Apple Is Now the #1 US Music Retailer
Quantrell writes "A leaked e-mail shows that Apple hit the #1 spot for music sales in January. The article speculates that consumers cashing in their holiday gift cards may have played a role; but of course Wal-Mart and the other retailers sold gift cards too. The news is a mixed bag for the record labels. 'For the music industry, there is a dark side to Apple's ascension to the top of the charts. Buying patterns for digital downloads are different, as customers are far more likely to cherry pick a favorite track or two from an album than purchase the whole thing. In contrast, brick-and-mortar sales are predominantly high-margin CDs.'" We recently discussed Wal-Mart's role in the music business, back when they were selling nearly 20% of US music. For January Apple was at 19% and Wal-Mart at 15%.
that this year we have a new #1!
It's Apple iTunes with DRM Forever!
Summation 2
i say "one future of music distribution" because i am also leaning towards this idea
$action = empty(PHP) ? backToC() : unset(PHP) ; "when the concrete cases are understood, the abstractions are readily
It's number one now... based on a story saying it was number one in January and that may have been a temporary artefact of gift card sales? What?
No kidding!!! What do you say at this point?
Now that Apple has replaced Wal-mart as the 1000 pound gorilla in music retail, maybe the company will be able to drag the music industry into the new millennium.
If someone says he and his monkey have nothing to hide, they almost certainly do.
Not so much a mixed bag as it is further evidence that the RIAAs business model is flawed.
Here they have the worlds largest brick-and-mortar store and the most influential online music retailers moving ungodly units of their crappy products and still they cry poverty.
Furthermore, Wal-Mart has also done the same thing by basically dictating that it will start selling CDs at $9-$10 or it won't sell them at all. I'm kind of shocked the music industry just sat back and let that happen (even though it joys me to see people able to buy Beatles albums at a decent price). I mean, why should Wal-Mart be able to dictate MSRP? Oh, that's right, they are the all-encompassing Wal-Mart
Either way, I find it humorous that what seems to be a 'dark side' for the RIAA is actually beautiful for the end consumer. I wish the RIAA would step back and look at how they could maximize profits now that distribution could be digital. Would I still be spending ~$20 a month on music if each song were ten cents? No, I'd probably go nuts and be spending $50 a month and I bet people that spend no money on music would start to slowly $5 or $10 for some popular albums. Just a though, I really wish they would look more at maximizing profits by lowering cost on something that can be copied for free and distributed cheaply.
My work here is dung.
It's nice to see RIAA power fading but Apple is still a digital restrictions enabler. We shall see what they do with their power. Right now, the artist still gets the RIAA shaft from Apple the same as they do any other music store money wise. Has Apple even been able to break the RIAA, "our way or the highway" rule and sell both RIAA music and independent music?
If the CD and other restrictionless media goes away we will all be media poor again. It will be like going back to pre taping life where only special people with expensive equipment could make and sell recordings.
As of Feb 26 2008 iTunes is the #2 retailer in the US. http://www.apple.com/pr/library/2008/02/26itunes.html
What the article is talking about is a 1 week period in January (most likely caused by all the people using their Christmas gifts of iTunes gift cards) where the store sold more music. Overall though, it still remains number two.
Legally obligatory sig : My opinions are my own... etc etc
People buy music these days?
Not me.
I have excellent Karma and I am not afraid to Troll it.
Apparently the concept of the market rejecting DRM is overblown?
The more you regulate a company, the worse its products become.
The part that I don't get is why the labels aren't offering to Apple, and thus Apple to its customers album discounts. Sell me an entire Regina Spektor album for the $6 or $7 and I'll gladly pay for it, instead of otherwise buying 4 tracks individually. At that point it's pure profit for everyone involved. I might still buy the one song on it I like, play it more find out I really really like, and buy the whole album--with that song again.
I don't want the album to go away. I think it's a great conceptual unit (when used correctly). Let me pay more for it.
As an aside, I'd appreciate iTunes letting me easily select blocks of music I could keep in the same order, even when listening to randomized music. "Sgt. Pepper's Lonely Hearts Club Band" should always be followed by "With a Little Help from My Friends" (and maybe the album's entirety).
Anybody know why either of these don't happen?
Gasp! Heaven forbid that companies might actually give customers what they want! It's an OUTRAGE!!!
Despite what EULAs say, most software is sold, not licensed.
Since Apple is the #1 music retailer, and the music biz is always the most copycat, fad-driven biz, they've got to start suing more of their customers.
They don't want the cool kids at the RIAA to think they're lame.
What will be the first Apple lawsuit crusade? DRM violation? iPod hacking? Or something really creative?
--
make install -not war
DRM free ftw!
