My guess (as I haven't seen the articles mentioned) is that the growth of downloaded music is generated primarily by a small segment of the population, i.e. those 25 and under. The biggest obstacle to those in the music download business, will be to find a way to sell that method of music buying to all demographics. For example, my 70 yr. old parents, will buy a CD, but they're not going to download anything. When that "25 and under group" becomes the "50 and under group", the download business will be sitting pretty. But until that occurs, I think a strong market will remain for over-the-counter music sales.
Digital music sales to outpace CD sales
My local paper reports “sales of physical music media (CD) are expected to fall 8 percent to 10 percent this year, while sales of digital music could climb 150 percent to 200 percent. Digital music downloads will not destroy CD sales overnight but something is clearly changing in the music industry. In the third quarter, Apple’s iTunes Music Store made it the seventh-largest music retailer (according to NPD)”. The NPD Group (sales & marketing firm), founded in 1967, provides global consumer and retail information that helps manufacturers and retailers make more informed, fact-based decisions in order to optimize their businesses.
Based on this article, it implies many new customers are moving "more toward" digital music and not CD music. Revenue record labels are also losing as CD sales decline. If one looks ahead 5 years, what happens to CD music? Will digital music improve so much that it will sound better than CD music? Are there plans in the works to make digital music sound better than CD music? Do you have any comments?
Based on this article, it implies many new customers are moving "more toward" digital music and not CD music. Revenue record labels are also losing as CD sales decline. If one looks ahead 5 years, what happens to CD music? Will digital music improve so much that it will sound better than CD music? Are there plans in the works to make digital music sound better than CD music? Do you have any comments?