updated 05:20 pm EDT, Mon April 6, 2009
Amazon catching iTunes
The NPD research group found that 87 percent of digital music buyers in the US last year used iTunes to download music, while 16 percent used Amazon's MP3 store, with some evident crossover among them. NPD's music tracking service performed the study which shows the store growing significantly faster than other iTunes competitors have in the past.
Amazon MP3 found a niche market as its audience is older overall than the average iTunes shopper, says NPD analyst Russ Crupnick. This is good, he adds, as they still tend to buy CDs and therefore aren't battling directly with iTunes. They will share some customers with iTunes, which will help the company grow.
Apple is attempting to cash in on the success of its iTunes store, as it's bumping up prices on Tuesday. Songs are priced at between 69 cents and $1.29 depending on their age and popularity, and Crupnick says NPD will watch the effect this will have on sales closely, doubting that it won't harm sales. [via CNET]