13m Fewer Music Buyers in the U.S.

There were 13 million fewer music buyers in the U.S. in 2008 compared to the prior year although music listening is increasing, according to a new survey report put out by the NPD Group.

It seems the decline in music buying was led by a 19% drop in CD sales (there were 17 million fewer CD buyers in 2008 compared to the prior year).

According to NPD, only 58% of Internet users reported a CD purchase or digital music download last year compared to 65% in 2007.

Recession, price of CDs and satisfaction with the collection of titles owned were some reasons cited by consumers for not buying CDs. Decline in CD buying was noticed across all demographic groups but pronounced in teens and consumers aged 50 and over.

NPD sees evidence of greater music listening in higher awareness of online music station Pandora and higher percentage of consumers claiming to listen to music on social networks.

Silver Lining
On a positive note, the number of Internet users paying for digital music rose by 8 million in 2008 to 36 million.

In 2008, purchase of online digital music was up 29% and now accounts for 33% of all music tracks purchased in the U.S.

One Response to "13m Fewer Music Buyers in the U.S."

  1. SRINIVAS   March 23, 2009 at 12:48 am

    music over internet will not result in different stream of revenue – which can be considered as a replacement for buying a CD ….some will buy ….most will download for free ….. so ….it’s something which minimises looses to a very marginal extent ..it’s naive to think that by offering legal downloads …people will willingly opt for that ….if people were so ethical ….they would not download for free in the first place..

    foll are the options :

    go to a free site and download songs
    One buys the cd and rips it and uploads it in some FTP ..others take it from there …
    torrent ..limewire etc

    Banning Napster is not going to change anything

    Mfg CD’s which play only on CD players and not on computers ….Ripping should be made impossible by technology …again there will be people who will try and break this ….so it has to be a constant effort …keep on blocking websites which offer free downloads ….make these comnpanies who offer -rapidshare ,megaupload and all these accountable ..

    Only then Piracy will stop ….

    As far as Music is concerned …its alarming …piracy will destroy the industry totally ….

    Movies will still survive …thanks to the big screen experience which cannot be replicated on a computer..

    SearchIndia.com Responds:

    Besides the technological roadblocks that you refer to, a few other suggestions for the music industry include:

    * Lower prices for CDs

    * Reduce the astronomical payouts to the artistes and fat salaries for the record company executives. The old model is no longer sustainable in the digital era.

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