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
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
Apparently the concept of the market rejecting DRM is overblown?
The more you regulate a company, the worse its products become.
Who actually buys stuff from Wal-Mart?
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...
Albums are discounted to an extent. For any album with more than 10 tracks, you're still paying $9.99 (with few exceptions) for the album. If you download a few tracks and want the whole thing later, you do not pay for the same tracks twice. It used to be that way on iTMS and it was as annoying as hell. Sometime in the last year or two, iTMS was updated to let you "fill out" the rest of the album.
As for you second comment...you can use playlists to keep albums in order. When you want to randomize playback in iTunes or with an iPod, you can have it "randomize by album" instead of randomize all songs. That way, an entire album will play back, but the next album selection will be chosen at random. Also, you can move a slider in the preferences menu to play "similar" songs more often together when you use random playback.
Bill Clinton: Pimp we can believe in. - The Shirt!!!
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.
I buy DRM free from iTunes. It's called iTunes Plus.
`fortune -o`
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.
Have you heard of iTunes Plus? No? Then investigate it and then kindly STFU.
Yeah, they are also one of the few to push selling DRM-free music. So how does that fit in with your little conspiracy theory? Do you honestly believe that Apple would still sell DRM music if the music labels didn't require it?
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.
I just checked the ten most recent albums I've bought to see how many of them are available through iTunes Plus PJ Harvey, White Chalk - NO Kathleen Edwards, Asking for Flowers - NO Rilo Kiley, Under the Blacklight - NO You Say Party We Say Die, Lose All Time - YES The New Pornographers, Challengers - NO The Kills, Midnight Boom - NO The Killers, Sawdust - NO Besnard Lakes, Besnard Lakes Are the Dark Horse - NO Marissa Nadler, Songs III - NO Keren Ann, Keren Ann - YES That's only 20%. 100% are available from Amazon DRM free. Conclusion - iTunes Plus is an inferior store for anyone who doesn't want to be locked in to iPods.
Les Miserables Volume 1 now up with my reading of
Les Miserables Volume 1 now up with my reading of
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
That's bullshit. There have been several companies trying to sell DRM-free music. Apple started offering it because those pioneers forced them to.
They didn't force Apple to do anything because I'm not aware of any other successful DRM-free ventures and Apple were already doing well with their DRM stuff at the time. It was never any benefit for Apple to have DRM -- they don't need to lock people in as they seem to have no trouble selling iPods based on their good points alone.
Do you honestly believe the labels would insist in selling with DRM if companies like Apple didn't give them a big profit?
I think the big record labels would insist on DRM no matter what until someone proves them wrong and drags them kicking and screaming into the 21st century, like Apple is help doing.