Amazon Isn’t Half The Man iTunes Is

12.20.10 7 years ago 10 Comments

Or even 3x, 4x or 5x the competitor. Amazon may sport the el cheapo price tag for their MP3 albums but the iTunes revenue is clearly unshaken. In fact, Amazon could disband today and the likely outcome would probably just result in you seeing more Katy Perry download ads as you do your Facebooking. The annual numbers are in and The Wall Street Journal is reporting that iTunes is crushing the 2nd place in the digital musical market 66% to 13%. Such a whopping gap you can tell the “others” who combine for third place not even to approach the podium for their bronze medal.

Despite its cut-throat pricing, Amazon has made little headway against Apple, which closely ties its iTunes software to its iPods and other gadgets. Amazon heavily markets its Kindle e-reader with TV commercials, but its MP3 store has a lower profile—the company markets it, largely, through emails to customers and a Twitter account where it highlights deals.

Amazon’s share of the paid digital-download market rose to 13.3% in the third quarter, from 11% the year earlier, according to estimates from research firm NPD Group. Meanwhile, iTunes’ share rose to 66.2%, from 63.2%.
Distribution executives at record labels say the disparity between the two may be even steeper, with Amazon commanding just 6% to 10% of the market in any given week, and Apple closer to 90%. [WSJ]

Accessibility, familiarity and its fashionable reputation is what appears to be giving iTunes their leverage. Still, you have to wonder if the awareness of Amazon’s existence or ultra-discounted software is even on the people’s radar. You wouldn’t knowingly pay for gas at 53% more than the station around the corner, would you?

Amazon Can’t Dent iTunes [WSJ]

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