CD and Digital Music Sales Down 21 Percent: Report

CD and Digital Music Sales Down 21 Percent: Report
As anyone with an iPod is likely unsurprised to discover, CD sales are plummeting fast. New numbers from market research firm the NPD Group show that between 2007 and 2009 the number of U.S. music purchasers declined by 24 million, or 21 percent, according to Digital Media Wire. But, more interestingly, the numbers also showed a drop in download purchasing.

The group presented the information during Digital Media Wire's Digital Music Forum East in New York last week. According to the report, the music-buying market lost 33 million CD buyers during the two-year span, while the number of Americans purchasing music downloads also decreased, from 35.2 million in 2008 to 34.6 million in 2009.

The NPD attributed the digital sales drop to downloaders trying out paid online downloads and then losing interest. They also pointed fingers at music streaming services like Spotify as another reason why consumers weren't downloading as much.

"We're eating our young. For some people, more listening just means more listening, and tends to lead to less purchasing," NPD analyst Russ Crupnick told CNET.

The NPD also found a drop in the amount of music being shared in peer-to-peer networks, suggesting that reasons for this decrease could include growing competition with paid downloading services, fear of spyware and computer viruses, and music shared by consumers that are swapping music on hard drives.