A recent study from Forrester Research found that one in five Americans engage in music downloading and half of these admitted to buying fewer CDs (see
Legal Downloading To Drive Out CDs And DVDs). The report concluded that the growing popularity of file sharing and the arrival of legitimate online services spelled the end for CDs and DVDs.
However, Parks Associates’ Digital Music: Market, Consumers and Services claims that there is life in physical media yet. The technology research firm claims that just 20% of digital music users own an MP3 player. Furthermore, only 8% are planning on purchasing such a device within the next twelve months.
“The CD is being replaced as a distribution method, not a format,” said John Barrett a research analyst at Parks Associates. “Digital music users are taking their tracks, burning them onto CDs, and then playing the CDs on their stereos.”
He went on to point out that while nearly one-half of all digital music users store less than 50 tracks on their PC, 80% own a CD burner and discs still have a future.
“We’re going to see a gradual transition to an all-digital format,” Barrett predicted. “Digital media adapters are too expensive and legacy stereos too numerous for everyone to just suddenly switch within a few years. Plus, how many cars have a hard-drive?”
