Amazon is growing its share of the digital music download market but not at the expense of ITunes. According to NPD Group research data, ITunes has 66% of that market and Amazon has 13%. Growth may be coming instead from album sales, which dropped by 12% for 2010, according to WSJ.com. CD sales dropped by 20%, but digital album sales grew 13%.
A few artists have decided to forego selling individual songs on ITunes and insist on album sales instead. Billboard says this formula just might be working out for Kid Rock. He’s not selling his new album “Born Free” or the songs on it on ITunes. Billboard thinks he may have sold more, by a lot, by sticking to his guns, generating an estimated $3.3 million more by only selling his album in its entirety.
AC/DC and Garth Brooks are two other artists/groups that have refused to play the single song download sales game with iTunes, opting instead to only sell albums. No word on how it is working out for them.
Meanwhile, Amazon continues to try to put a dent in ITunes share of market by offering deep discounts of albums, something that may actually endear them to artists and labels by placing emphasis on album rather than song sales. They are known to absorb the price difference between the sale price and wholesale price, so it doesn’t harm actual revenues and it helps unit sales. It’s a strategy that worked for Kid Rock…