Port Washington, N.Y. – Despite the rapid proliferation of
paid applications and games available for purchase from Apple’s (NASD:  AAPL) iTunes Store, more
than half (56%) of iTunes users say they purchase music exclusively, according
to a survey conducted by market research firm NPD Group. While virtually all
iPhone and iPod touch users have downloaded a free app from Apple, 82% report
having paid for music on iTunes.

"Sales growth in digital music has been
slowing, and some of that decline might be related to the distraction from
apps; however, iTunes shoppers are still completely engaged with music, whether
it’s about listening, discovering or buying," said NPD Group analyst Russ

"Apps and video certainly do compete for consumer dollars, but
they can also be used to promote music and re-energize digital music and video
download sales."

The online survey of 3,862 respondents also found that
two of three iPhone/iPod touch users who have downloaded free apps report using
them regularly, while 69% who have never paid for an app said they are
interested in possibly doing so in the future.


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