Jupiter Research: The CD Will Be With Us for a While Yet

A new report from Jupiter Research describes the European music market in 2009 – and shows there there’s still plenty of life in the CD format yet.

Jupiter estimate that the entire market will be worth €10.2 billion (US$12.55 billion), with digital downloads accounting for a mere €836 million (US$1.03 billion) or 8% of the total. Growth for digital music services such a s downloads and streaming has been increasing rapidly, from €10.6 (US$13.16) million in 2003 to an estimated €46.3 million (US$57.50)at the end of this year.

Jupiter claim that the CD will remain the format of choice for a long time yet. Recent attempts at revising the format with extra features and gimmicks have shown that the CD of 2009 may be slightly different from those in the shops in 2004. Copy protection techniques may have moved on by then, though news this week that Sony has dropped copy-protected CDs in Japan show that a rethink on this technology is due.

“Although Europe’s digital music market has finally begun to take off after a sluggish start, it will remain a relatively niche market, considering the total European music market in 2009 will be €10.2 billion. Even with the success of the new services, digital music spending will make up less than a half of a percent of Europe’s total music market at the end of 2004,” stated Mark Mulligan, Research Director at Jupiter Research. “In the context of successive years of declining music sales, digital music distribution will be an important alternative revenue channel for the music industry but it is not about to replace the CD,” added Mulligan.

Jupiter Research

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Fraser Lovatt

Fraser Lovatt has spent the last fifteen years working in publishing, TV and the Internet in various capacities, and believes that they will be seperate platforms for at least a while yet. His main interests at the moment are exploring where Linux is taking home entertainment and how technology is conferring technical skills on more and more people. Fraser Lovatt was born in the same year that 2001: A Space Odyssey was delighting and confusing people in the cinemas, and developed a lifelong love of technology as soon as he realised that things could be taken apart, sometimes put back together again, but mostly left in bits or made into something the original designer hadn't quite planned upon. At school he was definitely in the ZX Spectrum/Magpie/BMX camp, rather than the BBC Micro/Blue Peter/well-behaved group. This is all deeply ironic as he later went on to spend nine years working at the BBC. After a few years of working as a bookseller in Scotland, ("Back when it was actually a skilled profession" he'll tell anyone still listening), he moved to England for reasons he can't quite explain adequately to himself. After a couple of publishing jobs punctuated by sporadic bursts of travelling and photography came the aforementioned nine years at the BBC where he specialised in internet technologies and video. These days his primary interests are Java, Linux, videogames and pies - and if they're not candidates for convergence, then what is?