probability that these discounts may cause the public to look down at the worth of their products. Another problem on the software-to-market strategy might have caused Amazon to keep up with iTunes climbing market share. Apple has iTunes software-iPod gadgets tie up while Amazon’s MP3 store only markets its products through emails and via Twitter. The latter’s Kindle e-book reader is being marketed greatly over TV commercials though.Albums on iTunes are normally priced at $9.99 or $14.

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