Digital Music Sales Double as Industry Slumps
Perhaps what is happening is that digital music sales are becoming a substitute for CDs. However, the overall decline in music sales may lie in the fact that with digital music, consumers can mix and match songs that they like, which means not having to spend more money on an entire album.
Music revenue generated from downloads increased by 85% to $2.1 billion USD in 2006, which accounted for 11% of worldwide sales for that year. By estimates, Apple Inc. holds about 70% of the online music market, which means that it virtually has control over the only growing branch of the music industry.