- Not only are CD sales still falling, but a whopping 17 million customers stopped buying CDs altogether in 2008.
The economic downturn is cited as one reason for the sharp decline, but new services offer viable ways for the music industry to survive this rocky transition period.
While overall music sales were up 10 percent in 2008, the year saw a drop not only in CD sales, but in the number of customers actually purchasing music. But according to a new report, the act of music listening is actually on the rise. While digital music purchases remain strong, the numbers show that there is still much more work to be done in the industry's transition to a new, more diverse set of business models.
NPD's annual Digital Music Study found that there were 17 million fewer CD customers in 2008 than in past years. CD sales have been dropping for quite some time, and while 1.5 billion songs were sold digitally last year, the number of Internet users paying for digital music only increased by 8 million in 2008.
NPD saw all demographics pulling back on CD purchases, but the most significant groups were teenagers and those over 50.
The primary reason for cutting down on CD purchases was a simple slashing of entertainment budgets across all demographics. Cheaper prices for digital albums...