Thursday, April 03, 2008

iTunes Reaches #1 in Music Sales - Or Does It?

Reports are circulating that iTunes has surpassed Wal-Mart in music sales, closely following a February report which showed them passing Best Buy to reach #2 in music sales. According to Ars Technica, they have received a copy of an internal Apple email which trumpeted the news to employees, sent yesterday.

The email contains a screenshot of NPD data (above, click to enlarge) which shows iTunes in first with 19%, Wal-Mart in second with 15%, Best Buy in third with 13% and Amazon.com fourth at 6%.

However, others questioned the validity of the data, or rather, the staying power of iTunes. A couple of assertions led to the questions.
  • Gift cards. There were probably a ton of iTunes gift cards sent around during the Christmas season. While it was pointed out by Ars in a rebuttal that everyone else had gift cards as well, it's a lot easier to send electronic gift cards (and redeem them) than physical ones.
  • Why no press release? This is big news; you would expect a huge Apple press release.
Unfortunately, all that "evidence" is circumstantial and conjecture, and wouldn't stand up in court, as Gil Grissom would say.

My take?

Yes, the gift cards had something to do with it. If there's no press release forthcoming, it's because Apple realizes that fact and is waiting for the February numbers. Of course, who knows; we could see a press release later today.

At any rate, even if it's a temporary bump, there's no denying two facts:
  1. A permanent changing of the guard is going to happen eventually, anyway.
  2. It's a great feat, no matter what.


4 comments:

Robbie said...

"While it was pointed out by Ars in a rebuttal that everyone else had gift cards as well, it's a lot easier to send electronic gift cards (and redeem them) than physical ones."

That argument doesn't stand up since iTunes is electronic downloads in the first place. Because it's easier to buy the music electronically rather than physically does that mean it shouldn't stand?

Technology Expert said...

I never said it shouldn't stand. What I said was, it may not continue to the next month. But I also added it was inevitable that iTunes would be the #1 retailer ... eventually, if not now.

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