US digital music file sales to surpass CD sales for first time in 2012

SALES OF DIGITAL MUSIC files in the US will overtake those of CDs for the first time in 2012, according to a report by Strategy Analytics.

The study, entitled 'Global Recorded Music Market Forecast', found that revenue in the online music market will reach a record $2.8 billion next year, higher than that earned for the CD sector.

The music industry is seeing declining sales, however, with a seven per cent fall in the US in 2010. Much of this fall was due to lower CD revenues, which fell by 16 per cent to $3.8 billion. CD sales are expected to fall further in 2012 to $2.7 billion, allowing rising online sales to easily surpass it.

It is unclear if these falls are due to lower CD prices and sales because of the recession or the growth of music 'piracy', which the record labels usually blame for revenue shortcomings.

Single track downloads are expected to dominate the online music market, accounting for 39 per cent of all sales by 2015. Albums are catching up, however, with 32 per cent, while subscription and advertising models are both at 14 per cent.

A recent study by Juniper Research showed that subscription services would see a member base of 178 million people over the next four years, while another study by ABI Research revealed a similar trend. µ