Research from The NPD Group is showing that Apple's iTunes music store is more popular than many peer-to-peer file-sharing services like Kazaa, and is drawing as many users as LimeWire.
According to the market research company's MusicWatch Digital service  , the most popular digital music service in March was WinMX, which was used by 2.1 million households to download music.
LimeWire and iTunes tied for second place, with other music services like Napster and Real Networks in the top ten, alongside P2P services like iMesh and Kazaa.
Market Shift
The report highlights a shift in the online music service sector, the NPD Group noted, with paid download stores now competing head-to-head with free P2P download services.
"These digital download stores appear to have created a compelling and economically viable alternative to illegal file sharing," said Russ Crupnick, president of the NPD Group's music and movies division, in a statement.
Although the report noted that younger Internet users are more likely to use P2P services, there is awareness in that demographic of the legal issues surrounding such downloading.
Sweet Sounds
Another trend shown in the report is the increase in legal downloading done by consumers over 30 years old.
In total, about 4 percent of Internet-enabled households in the U.S. used a paid music download store in March, with the majority of individuals over 30.
These consumers in particular are more likely to be deterred by the recording industry's antipiracy litigation efforts, the report noted.
Being Legit
Having iTunes become as popular as P2P services is not too surprising, said IDC analyst Roger Kay.
"Apple has put a lot of effort into promoting iTunes, and building that brand," he said. By comparison, LimeWire and Kazaa are known to tech-savvy Internet users, but certainly are not featured prominently in advertising the way that iTunes and the iPod are.
Also, with the spate of lawsuits surrounding piracy, many users have been drawn to music services that they perceive as being "legitimate."
"The suits, especially against individuals, has brought many people to services like iTunes," said Kay. "But that doesn't mean they still won't look for free music online."
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