April 3, 2008
Apple beats up on Wal-Mart
Posted Apr. 3, ’08, 9:18 AM PT by Dan Moren
Category | iTunes » iTunes Store
The era of the digital music download is in full swing. According to data received by Ars Technica, Apple has, for the first time, taken the top spot for music sales. The information, which refers specifically to January 2008, shows Apple leading Wal-Mart by 4%, followed by Best Buy and Amazon. That’s a nice jump for Apple, which passed Best Buy to grab the number two spot for sales in 2007.
Since the numbers Ars cites refer only to January 2008, there’s always the possibility that Wal-Mart might have a resurgence in subsequent months, but given that digital downloads are growing while physical CD sales are declining, it seems likely that iTunes—which still commands the vast majority of download sales—is destined to take over the number one position for good sometime in the not too distant future.
As good and rosy as that all seems, I wonder if this won’t have a potentially adverse effect on one aspect of iTunes: its push for DRM-free music. With iTunes still holding a commanding lead in that market, the music labels have no incentive to acquiesce to Apple’s demands in that regard, i.e. “But you’re doing bang up business with DRM!” On the other hand, it continues to make DRM-free tracks a compelling argument in creating a forceful competitor to iTunes; I’d certainly be surprised to see any new music services launched with DRM.
Update: Apple’s rolled out a press release about their music-selling prowess, which they say covers the months of January and February 2008.
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Apple continues to add more and more songs without DRM. I was surprised earlier this week to find that there were some iTunes Plus "upgrades" available for a couple albums I have purchased just in the last year.
Without being particularly picky only 1/3 of the music I've purchased in the last six months from iTunes has had DRM attached. Many independent labels offer music with DRM in addition to EMI.