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.