• by Wendy Davis , Staff Writer @wendyndavis, October 8, 2008

Many consumers still largely think Apple's iTunes is the best place to purchase music downloads, but Amazon and Rhapsody have jumped in popularity from last year. That's according to the new annual TEMPO report, issued today by Ipsos.

Fifty-seven percent of 1,249 downloaders surveyed by Ipsos said Apple was the best music store, up from 50% last year. But 9% said the same about Amazon, a newcomer to the digital download business. And 7% thought Rhapsody was the best place to shop for music downloads, up from 4% last year.

Given the advantages Amazon's platform has over iTunes, Amazon's popularity is bound to increase over time. Consider, Amazon not only sells tracks free of the DRM software that limits people's ability to transfer their music, but many tracks are priced at 89 cents, which is 10 cents less than iTunes.

Amazon's inroads with consumers in just one year also demonstrate that the market can still accommodate new entrants. That's good news for Best Buy, which purchased Napster for $121 million. Eight percent of those surveyed thought Napster was the best place to purchase digital downloads; while that's down from 10% last year, it shows the brand is still competitive with Amazon and Rhapsody.

The report could also signal good news for EMI, which just said it plans to open its own online music store by the end of the year, according to The Financial Times.

For now, Apple's iTunes is able to hold onto users' goodwill with its consumer-friendly features like easy integration with iPods, and its vast library of more than 8 million tracks.

But the company's popularity is bound to decrease as more and more people realize they can easily get music without DRM through sites like Amazon.