The digital music revolution is definitely here, all you need to do is look around and it seems that everyone is using an iPod or other PMP device. Digital tracks have quickly outpaced traditional CD sales and online digital music sales have skyrocketed.

Back in February we reported that Apple’s iTunes store was the second largest music retailer in the United States. Apple announced this week that it was now the top music retailer in America, surpassing Wal-Mart.

A recent report by the NPD Group shows that Apple iTunes has moved into the 3rd position for music retailers in the U.S., beating Amazon.com out of the #3 spot.

The report surveyed 40,000 people to find that in the first quarter Apple carried a 10% market share trailing Wal-Mart with a 15.8% and Best Buy with 13.8%. Both Wal-Mart and Best Buy sell a majority of their music as physical CD’s, but the study also noted a decline in CD sales while digital music sales overall continues to rise.

Even …