In all seriousness, I do like iTunes. I own an iPod touch, but rarely purchased things from iTunes, at first. I own enough CDs that I can pick and choose from them to fill the lil bugger, but iTunes does tap into one thing well enough, impulse buys. Sometimes I hear a song, I love it, but I don't want to go buy the CD. So this is where iTunes is making a killing on me and taking my cash. I find the song, see I can sample the other songs buy the artist. A lot of my iTunes purchases have been single songs where I did not buy the entire album.
Now that they're creeping up in position as a distributer, I hope to see more stuff on there I usually buy in CD form. Anime soundtracks for example. If Apple started putting those up there it would bankrupt me. That and I have a hard time finding a lot of/most of the aritsts on Nuclear Blast USA http://www.nuclearblastusa.com/nb/v2/ on there. Oh well, here's to hoping I don't get screwed later cause I didn't put those apple stickers they gave me on anything.
"Quote me as saying I was mis-quoted." -Groucho Marx
If nothing else other than curiosity wonder where mp3fiesta would rank. Given the .10 cents a song price one could download 10 songs for the price of one off iTunes. Not sure how my LP's that equates to, but I am sure the RIAA is trying to hatch a plan to go back to LP's since they aren't as easy to rip to a PC as a CD is.
Wow, life must really suck for the record labels. In addition to hating their customers, they hate their biggest retailer.
In other news(which I am surprised hasn't been submitted yet), Apple is suing NYC over the use of an apple in a marketing campaign. I was expecting to see a thousand posts about litiganous Apple being at it again, and another thousand posts about the need to defend one's trademarks. Apple must have half a dozen people whose job it is to find and fight these kinds of things. Win or lose, it doesn't matter. It's the fighting that counts. And what would be the consequences if they didn't?
Life's a tale told by an idiot, full of sound and fury, signifying nothing.
Here's how to tell which is which.
If the goal is to make it the same every time it's played, it's a recording.
If the goal is to make it different every time it's played, it's music.
I find that I like music in a shallow way when I start to listen to it. After repeated hearing, some of it fades in my enjoyment and some grows.
iTunes has let me buy single songs from albums and if after repeated listens I still want to hear it, I buy the album. But I will buy the album on a CD rather than a download.
You pays your money, you takes your choice...
Yeah, I made the mistake of buying my wife a Sony Bean. I honestly didn't spend much time researching it. A fellow techie had one, said it was awesome, and recommended it. She wanted a digital music player, time was short (isn't it always when you're buying gifts for your lady?) and so I got her one.
The Bean was a great little player... the problem is, Sony's DRM, their proprietary format, and their lame program all suck. Now Sony is dumping their Connect (music store / software combo) stuff and anyone with music is screwed. Unfortunately, even though I told her not to she did buy a few albums through the store. Meh, what can you do.
This has only made me more certain of my decision to just buy frickin CDs. I can rip them to whatever I want and I can make as many backups as I want. (Yeah there are a few CDs with some form of copy protection but those still aren't as bad as DRM.)
You are using English. Please learn the difference between loose and lose; they're, there, and their; your and you're.
It's because of Apple's dominance that the labels allow Amazon to sell MP3's. Here's to hoping it continues!
I compare it to TV, where I think maybe the reason why serials are more popular nowadays is because there is so little time left for the story after the commercial that shows that are just one big long story (like Lost or Heroes) make more sense than trying to do a simple hour long drama.
If I were in the music industry, I'd be doing research on the buying patterns of people who like to buy songs from musicals. Do they buy just one song, or the whole soundtrack?
"MIT betrayed all of its basic principles."
CD singles were a joke: when albums were $8.99, a 45 was $1 to $1.49, and gave you the hit and generally a non-album B-side. When a CD album is $15.99, that $5.99 CD "single" is a rip-off.
It doesn't mean much now, it's built for the future.
The freetards can now take their cue to whine incessantly about the least restrictive DRM scheme on the planet. And even tho Apple was forced to devise DRM because of the labels, the Microsofties can rant about Apple being the "new Microsft". Bous points if somone repeatedly claims that a product and service tied to a hardware device that attained it's market share purely on merit somehow constitutes an illegal monopoly.
Fiat Homos et Pereat Theos
Amazing! At one point, it sounded like Apple Computer was trying to catch a ride name wise off of Apple Records. Now, they ARE Apple Records!!!!! (Sort of)
Aside from a very brief period months ago, all data this year indicates Walmart is the current leader. The headline that Apple is "now" the leader is simply not true, and I don't see how that can go uncorrected, but it probably will. Every tech site picked this up today. Either they all made the exact same (difficult to make) mistake, or this is an advertisement masquerading as news.
I hope you're right and Apple manages to positively influence the market. Probably some truth to it, but Brick and Mortar is still king.
You could always try something different like Japanese music. Hearjapan (.com) has loads of Japanese music non-drm. Really great artistic shit, anyways, check it out if you have the time.
