NPD: Recession changing how we buy music

March 19, 2009 | Terrence Russell | Comments | |

A report from research firm NPD puts a new spin on the rise of digital music purchases. The survey found CD sales continuing their downward spiral in 2008, while the number of digital music buyers have grown almost 30 percent year over year.

But here’s where the report gets good — apparently, the recession is now part of a growth factor for digital music purchases.

According to NPD, the economic downturn was one of the main reasons listeners passed on CDs last year, despite consistent bumps in both music listening and digital song purchases. By the numbers, NPD says this comes out to 17 million fewer CD buyers in 2008 compared to digital music’s 8 million strong increase over the same period.

Of course, it’s worth noting that CDs still outnumbered downloads in terms of overall units sold, but with NPD’s pro-download respondents citing advantages like cheaper ala carte purchase options, one has to wonder if the persistence of monetary concerns won’t hasten a shift in digital purchase adoption.

As a cost conscious audiophile this trend makes sense. If given the option of purchasing a physical copy of a full album, or digital copies of the three tracks I’m truly interested in, my dwindling 401k will steer me towards the cheaper digital copies. As it becomes increasingly clear that our economic woes are going to linger, I wouldn’t be surprised if price-based buying decisions push more music lovers to digital purchases too — at least while MP3 player sales continue to grow.

[photo: flickr/Life Sciences]

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About the Author, Terrence Russell

Terrence writes about online video and digital media licensing for Venture Beat. When he isn't binging on the newest television series to hit the web, Terrence contributes to WIRED Magazine and Wired.com.

  • Expired: CDs
    Tired: MP3 downloads
    Wired: music streaming (Spotify!)
  • Everycritic
    I'm not convinced MP3s are truly cheaper. When I lost my job in 2007, a broadband connection was the last thing I needed. Additionally, when I tire of a CD, I can re-sell it and recoup at least a little of what I spent. Finally, iTunes just announced that it's raising prices of some of its songs. How soon will they be gouging us like the music industry? Or are they there already?

    I also don't buy that CDs are "expired." Demographics like the elderly, children and the developmentally disabled are consistantly ignored in articles that talk about CDs "going the way of the 8-track." Only when downloading becomes as easy as press-n-play will I buy that CDs are dead.

    Streaming? Forgot it. I refuse to pay every time I want to hear my favorite song. When I was unemployed, I could still hear my music collection. I couldn't say that if I missed a monthly payment on a music subscription.