Apple’s iTunes has surpassed Wal-Mart to become the number one music retailer in the U.S. according to the NPD Group.

Apple now has 19 percent of the market and Wal-Mart has 15 percent including both online and brick-and-mortar sales.

Best Buy holds the third spot with 13 percent, followed by Amazon.com with six percent.

Physical CD sales have dropped dramatically as the music industry adapts to the digital world. NPD reports that close to half of all teens in the U.S. did not buy a single CD in 2007, up from 38 percent in 2006.

Apple said its iTunes Store has sold more than four billion songs, has 50 million customers, and has the largest music catalog with more than six million songs.

“We launched iTunes less than five years ago, and it has now become the number one music retailer in the world,” said Eddy Cue, Apple’s vice president of iTunes. “We are thrilled, and would like to thank all of our customers for helping us reach this incredible milestone.”

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