Report: iTunes owns 74 percent of the digital music market

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?