Study: Digital Won't Replace Lost CD Sales Any Time Soon
NEW YORK -- November 21, 2007: A new study from Jupiter Research has found that, though digital music sales will continue to grow over the next five years, those sales won't be enough to offset the loss from declining CD sales.
In five years digital will account for more than one-third of music sales, says Jupiter, with spending on digital music rising to $3.4 billion by 2012. But with CD sales continuing to fall, "That means digital music sales will not compensate for lost CD sales in five years," said Jupiter VP/Research Director David Card. "Nor will they return the overall industry to growth. But that's where the growth is."
Downloads will be replacing CD purchase for "many -- but not most -- music buyers," according to the report, while Napster- or Rhapsody-style subscription services "will appeal primarily to niche audiences."
