Music Grows, CDs Decline

• Posted: Tuesday, March 04, 2008
• |
• Author: pradhana
• |
• Filed under: Digital Content

Though the overall amount of music consumed in 2007 grew 6%, CD sales continued to decline, resulting in a net loss of 10% in music spending, according to figures released by NPD Group.

Digital sales grew strongly, particularly among baby boomers. NPD estimates 29 million people bought digital music in 2007, up from 24 million in 2006.On the flip side, teens are driving CD's to the graveyard. In 2007, 48% of teens did not buy a CD, up from 38% in 2006.

Meanwhile, file sharing has leveled off at 19% of Internet users. But the number of files each user downloaded has increased.

“With so many baby boomers and gen-Xers entering the market, there are certainly opportunities to sell more digital albums, promote older catalog titles, or create bundles that will raise revenues," said Russ Crupnick, analyst at The NPD Group. "In the near term that’s going to be the best means available to narrow the gap on dwindling CD revenues.” [eMarketer]

• Permalink
• RSS 2.0
• 
• 
• 
• 
•