Digitial not enough
Posted by T Rex on November 20, 2007
Digitial music is just one piece and this report proves the dinosaurs (labels) need to focus on other divisions and not rely on digitial to save them.
A new report from JupiterResearch titled “US Music Forecast, 2007-2012” says digital spending will grow to $3.4 billion over the next five years, while CD sales will continue to decline.
In 2006, US digital music sales grew over 30 percent, surpassing $1 billion for the first time. That’s still a pretty small market compared with the declining $9.6 billion CD business, but digital music is where the growth is.
“That means digital music sales will not compensate for lost CD sales in 5 years,” said David Card, Vice President and Research Director at JupiterResearch. “Nor will they return the overall industry to growth. But digitalis where the growth is.”
“The music download business will serve as an alternative, but not a replacement to CDs. As detailed in our report, there are still those consumers who prefer a tangible product,” said David Schatsky, President of JupiterResearch. “One size does not fit all when it comes to acquiring music and consumer behavior toward the variety of formats available reinforces that claim.”
Find the full report here.