iTunes accounted for 66.2 percent of the paid digital music download market in the third quarter, up from 63.2 in the year-ago quarter, according to the latest data from NPD. Citing the data, the Wall Street Journal reports that Amazon’s share of the market rose to 13.3 percent over the same period, up from 11 percent the year earlier; however, record label executives note that the disparity between the two may be even larger, with with Amazon holding only 6-10 percent of the market in any given week, with Apple closer to 90 percent.
The report suggests that Amazon’s “daily deal” albums may be responsible, and, citing people familiar with the matter, claims that Amazon normally pays full wholesale price for those albums — normally $7 to $8 — and eats the difference between the wholesale and $3.99 discounted price. Notably, the report also claims that digital album downloads have risen 13 percent this year, compared to a 0.3 percent gain for individual song downloads, and a 20 percent drop in CD sales.
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