iTunes Store Rated 2nd Largest Music Retailer

iTunes is soaring in numbers according to tracking firm NPD Group. A new report shows Apple’s iTunes digital music store edged out Best Buy and Target to become the second-largest music retailer in the United States.

Wal-Mart still ranks #1.

With over 50 million customers, iTunes has sold more than 4 billion songs according to Apple.

Based on 2007 sales, legal music download sales now account for 10 percent of music acquired in the United States, but the significant increase failed to offset a fall in physical CD sales, NPD said.

Legal digital music downloads rose sharply in 2007. Interestingly, there was also a 10 percent decline in overall music spending — most likely because online digital music retailers offer consumers the minimal ability to purchase single songs in place of entire albums.

NDP states that 10% of all music purchased in 2007 was legally downloaded via sites such as iTunes or Amazon. The number of consumers who legally downloaded music soared to 29 million consumers, whereas previous sales figures placed that number at 24 million.

Sales growth can largely be attributed to consumers ages ranging from 36 to 50, which also happened to purchase a large number of digital music players in the same year.