A report published by JupiterResearch shows that while digital music stores and services have jump started Europe's digital music market, we will still be buying CDs for the near foreseeable future.
According to the report - entitled “European Digital Music: Identifying Opportunity” By 2009, Jupiter forecasts that digital music revenues will grow, but still only account for 8% of the total market.
“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 JupiterResearch. “ 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.
The report is one of the most extensive undertaken in Europe.