I find pleasure in downloading music to my computer and portable digital music player. In fact, I can’t recall the last time I has been at a music retailer. I’m a convert. I prefer listening to music samples on the Internet and buying only the songs that I want and not wanting to buy an entire disc where I can like only a few song tracks. This is the reason why iPods from Apple computer Inc. (AAPL) have grown exponentially in popularity to the current cult status. A friend of mine received a 30GB iPod for Christmas and trust me you’ve never seen someone so excited.
A 30GB iPod can hold up to 7,500 CD  quality songs. That is impressive. Apple is a trendsetter in my estimation. From its MAC to the iPod, CEO Steve Jobs has a keen knack for trends. These portable music devices have so much memory because he might expects a massive shift to CD  burning and downloadable music. Apple’s iTunes Music Store is booming.
Just last week, the International Federation of the Phonographic Industry released its research into the digital music business and the results weren’t a surprise. Just like how Web DVD movies have dominated the video rental market, dominated by Netflix Inc. (NFLX), and pushing incumbent Blockbuster Inc. (BBI) to the sidelines, the exponential growth of the Web music business has been on an explosive upward path.
According to the research, sales of digital music world broad  improved by over 300  percent in 2005 to $1.1 billion. The research said digital music accounts for about 6  percent of total music sales, up from decidedly little two years back.
The competition in the industry is fierce and expected to ramp up going forward. This can guide to consolidation in the industry down the road and result in reduce prices.  all of us  can see the bigger and more established players taking out the smaller up and comers.
Besides Apple, there are a slew of Web music web site s. Probably the the majority well known is Napster Inc. (NAPS). Napster reported it has over 500,000 subscribers but has yet to turn a profit and is not expected for the time being. But the company has minimal debt and a whopping $128 million or $2.91 per share in cash. Given that the current share price is 3.08, this implies you are paying a mere $0.17 for the company’s asset and potential. This is pretty wonderful and enticing for speculators, but then Napster must deliver profits. Napster can be the dark horse in the digital music business.