JupiterResearch projected ramping digital music sales in its latest report, but outlined a mostly negative fate for the broader recording industry.
The company predicted healthy US-based digital sales increases to revenues of $3.4 billion over the next five years. But that represents just a fraction of projected lost revenues from CDs, already in a tailspin. “The music download business will serve as an alternative, but not a replacement to CDs,” explained David Schatsky, president of JupiterResearch.
The finding is unsurprising, and mostly echoes the math of other researchers and executives. Of course, the trend represents a major problem for major recording labels, which are still struggling to pull a rabbit out of the proverbial hat. Part of the problem, according to Jupiter, is that only a fraction of music fans are warming to digital music downloads. And promising concepts like subscription-based platforms may have difficulty pushing past niche audiences. “For the foreseeable future, on-demand subscription services will appeal primarily to niche audiences among music aficionados,” the report predicts.