Jupiter Echoes Negative Sentiments on Recorded Music

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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.