You hit the nail on the head with you impulse buy comment. Most of the music I listen to I can't get at Wal-Mart or Best Buy. I could order the discs direct from the artist, but most of the time it's easier to just grab it right then from iTMS.
I haven't tried Amazons download service yet, so I don't know how well this would serve this purpose. But iTMS has a lot of the off the beaten path stuff I like.
I want to shoot the messenger!
I thought about this for a while and don't like it. Replacing the RIAA with Apple is not the equivalent of creating a free market for music. With digital restrictions, Apple will be in charge in a way that the RIAA was but worse. You say:
Apple will sell just about anything. Several talk radio hosts have regular iTunes paid downloads, and none of them have RIAA contracts.
It sounds good, but I can replace the words like this:
Future_monopoly will sell just about anything. Several talk radio hosts have regular future_Tunes paid downloads, and none of them have Apple contracts
It's the concentration of power that's evil and leads to abuse.
Oh My God, people only want to pay for the good music and don't care about the drek!
What are they doing?!? This could mean the end of crappy filler^H^H^H^Hartistic music that packs every disk since the invention of the gramophone.
As far as the comments here about 'freetards vs. drm,'remember that Apple is expert at slickly selling locked in platforms. Consumer Sheep will bend over for anything as long as it matches their shoes. Once they buy new shoes (i.e. the marker moves on) be prepared for the consumer revolt.
As far as Wal-Mart wanting $9.72 CDs, that is not about loss-leaders and getting people into the isles to buy that $30 premium collections. Wal-Mart since the Walton's left has all been about the razor-thin margin with huge volume business. Stuff sold by Wal-Mart almost defines commodity. And who doesn't want the Commiditization of the music biz? (*Cough* *Cough* EMISonyRIAA)
I have about $140(USD) left in iTunes gift cards and I'm not even buying stuff from Apple. All told I've spent perhaps $35 buying music for my gifted iPod.
For a guy self nicknamed LoudMusic you'd think I'd be more into music technology, but I just don't get it. I own an iPod and I don't use it.
No sig for you. YOU GET NO SIG!
Have you heard of iTunes Plus? No? Then investigate it and then kindly STFU.
Funny you mention Nuclear blast records (I know this is off topic). I am listening to the new Meshuggah while reading your post and writing my own. It's a great CD if you don't mind the near continuous screaming, but musically it is awesome.
I suspect that all the people who receive iPods as gifts are the primary driver of this expansion, more than the gift cards. Think about it, you get a $300 iPod for free, plus some extra cash for the holiday, what are you gonna do? That's right, go to Apple and buy all your favorite tunes!
mp3sparks.com has great selection, great price, and your choice of compression level and format. The only problem with it is that they don't have any options to fund your account, so you can't buy anything from them (at least not from North America).
Loose lips lose spit.
Still got modded down as usual though.
The twitter monologues. Click on my homepage and be amazed.
(Yeah there are a few CDs with some form of copy protection but those still aren't as bad as DRM.
WHA-WHA-WHAT?
What do you think that the copy protection is per se? Something that is not classified as DRM?
Those who live by the sword, get shot by those who live by the gun...
The only reason apple don't offer all their music without DRM is because the record companies won't let them.
Apple has done more to promote and legitimize DRM than any other company, and they have earned enormous amounts of money with DRM. Nobody forced them to do that, and nobody forced them to become filthy rich from it. Of course, they are responsible for pushing DRM.
They are allowing amazon to have DRM free music in order to try and reduce apple's marketshare and thus reduce apple's chips at the negotiation table with the record companies.
Good. I hope they drive iTunes out of business.
Some vendors of Linux distros (e.g. Red Hat) choose not to distribute Linux with the ability to play MP3s on the basis that their user base consists mainly of businesses who, potentially, could countersue them if some external party sued the business user for using a patented technology. However, those same vendors invariably explain how you can get MP3 to work quite easily on the provision that you choose to do so and the vendors that do that are a minority of distros.
So if you are going to bring up Linux in the first place, at least get your facts straight.
Gentoo Linux - another day, another USE flag.
One huge reason for Walmart's fall is their unthinkable lack of choice. If you want the top 100 pop songs from the last five years, or the top 100 pop songs from the past 20 years, then Walmart is for you. Otherwise, the only choice seems to be on-line services, like Apple's wildly popular iTunes.
Apple's sales are so high because it is simply selling a lot of music that isn't available in any Walmart - the recording industry has no idea how to sell less popular tracks in a brick-and-mortar store. So they go unsold. Stupid.
No wonder Walmart is thinking less and less of the recording industry.
no need to call anyone stupid. ipods are well designed, sleek and simply great in every way, it is apples fault for making a great product and the public for liking it so much... i think i will go buy one, no two right now. - James Patunas
I can't believe you're on about this, (he said listening to DRM free songs, downloaded from the iTunesMusicStore, on his Creative ZenStone.)
