CDs Are Still The Leading Music-Delivery Format

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News Posted: Wed, Aug 19 2009 11:01 PM
Although paid music downloads are certainly popular thesedays, CDscomprised 65% of all tracks sold in the first half of 2009 according to the NPDGroup's MusicWatch survey. Paid digital music downloads increased from 30% marketshare in all of 2008 to 35% of tracks purchased by U.S. consumers in the firsthalf of 2009.

For the purposes of the survey, digital sales includeddownloads to the PC and over-the-air full-track downloads to cell phones, but theydid not include cell phone ringtone downloads. The survey also excludedmusic-subscription services. NPD defined a full-length CD as offering 12tracks.

"Many people are surprised that the CD is still thedominant music-delivery format, given the attention to digital music and theshrinking retail footprint for physical products," said Russ Crupnick,entertainment industry VP. "But with digital music sales growing at 15 to20 percent, and CDs falling by an equal proportion, digital music sales willnearly equal CD sales by the end of 2010."

In terms of music downloads, Apple’s iTunescontinues to enjoy great success, having expanded its lead in the market to 69%of all digital music sold in the first half of the year; AmazonMP3 held 8%. Walmartleads the pack in terms of physical CD sales with a 20% share followed by BestBuy at 16% and Target and Amazon with 10% each. If you combine physical anddigital sales, iTunes still leads in the U.S. with 25% of all music units sold.
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This doesnt suprise me. Physical media will be the winner for a long time to come. I still buy CDs and rip them. Videos I consume mostly online, though still think DVDs and Blurays will be king for a long time in that arena too.

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