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eMusic hits No. 2 in digital music sales, thanks iPod

eMusic, a seemingly small-time digital music service that sells DRM-free MP3s of independent artists, has quietly overtaken other big name rivals such as RealNetworks, Yahoo! and even Napster for the #2 spot in digital music sales. The company attributes its success largely in part to the iPod's widespread popularity and the fact that MP3s play just fine on it, but also says "the consumer confusion over interoperable formats gives us a great advantage". In other words: the tower of babel that is the digital download industry has opened the door for a service that speaks everyone's language to snag the second largest piece of the pie. While not everyone is happy with 2nd place, eMusic seems to be enjoying their 11% of the industry, right after the iTMS at 67%, but way ahead of Real Rhapsody with 4%, Napster - 4% and MSN Music - 3% (data according to NPD Group).

[via iLounge]

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