In theory, Amazon MP3 sales should be beginning to dominate iTunes, in that all four major labels are DRM-free on Amazon, and Amazon’s also marginally cheaper. Yet, Gizmodo reports that only 10% of Amazon MP3 users are iTunes defectors, which, combined with iTunes’s recent leap to #1 music retailer in the US, would seem to imply that iTunes has not faced a challenge from Amazon. Yet, that’s not the whole picture. According to a recent Fortune profile, Amazon makes two-thirds of its sales through albums, wheras only one-third of iTunes purchases are album-based.
What does that all mean? It probably means that the legion of people who are fundamentally opposed to all things Apple—and lord knows, there are many—are more likely to use Amazon. I also bet you that a majority of that 10% is more of an album-purchasing crowd. Still, in a singles-based industry—and one where iTunes has access to independent as well as major labels, iTunes will probably stay on top, even with the general nuisance of DRM restrictions.