Your igorance is embarrassing.
Check you fact before spouting off with your prejudices.
MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
Have you heard about CDs? No DRM, cheaper than downloading track-by-track,
I buy a CD, I spend $15 and get 3 tracks that end up in my shuffle playlist.
I buy individual tracks, If half the tracks I buy turn out to be filler, I spend $6 and get 3 tracks that end up in my shuffle playlist.
It's the fighting that counts. And what would be the consequences if they didn't?
In NYC? Do you need to ask? The same old stuff. "Human sacrifice, dogs and cats, living together... mass hysteria!"
It's always the animals that suffer.
Not unless such a "P2P" effort is at least seeded by the labels themselves.
Don't thank God, thank a doctor!
Eventually, they will get bitten when they change computers a few times, find that they've used up all their iTunes licenses because they never bothered to de-authorize their old computers, and now have to call Apple support for help because their music won't play anymore. Random issues like this will present roadblocks, and the solution is inevitably to convert any DRM'd content to standard format and stop buying the DRM'd content. I know several relatively un-geeky people who regularly shopped from the iTunes Store and were bit by this, and have now learned their lesson. Ultimately, everyone will discover that DRM sucks, and that they should avoid it if possible.
"I like systems, their application excepted", George Sand (French)
I get $0.87 to every $0.99 download, and all I did to get my independently released tracks on iTunes was register with a distributor, who handles it all for only a piece of that 12 cents.
"I understand my tests are popular reading in the teacher's lounge." -Calvin to Hobbes
- pressing a disk
- printing cover art
- transporting to a store
- shelf space for inventory
- price markdowns when you make too many
- lost sales when you make too few
- paying staff to stock the shelves, run the register, and look down their noses at you when they don't like your choice of music
Surely the margins on digital sales must be way higher than physical CD sales? Once you cover the fixed costs of setting up a server, the only incremental costs you incur are bandwidth charges for the web access.I have. The selection is sucktastic. Get back to me when they have more than one label on board
You'll have to ask the studios about that since they have publicly stated they are only DRM free on Amazon to try and hurt sales on Apple's store.
Eventually they'll realize they are just hurting sales and give in, but consumers can give them a push.
"There is more worth loving than we have strength to love." - Brian Jay Stanley
I suspected that might be the case. When you're able to pick from the best albums of the past 50 years you get a different view of the medium than if you're buying recent music. Albums that only have a couple of decent tracks don't even show up on your radar.
I'm not an "album person". I've bought a couple of full albums on iTunes with their "Complete My Album" offer, but it's not common. Mostly I hear a song I like and I buy that song and a few other tracks from the same album that appeal to me. If I had to buy the whole shebang, I probably wouldn't bother buying anything nearly as often.
Also I suspect that a lot of tracks I think of as filler are an integral part of the album for you... it may be a matter of how you feel about a track that isn't intended to stand on its own: I rarely play two tracks from the same album in sequence, let alone playing through an album in sequence.
Why hasn't this article been tagged "Ha Ha" yet? Apple haters are getting lazy. ;-)
-- My apologies if the above facts contain any opinions, or vice versa! --
There's plenty of tracks in iTMS that are DRM free. There's plenty of music stores (like bleep.com) that sell in DRM free formats.
I find it really embarrassing that a geek site like Slashdot is full of people who use the excuse that Apple sell some DRM music to make political statements rather than technical arguments. If I wanted that shit, I'd read the comments in the WSJ.
lemonade was a popular drink and it still is
Some of those are availble DRM-free and CHEAPER from eMusic - http://www.emusic.com/
Side-note - "Challengers" by New Pornographers was one of the most disappointing albums of last year for me.
But my real problem is with DRM, whether it's with Blockbuster renting DRMed DVD movies or the DRMed portions of iTunes. To me, DRM can only be bad for the consumer because it will ultimately turn everything into a rental model to screw more money out of everyone.
That's why I love the fact that competing DRM schemes make things hard for the consumer right now and keep the fact that there's DRM on the music right now in everyone's face. The last thing we want is for DRM to be mostly invisible and ubiquitous like CSS, no, I wish Microsoft would come up with a THIRD DRM scheme... "plays-for-sure-fooled-you" and Zune isn't enough. Think how sucky things would be without Apple, if everyone was using protected WMA and it "just worked" on everyone's music player.
And of course the fact that Apple's DRM is no stronger than "honor system" is an additional bonus. It keeps reminding people that copy protection sucks, but at the same time it doesn't inconvenience me. Double win!
Well, in the case of the Sony Rootkit I'd say it's a device to crush your PC's will to live.
You are using English. Please learn the difference between loose and lose; they're, there, and their; your and you're.
i don't like this either. - Braldy C Stark