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Amazon gains against Apple's iTunes in music downloads

Published on Apr 17, 2013 1:32 AM

SAN FRANCISCO (REUTERS) - has grabbed more than a fifth of the market for digital music downloads, helped by the launch of its own tablet computers and aggressive pricing, according to an industry study released on Tuesday.

AmazonMP3, the online retailer's digital music business, had 22 per cent of the market for music downloads in the United States in last year's fourth quarter, the research firm NPD Group said in its Annual Music Study. That compares with 15 per cent in 2011, 13 per cent in 2010, 10 per cent in 2009 and 7 per cent in 2008.

Apple's iTunes store, which turns 10 years old on April 28, was still dominant with 63 per cent of the market in the fourth quarter of last year. But that was down from 68 per cent in 2011 and 69 per cent in 2009, according to NPD.

"Amazon's entry into tablets probably helped," said Mr Russ Crupnick, senior vice-president, industry analysis, at NPD.

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