NPD: iTunes to replace Wal-Mart as top music retailer this year
Following a report earlier today that iTunes has become the second-largest music retailer in the US, a NPD executive has said that the store will likely knock Wal-Mart from the top spot later this year. “Digital sales were up close to 50 percent and CD sales were down 20 percent last year,” said Russ Crupnik, president of music for the NPD Group. “Even at half that growth rate in digital sales, Apple will in all likelihood catch Wal-Mart this year.” Crupnik went on to say that Apple has done a better of job of retailing than its competitors, especially in its efforts to attract teenagers. Since many teens lack credit cards, iTunes Gift Cards, which can be purchased at retail locations, allow them to purchase music online when their lack of a credit card might prevent them from buying from a competing store. “That’s the question that the music industry has to answer soon,” Crupnick said. “How do we get young people to start paying for music again? They’ve got to make it easier for teens to buy online. Apple CEO Steve Jobs has done a wonderful job of this. Teens have a way to do commerce with iTunes.”
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