Is The Online Music Industry In Trouble?

I have been watching the online music industry very closely over the last year or so, especially now I have a new music product launching into the market within the next few month (RouteNote).

It appears that iTunes have such a strong stranglehold on the market and there is no one that can get close let alone challenge.

Summary of Key Events Recently:

• CDBaby released their sals figures for 2007 so far and 81% of their sales were from iTunes properties.
• AnywhereCD going out of business
• Virgin to Close USA and UK Download Stores: October 19

Additionally it was reported at the beginning of the year that Sony Connect would also close their download store at the end of 2007.

This seems to show how much iTunes are just controlling the market at present with no real competitor and major brands trying to enter the market and grab a share are just getting sent packing.