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News

28 Sep 2004

CDs Still Preferable to Downloads

Silicon Still Rocks the House By Cynthia L. Webb washingtonpost.com Staff Writer Tuesday, September 28, 2004; 9:38 AM The Internet may have forever changed the music business, but online downloads will keep playing second fiddle to compact discs for at...

Silicon Still Rocks the House

By Cynthia L. Webb
washingtonpost.com Staff Writer
Tuesday, September 28, 2004; 9:38 AM

The Internet may have forever changed the music business, but online downloads will keep playing second fiddle to compact discs for at least the next five years.

That conclusion comes courtesy of a study of the European music market by Jupiter Research, but the findings could echo throughout the United States as companies like Apple, Napster and Microsoft play musical chairs in the pay-for-play download space. "Digital music distribution will be an important alternative revenue channel for the music industry, but it is not about to replace the CD," said Jupiter analyst Mark Mulligan as quoted by Reuters.

More from the wire: "Technology consultancy Jupiter Research said in its annual report that in 2009 European music fans will buy 836 million euros ($1 billion) worth of music in the form of digital downloads and subscriptions to Internet radio services. At that level, digital music revenues will account for roughly 8 percent of Europe's estimated 10.2 billion euro music market." Also noted, courtesy of Reuters: "The study does not take into account the surprisingly successful market for mobile phone ring tones. The piracy-battered music industry is desperate to see industry-backed download services become a hit with consumers to derail the popularity of free file-sharing networks such as Kazaa and eDonkey."

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