Android Vaults Amazon MP3 Sales

May 26 2010, 12:01pm CDT | by Jordan Cressman

In less than 2 years, Amazon MP3's market share of digital music sales has tripled, and it doesn't take a genius to realize that the built-in Amazon MP3 app on all Android phones has helped Amazon in a big way.
Amazon MP3 is now the #2 online music store, but it's only reaching one-sixth of the iTunes audience. Apple's store has a 69.9% market share, while Amazon is at 11.6%, according to Fortune.

But that still places Amazon well above the rest of the herd. Other services, like Napster, Rhapsody, and Microsoft's Zune Store, are all grabbing less than 2% of the market share.

Amazon was in that bucket itself just a couple years ago. In 2008 its MP3 market share was around 4%. Then the G1 launched, the first Android phone, which has a very prominent Amazon MP3 app that serves as the primary way to purchase music on the phone.

Now, Android handsets are outselling iPhone handsets, and Amazon MP3 is feeling that wave. Fortune points out that Amazon does not release any numbers pertaining to its MP3 sales, but it's obvious that Android is giving it a boost.

With its strong presence in digital and physical (CD) music sales, Amazon is also doing well on the global music market, when all mediums are accounted for. It takes 12% of all music sales in the country, regardless of the format. That puts it in a tie with Wal-Mart, which remains the top seller of music CDs in its stores. However, even in this statistic, iTunes still wins. Its domineering digital sales presence makes it account for 28% of all music sales.

Amazon MP3 is now the #2 online music store, but it's only reaching one-sixth of the iTunes audience. Apple's store has a 69.9% market share, while Amazon is at 11.6%, according to Fortune.

But that still places Amazon well above the rest of the herd. Other services, like Napster, Rhapsody, and Microsoft's Zune Store, are all grabbing less than 2% of the market share.

Amazon was in that bucket itself just a couple years ago. In 2008 its MP3 market share was around 4%. Then the G1 launched, the first Android phone, which has a very prominent Amazon MP3 app that serves as the primary way to purchase music on the phone.

Now, Android handsets are outselling iPhone handsets, and Amazon MP3 is feeling that wave. Fortune points out that Amazon does not release any numbers pertaining to its MP3 sales, but it's obvious that Android is giving it a boost.

With its strong presence in digital and physical (CD) music sales, Amazon is also doing well on the global music market, when all mediums are accounted for. It takes 12% of all music sales in the country, regardless of the format. That puts it in a tie with Wal-Mart, which remains the top seller of music CDs in its stores. However, even in this statistic, iTunes still wins. Its domineering digital sales presence makes it account for 28% of all music sales.

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