Report Says Digital Music Sales Will Surpass CD Sales in 2012

A new report from Forrester Research Inc. says that half of all music sold in the United States will be digital in 2011 and sales of digitally downloaded music will be greater than compact disc sales in 2012, reports The Business Review.

Based in Cambridge, Mass., Forrester Research said that digital music sales will increase at a compound annual growth rate of 23 percent over the next five years, and by 2012, will reach $4.8 billion in revenue. CD sales, however, would only earn $3.8 billion in revenue by 2012.

James McQuivey, vice president and principal analyst at Forrest Researcher, said in a statement, "This is the end of the music industry as we know it. Media executives eager to stay afloat in this receding tide must clear the path of discovery and purchase, but only hardware and software providers can ultimately make listening to music as easy as turning on the radio."

The Forrester report's predictions are based in part on a survey of more than 5,000 consumers in the United States and Canada.