Summary:

Online CD sales down 39%: ComScore research indicates that revenue from the online sale of CDs is down to 39% to $545 million from $730 mill…

Online CD sales down 39%: ComScore research indicates that revenue from the online sale of CDs is down to 39% to $545 million from $730 million last year. The question is what is causing this: the economy, bad music or file sharing juggernaut Kazaa? The reality is probably all three as the economy forces people to reduce spending, music getting more and more throwaway, and Kazaa provides the free alternative laying down $15 for a CD. Phil Leigh, an analyst with Raymond James & Associates, lays out the future of physical media: “There’s no point in buying a physical CD online when you can download one. Retail stores can extend their lives by marketing video games and DVD movies, but these sectors will also be affected by the same trend.”

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