"That means digital music sales will not compensate for lost CD sales in five years," says David Card, vice president and research director at JupiterResearch. "Nor will they return the overall industry to growth. But digital’s where the growth is."

According to the report, music downloads will replace CDs for many-but not most-music buyers in five years. For the foreseeable future, on-demand subscription services will appeal primarily to niche audiences among music aficionados.
"The music download business will serve as an alternative, but not a replacement to CDs. As detailed in our report, there are still those consumers who prefer a tangible product," says David Schatsky, president of JupiterResearch. "One size does not fit all when it comes to acquiring music and consumer behavior toward the variety of formats available reinforces that claim."
