“Music downloads will render the ubiquitous compact disc all but obsolete in the next five years, yet half of all companies that begin selling digital songs online will fail by year-end, a researcher warned on Saturday,” Bernhard Warner reports for Reuters.
“By 2008, one third of music sales in the United States and nearly 20% in Europe will come in the form of downloads and streaming music over the Internet, building a multi-billion dollar business for the battered music industry, according to a new study by consultancy Forrester Research,” Warner reports.
“‘The industry is going through a complete change in the way people consume music,’ Josh Bernoff, a Forrester Research analyst told a gathering of music and technology executives at the annual MidemNet conference,” Warner reports. “He said the U.S. market alone for downloads and subscriptions to online music stores will top $300 million this year from a virtual standing start a year ago. ‘By 2007 or 2008, CDs will be something only old people have,’ Bernoff said.”
Full article here.
MacDailyNews Take: An interesting story from Reuters that somehow and for some reason fails to mention the market share behemoth, Apple’s iTunes Music Store. Perhaps we’re being paranoid, but if, for example, Microsoft had the online music store commanding 70-80% of the market, do you think the article would mention that fact or ignore it completely? After all, when the bubble bursts, which store is most likely to be left standing tall? More information about the elephant in the room that Reuters has decided to try to ignore, Apple’s iTunes Music Store here.