Apple now controls 75 percent of the digital music market

By on June 21, 2013, 2:30 PM

Despite a growing number of streaming music services and outlets to purchase tunes, the digital music revolution is still in its infancy. Apple changed the way we purchase and consume music with iTunes and the iPod and nearly 12 years later, they’re still the industry leader in digital music sales – by a huge margin.

Asymco analyst Horace Dediu now estimates that Apple earns $6.9 billion a year via music purchases on iTunes. When you consider that Billboard’s Glenn Peoples pegs total consumer spending on digital music to be around $9.3 billion, you quickly realize that Apple controls roughly 75 percent of the digital music market.

True enough, services like Rhapsody, Spotify and Pandora as well as other digital marketplaces like Amazon have taken market share away from Cupertino in recent years. It’s a trend that may or may not continue, perhaps depending on how successful iTunes Radio proves to be for Apple later this year.

If you recall, Apple quelled longstanding rumors of a streaming music service earlier this month at WWDC. The music streaming and discovery app, which will be part of iOS 7, will work much like Pandora in that it allows users to create custom radio stations based on songs or artists and share them with friends. Users can opt to purchase a song they want directly in iTunes – a feature that could help maintain Apple’s digital music market share for years to come.

iOS 7 will be available to download later this fall and will likely ship on the new iPhone.




User Comments: 19

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windmill007 said:

I don't see why anyone would pay over $1 a song when their are services such as Spotify with 20 million for $10 unless you don't know any better. People have money to burn I guess.

captaincranky captaincranky, TechSpot Addict, said:

I don't see why anyone would pay over $1 a song when their are services such as Spotify with 20 million for $10 unless you don't know any better. People have money to burn I guess.

What's the bit rate?

Is there any DRM?

Can you get the song you want, when you want it?

(I'm an old man, I still actually buy CDs and concert videos).

That said, anything is probably better than having Apple software running on a Windows computer.

You'd think Apple in general would be repellant to enough people, they'd buy more music from Amazon. At least maybe 50/50..bah humbug.

1 person liked this | Railman said:

I too still buy CDs. I also hate iTunes as it is bloatware.

1 person liked this | mailpup mailpup said:

I don't buy very much music but when I do, it's all CDs.

windmill007 said:

Spotify Bitrate is up to 320k and u can download them offline you just have to check in within 30 days. Yes u can get almost any song. There are a few hold outs but they are all slowly joining in. It works on ur computer, smartphone, iPod touch, iPad. You can not burn them to CDs however. U can also use it for free.

Johnny Doe Johnny Doe said:

There was also a time when Apple control over 75% of the mobile market too. Oh have time changed, and oh how times will change.

Android rules.

spydercanopus spydercanopus said:

You guys didn't click accept on the Human CentiPad clause, right?

Johnny Doe Johnny Doe said:

You guys didn't click accept on the Human CentiPad clause, right?

I have no idea what you are talking about.

1 person liked this | captaincranky captaincranky, TechSpot Addict, said:

Count me among the baffled....

1 person liked this | Johnny Doe Johnny Doe said:

Just Googled it and saw a clip from Southpark. Never had an iPad so I never signed the clause. I guess the Human CentiPad is from a Movie? Googleing.....

2 people like this | captaincranky captaincranky, TechSpot Addict, said:

You know I'm really old, and even I don't come up with references that obscure, and I've had 60+ years of practice.

Although perhaps it is easily explicable, in that I don't have cable, and probably wouldn't watch "Southpark" if I did.

I felt the joke flying over my head though, and it gave off a lovely breeze.

Saintnsinner said:

I didn't know you we're that old captain. That explains a lot. LoL

Skidmarksdeluxe Skidmarksdeluxe said:

(I'm an old man, I still actually buy CDs and concert videos).

That said, anything is probably better than having Apple software running on a Windows computer.

You'd think Apple in general would be repellant to enough people, they'd buy more music from Amazon. At least maybe 50/50..bah humbug.

I'd still buy 78 rpm records, 45 rpm 7 singles & 16mm film new if it were possible.

I still have a perfectly good gramophone player stored away in my garage.

Johnny Doe Johnny Doe said:

You know I'm really old, and even I don't come up with references that obscure, and I've had 60+ years of practice.

Although perhaps it is easily explicable, in that I don't have cable, and probably wouldn't watch "Southpark" if I did.

I felt the joke flying over my head though, and it gave off a lovely breeze.

No worries I'm about 20 years your junior and I didn't get it either, so don't feel bad. And no Cable for me too, there is nothing on that watchable today.

Railman said:

I don't have cable either. Here in England loads of people have Sky TV which is a satellite broadcaster. I don't subscribe to that also. I think it is far too expensive and there are only a handful of programs I miss but I normally catch them on DVD which works out cheaper and you don't have ads to contend with.

Many of the CDs I buy work out cheaper than downloads. I like having a product that has a physical presence. Most of the CDs I buy tend to be either old or by artists that are old. I have never liked pop music and many of the albums are concept records that can be continuous.Something that iPhones cannot play without that annoying break in the music between tracks.

Guest said:

captaincranky, "That said, anything is probably better than having Apple software..."

+infinity and beyond!

PinothyJ said:

I don't see why anyone would pay over $1 a song when their are services such as Spotify with 20 million for $10 unless you don't know any better. People have money to burn I guess.

What's the bit rate?

Is there any DRM?

Can you get the song you want, when you want it?

(I'm an old man, I still actually buy CDs and concert videos).

That said, anything is probably better than having Apple software running on a Windows computer.

You'd think Apple in general would be repellant to enough people, they'd buy more music from Amazon. At least maybe 50/50..bah humbug.

This is the last time we ever agree (although, I am a BandCamp guy myself)...

Johnny Doe Johnny Doe said:

I don't have cable either. Here in England loads of people have Sky TV which is a satellite broadcaster. I don't subscribe to that also. I think it is far too expensive and there are only a handful of programs I miss but I normally catch them on DVD which works out cheaper and you don't have ads to contend with.

Many of the CDs I buy work out cheaper than downloads. I like having a product that has a physical presence. Most of the CDs I buy tend to be either old or by artists that are old. I have never liked pop music and many of the albums are concept records that can be continuous.Something that iPhones cannot play without that annoying break in the music between tracks.

Well said.

SNGX1275 SNGX1275, TS Forces Special, said:

I have purchased a lot of used CDs off Amazon. That (for the time being) is still 100% legal, and you get it in almost* as good of quality (sound) as possible (* freshly pressed vinyl is probably the best if it was recorded well). The artists don't get anything out of that, so in a way it isn't any better than pirating a nice flac rip. But CDs for less than a dollar are hard to beat, need to order several though (from the same seller) to make shipping not negate the low price.

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