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iTunes Popularity Surging in U.S. [UPDATED]

Tuesday, February 27th, 2007 at 4:10 PM - by

WebSiteOptimization reported on Monday that, starting from zero in 2004, the number of iTunes unique PC users in the U.S. has grown to over 27 million customers and the growth rate is 47.5 percent.

This compares with two percent growth by Windows Media Player users and about nine percent by RealPlayer.

The report, which did not mention the relative number of songs purchased by the users, focused on streaming media player unique users vs. iTunes customers. "At current growth rates, iTunes should pass RealPlayer in unique users by the second quarter of 2007. Apple should be whistling a happy tune this year. While iTunes continues to show strong double-digit growth rates, Windows Media Player growth appeared to slow over the past year." the report concluded.

The suggestion is that Apple's momentum with iTunes and their model of download-to-own is rapidly gaining favor with PC users.


Unique Users Growth over Time in Europe

Author's note. The original story mistakenly referred to the growth of users in Europe. In addition, the chart, according to Andrew King of WebSiteOptimization.com only refers to PC users which explains the start of growth from zero in January 2004, about the time the iTunes store for PCs was launched.

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gslusher said:

member since 13 Nov 2002 with 2088 posts, unranked, send him a message or view his profile

Tue Feb 27, 2007 8:08 pm

Growth rates are very deceptive unless one knows the basis. Yes, iTunes' use has grown, but there may not be any justification to extrapolating the trend. Now, if the usage of Windows Media Player starts going DOWN, that will be real news.

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rwahrens said:

member since 19 Jul 2006 with 50 posts, unranked, send him a message or view his profile

Wed Feb 28, 2007 10:13 am

This is interesting news, given that the EU members are slamming Apple for their "uncompetitive" and "locked in" business model. I wonder if public opinion will moderate those efforts?

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A guest said: (hide)

Wed Feb 28, 2007 2:31 pm

rwahrens wrote:
This is interesting news, given that the EU members are slamming Apple for their "uncompetitive" and "locked in" business model. I wonder if public opinion will moderate those efforts?

Different issue. The article here is confused and confusing, as it addresses iTunes Store sales when the referenced report had nothing to do with iTunes Store sales. John draws an inference from the report that is unsupported by the report, itself.

"While the iTunes store holds significant market share in the U.S., about 70 percent, iTunes has had to battle against in-place competition in Europe when it launched in 2004."

Yes, but that has nothing to do with the report.

"The report, which did not mention the relative number of songs purchased by the users, focused on streaming media player unique users vs. iTunes customers. 'At current growth rates, iTunes should pass RealPlayer in unique users by the second quarter of 2007."

So, first, John writes about iTunes Store sales, then admits that the report doesn't address online sales at all. It addresses streaming media accessed by broadband users. There's no mention of the iTunes Store in the report. (Go to the report page and search for "store." That word is not there, nor are "download" or "song.")

"The suggestion is that Apple's momentum with iTunes and their model of download-to-own is rapidly gaining favor in Europe."

There's no such "suggestion" in the report. It doesn't address downloading songs to own or rent, just streaming media. There may be a connection, but the report didn't make it. Perhaps John wants to make a point, but that should be labelled as his opinion, not an inference or "suggestion" from the report.

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gslusher said:

member since 13 Nov 2002 with 2088 posts, unranked, send him a message or view his profile

Wed Feb 28, 2007 2:34 pm

The above is mine. Got hit, again, by the change in the iPodObserver forums. There are two different modes of access, one of which requires logging in or typing a graphics-based word, the other which does not and doesn't even give an easy way to log in on the same page.

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engrish said:

member since 21 Oct 2005 with 39 posts, unranked, send him a message or view his profile

Wed Feb 28, 2007 8:52 pm

There must be a misunderstanding, the report is not about iTunes store sales, nor about iTunes' use in Europe.

In March 2006 WebSiteOptimization published a similar story and it was stated that the number of iTunes unique users in January 2004, before the launch of iTunes in Europe, was about 1.12 million. Note that iTunes was supposed to surpass RealPlayer in 2006: "Despite its late entry into the streaming media arena, Apple's iTunes player is climbing the charts faster than its competitors. iTunes has eclipsed QuickTime in unique users, and should pass RealPlayer in mid-2006 at current growth rates." Now we're told that it will eventually happen this year.

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gslusher said:

member since 13 Nov 2002 with 2088 posts, unranked, send him a message or view his profile

Wed Feb 28, 2007 10:03 pm

engrish wrote:
There must be a misunderstanding, the report is not about iTunes store sales, nor about iTunes' use in Europe.

In March 2006 WebSiteOptimization published a similar story and it was stated that the number of iTunes unique users in January 2004, before the launch of iTunes in Europe, was about 1.12 million. Note that iTunes was supposed to surpass RealPlayer in 2006: "Despite its late entry into the streaming media arena, Apple's iTunes player is climbing the charts faster than its competitors. iTunes has eclipsed QuickTime in unique users, and should pass RealPlayer in mid-2006 at current growth rates." Now we're told that it will eventually happen this year.

That is what I said. Read the "guest" message above my last one, starting wih, "Different issue." That was my message.

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