Music sure sounds sweet- to Apple and to Wal-Mart

Apple reported today that the number of songs purchased from iTunes exceeded 5 billion- yes FIVE billion. That is nearly $5 billion dollars at probably high gross margins for Apple. Industry reports place Apple in first place as a music retailer.

Wal-Mart is the one facing the most heat from this, as its CD sales are declining and its music download store is not exactly challenging iTunes. So, rather than doing what it did with its online DVD rentals business, i.e. closing down shop when the business floundered against Netflix, Wal-Mart is now getting into the music distribution business, trying to cut out the middle person and bring the artists' music directly to the consumer without the labels.

There was an article today in the press about people cutting down on $4 Starbucks lattes and becoming thriftier. Will this behavior have any effect on music purchases? Stay tuned!

Every silver lining has a touch of grey................The Grateful Dead.