Online Music Sales To Pass CDs in 2012: Report


Digital Media Wire reports that sales of digital music downloads will grow at a compound annual growth rate of 23% over the next five years, reaching $4.8 billion in revenue by 2012—when they will overtake CD sales, according to a new study from Forrester Research.

The article said that despite the rise, digital will still not compensate for falling CD sales, which will drop off to just $3.8 billion in 2012. “This is the end of the music industry as we know it,” said Forrester principal analyst James L. McQuivey.

The study also said that “experiments in ad-supported downloads will be silenced by the powerful combination of DRM-free music and on-demand music streaming on sites like” Meanwhile, subscription services will be just a drop in the bucket at $459 million.