NPD: iTunes Still No. 1 Music Retailer

Virtual Brick-and-Mortar

The latest MUSICWATCH consumer surveys from THE NPD GROUP indicate that iTUNES continues to be the top music retailer in AMERICA for the first half of 2008 (based on purchases of CDs and a-la-carte digital music downloads). It maintained its position after passing up No. 2 WAL-MART earlier this year.

Following iTUNES and WAL-MART are BEST BUY, AMAZON and TARGET, with AMAZON showing the most sales growth thanks to last year's launch of its AMAZON.MP3 digital music store. "We expect APPLE will consolidate its lead in the retail music market, as CD sales continue to slow," NPD GROUP entertainment industry analyst RUSS CRUPNICK said. "AMAZON’s CD buyers tend to be older, so they haven't abandoned the CD format to the extent seen in the average music buyer. Plus, AMAZON’s successful introduction of its digital download store will help the company improve its position in the future."

The sales data was derived from surveys of U.S. consumers, age 13 and older, reporting on their purchases of physical product (CDs), digital music and wireless over-the-air (OTA) transactions -- excluding ringtones. Purchases from retailer websites and brick-and-mortar stores are combined in this ranking. Note: NPD only tracks digital music sold by the song or album, not music purchased under subscription from services like eMUSIC, or subscription revenues from RHAPSODY and NAPSTER.

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