About that claim by Atlantic Records that they have reached the digital tipping point in sales … I still don’t believe it. Neither do some other people whose judgement usually isn’t all that bad. However, I’m really surprised at how many news outlets just went with that story. I would like to see some bullet-proof numbers that support Atlantic’s claim.
Until then, I’d rather believe the latest research by Forrester/JupiterResearch. It says, this year digital music sales will generate 18 percent of overall revenue for the U.S. music industry. By 2013, this figure will increase to 41 percent industry-wide. The catch: The overall music market will shrink 9.8 percent from $10.2 billion this year to $9.8 billion in five years.
This means, digital sales in the U.S. in 2008 will amount to roughly $1.84 billion and will increase 119 percent until 2013. By then the digital market will be worth $4 billion, according to the research.
Looks like the CD will be around for a while:
The report also noted crossover between CD and digital music purchases. In a survey, researchers found that 64 percent of subscribers to digital music services and 57 percent of consumers who download music have bought a CD in a store in the past year.
