Digital Music

#music - Digital music will make up 41 percent of music sales by 2013 as compact discs (CDs) continue their decline, claims a December 2008 report from Jupiter Research.

The Jupiter survey predicts that overall, the music market will shrink by about 0.8% by 2013, to $9.8 billion in sales, with the percentage of sales of "offline physical format" forms (CDs, albums, etc.) plummeting from a 64% share of sales down to 40%. That's a combined annual growth rate (CAGR) of -8.7% -- a worse number than Jupiter predicted last time they looked at the market (-7.1%).

The percentage of sales accounted for by digital-music formats will reach 41% by 2013, the first year, it is thought, where music in digital-file form will outsell physical formats like CDs.
Then as now, downloads from services such as iTunes, Amazon, and their ilk will lead the digital charge -- in fact, downloads will be a bigger deal than even by then, with projected sales of $3.27 billion. That's up from a projected $1.496 billion in 2007, for a very healthy CAGR of 24%.

Source: Beta News, Jupiter Research