iTunes is perhaps the most famous digital music store in the world. Apple’s music service which was launched months before the first iPod, and has rapidly expanded its services since its announcement. According to Asymco’s Horace Dediu, the average iTunes user spends around $12 per year on music, and if you multiply that by 575 million, which is the number of active users on iTunes, that means that the service makes an astonishing $6.9 billion yearly.
If Dediu’s number of $12 per year is correct, this means that Apple’s iTunes service controls a whopping 75% of the digital music market worldwide. The rest of the music market is most likely divided among Amazon, Pandora, and Spotify. It is also possible that Apple could increase its impact in the digital music market with the introduction of iTunes Radio, which in addition to offering streaming, will also place links for users to download music straight from the radio player.
As an iTunes user, I am actually surprised that iTunes is only 75% of the market. I used Amazon’s music service for one album, but I’ve always preferred iTunes, and just assumed that most other music downloaders used it too, although I didn’t account for streaming services. Are you an avid iTunes user? Did you expect iTunes’ marketshare to be higher or lower?