Apple’s iTunes is by far the dominant player today in digital downloads, not just for music but increasingly for video and other media. It’s widely accepted that the tight integration of the iTunes service with Apple’s range of digital media devices has been critical to the company’s market leadership.
But Strategy Analytics research suggests that even with its current dominance, Apple cannot afford to rest on its laurels. In our UK broadband user survey, people are still more likely to choose Amazon as the place to visit for digital media downloads. Even for digital music, 26% of broadband users say they would prefer Amazon to iTunes. The gap is wider in video (Amazon 16%, iTunes, 11%) and games (Amazon 16%, iTunes 5%).
These findings demonstrate that leadership in the early stages of a market do not guarantee long term dominance. Amazon is clearly a much more powerful retailer than Apple and if it executes successfully in its online media strategy it should become a serious challenger for the number one position.
Twitter:
twitter.com/dmercer15
Client Reading:
Digital Media Survey: United Kingdom - Country Profile