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BizReport : Research archives : February 27, 2008

Forrester foresees future of music

Could the end of music as we know it be nigh? Forrester Research thinks so.

by Helen Leggatt

In a portentously titled report, “The End of Music as We Know It”, Forrester Research predicts that digital music sales will surpass CD sales in 2012.

Forrester’s figures put CD sales sliding to $3.8 billion after five years and digital sales growing almost a quarter (23%) every year within the same period reaching $4.8 billion in 2012.

Another area of growth in the music industry will be subscription services, where Internet users pay set amounts to access and download music. Forrester predicts subscription services will reach $459 million in revenues by 2012.

"The industry has to redefine what its product is," said Forrester Research VP and principal analyst James L. McQuivey, via Billboard. "Music executives have spent years tracking CD sales, but the artist is the product -- not just the source of it. New forms of revenue will come from unexpected sources.”

Tags: CD sales, music downloads, online sales, subscription services

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