Report: iTunes owns 74 percent of the digital music market

Summary:New data shows that Apple's iTunes has quintupled in seven years and dominates the $9 billion a year digital music market.

iTunes owns 75 percent of the digital music market - Jason O'Grady

Asymco (@asymco) reports (via Launch) that iTunes owns a staggering 74 percent of the digital music market, including subscription services like Pandora, Deezer, Rhapsody, Rdio and Spotify. According to its research, iTunes music revenue is estimate to be ~$6.9 billion per year and the music industry's international trade group says that consumers spend a total of $9.3 billion per year on digital music.

The other interesting aspect to the report is that while Music and Apps are essentially loss leaders in the iTunes Store (generating an estimated 1 and 2 percent margin, respectively), Software (the blue area in the graph above) is one of the forgotten heroes of iTunes, generating an estimated 50 percent margin.

Apple now sells almost all of its software exclusively through the Mac App Store, including OS X, iLife, iWork and several Pro apps like Aperture ($80), Final Cut Pro ($300), Motion ($50), Compressor ($50), and Logic Pro ($200). 

But how about that Music number? Can anyone catch up to iTunes in music sales?

Software one of the forgotten heroes of iTunes? Jason O'Grady


Topics: Apple, iOS


Jason D. O'Grady developed an affinity for Apple computers after using the original Lisa, and this affinity turned into a bona-fide obsession when he got the original 128 KB Macintosh in 1984. He started writing one of the first Web sites about Apple (O'Grady's PowerPage) in 1995 and is considered to be one of the fathers of blogging.... Full Bio

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