Music Habits Continue to Shift to Digital Distribution 
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Tuesday, 17 March 2009

A survey of the music habits of consumers aged 13 and up has confirmed that the music industry is experiencing some vast changes, and is increasingly reliant upon digital methods of distribution.  In 2008, fewer people bought CDs and more people turned to authorized, online music services than ever before.

The NPD Group has noticed an overall downward trend in consumers purchasing music – 13 million fewer people bought music last year, either through CD sales or online sales, than in 2007.  This is a direct result of a 19 percent drop in CD sales for 2008, although it is mitigated by a 33 percent jump in the number of people purchasing music online.

Consumers are also turning to free or ad-based services on social networks and similar sites online, NPD found.  Music services such as Pandora are proliferating online consumers, and 18 percent of those surveyed said they had heard of and/or used the service.

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