Amazon Gains on Apple in Music Retail

Amazon_MP3_Store.jpgAccording to new report from NPD Group, Apple’s iTunes store remained the number one music retailer in the first half of 2008—that won’t change anytime soon—but the launch of Amazon’s MP3 Store has helped the venerable online retailer jump one spot to number four, PC Magazine reports.

NPD Group currently lists the top five music retailers (physical, digital, or otherwise) as: iTunes, Wal-Mart, Best Buy, Amazon, and Target. Interestingly, the report said that Amazon sells more physical CDs than target too, so that also helped, although Amazon’s MP3 Store is still running in the single digits in terms of digital sales. Amazon is currently exploring other distribution options, including one with MySpace and some global initiatives, to cement their gains.

“Amazon’s CD buyers tend to be older, so they haven’t abandoned the CD format to the extent seen in the average music buyer,” Russ Crupnick, NPD’s entertainment industry analyst, said in a company statement. “Plus Amazon’s successful introduction of its digital download store will help the company improve its position in the future.”