Report: iTunes owns 74 percent of the digital music market

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.

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TOPICS: Apple, iOS
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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

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21 comments
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  • And Frostwire

    Owns the rest
    happyharry_z
  • And if the answer is no?

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

    Time for the DoJ to step in and force all ipods, ipads, and iphones to offer a ballot box, allowing users to choose an alternative music storefront. Also, apple's music business must be split off into a different company.

    You asked, Jason, don't blame me if you don't like the answer.
    toddbottom3
    • Monopoly

      Being a monopoly is not illegal. Being a preditory monopoly is, which is why MS was found guilty.
      THavoc
      • Isn't that what they are?

        If trying to squish out competition isn't predatory behavior, then I'm not sure what is.

        They're doing the exact same thing that Microsoft did 10-20 years ago.

        Heck, their lawsuits are even reminiscent to the ones they had before.

        Something about suing someone for the "look and feel" of the operating system?

        Déjà vu...
        ForeverCookie
        • If Apple used iTunes

          To force people into buying Macs, you might be able to make a case.
          baggins_z
      • Monopoly?

        It would help his case if Apple actually were a monopoly (can't get iTMS on Android), let alone a predatory one.

        Funny thing is, there are strong alternatives to the iTMS ecosystem for music, and many are quite popular - Spotify, Pandora, etc.

        But, you know, let him continue broadcasting his ignorance. It's funny to watch.
        Random_Walk
    • Yes, order Apple to break iTunes out to a new company

      Like the DOJ told MS to do with OSes and Apps. Then Apple can give the finger to the DOJ, and completely ignore the ruling just like MS did.
      jimselover
      • Gumbo Fantasies

        There was a ruling with an order. It was appealed, the findings of fact and law upheld, but the penalty overturned and the case remanded for the final phase. Microsoft did not defy any one. The Department of Justice and Microsoft worked out a consent agreement which Microsoft executed to the FOJ's satisfaction. That agreement was extended a couple of years and has now been retired.

        You do realize that Apple's iTunes business would still dominate music retail, right? And Apple would still dominate the music player business, which is a shadow of its former self as the smartphone took a lot of the music player business.

        One can buy music content from iTMS and put it on a non Apple device. One could buy music from Amazon and put it on an Apple device. Apple does set most of its prices, but, unlike books, does not require music labels to guarantee iTMS gets the lowest price.
        DannyO_0x98
    • TB3: You might what to rethink your stratagy of using MS

      as a shining example of the corporate citizen. Given the undeniable fact that MS bought its way out of every condition in the judgements against it, the only thing MS symbolizes is that justice in the US only applies to those with insufficient resources to pay off the government.
      jimselover
  • well that great news for Apple

    still enjoy Google Music and Amazon Mp3 and Spotifi services so much better. Man I haven't used iTunes in about 5 years now.

    do adults still use iTunes? I would imagine it's make up is mostly teen age girls.
    jonandkelly
  • yep

    it's good software.
    brinxster
  • Correction: ITunes Owns 74% Of The PAID Digital Music Market

    Last I checked, unpaid music downloads dwarfed paid ones by over 10:1. At one point there was even the paid ringtones market, which on its own was several times the size of ITunes, though I think that's mostly gone now.
    ldo17
    • Are you really counting theft as a valid "market"?

      Yes, there are lots of cheap people out there happily stealing songs because they feel justified. Counting this as part of the legitimate music market is foolish. Likewise, this 74% is a % of the value and not of the downloads. The stolen market represents 0% of the value and not the 10:1 you implied.
      Bruizer
      • Are you saying I broke the law

        by digitizing all my albums, tapes, and CDs?
        jimselover
        • Re: Are you saying I broke the law

          I myself wonder about the mentality of people who are so quick to jump to guilty-until-proven-innocent conclusions...
          ldo17
        • Location

          Depends where you live. Here in the UK, you would have done. There have been/are plans to allow digitising your own music; not sure if they've been passed into law yet.
          DJL64
  • I doubt that

    almost all of the people I know use amazon so, I seriously doubt the market share is as high as the claims and If you said 50% I could see that.
    slickjim
    • Seriously...

      My posting gets flagged for using the word M.O.S.T without the periods but, that bozo up top can post about the mother making a ton of cash right?
      slickjim
    • The iTunes Music Store has...

      575,000,000 active accounts.

      How many people are there in your 'almost all of the people I know' survey?
      msalzberg
  • Feels like an ad

    74%? They use to have it all. I guess the percentage has dropped over the years because of the competition [and who wants to use bloated and buggy iTunes software anyways].
    Gisabun