iTunes Makes Top Ten List of Music Retailers in U.S.

Apple’s iTunes Music Store is fast becoming the top spot for music purchases in the U.S. according to the NPD Group research firm, edging out Tower Records, Sam Goody, and Borders between July and September of this year. And is showing no signs of letting up soon.

“With the growing interest in digital music, forecasts of more iPod demand this holiday, plus the stocking-stuffer appeal of iTunes gift cards, we can expect Apple to increase its share even more by year’s end,” said Russ Crupnick, music and movies industry analyst for the NPD Group, in its November 21 report.

This is the first time a virtual music store has cracked the top ten. During the same time period last year, iTunes came in fourteenth place overall – a huge leap which illustrates the increasing trend of users turning to their computers instead of the mall to purchase their music.

Top Ten Music Retailers in the United States (July-September 2005) as compiled by the NPD Group:

1. Wal-Mart
2. Best Buy
3. Target
4. Amazon.com
5. For Your Entertainment
6. Circuit City
7. Apple iTunes Music Store
8. Tower Records
9. Sam Goody
10. Borders

*Rankings based on counting 12 songs per album to compare online sales with physical CDs and singles.