November 20, 2007

By By Antony Bruno, N.Y.

According to a new report from JupiterResearch, digital music sales will not offset falling CD sales anytime soon.

In its "U.S. Music Forecast, 2007-2012," JupiterResearch analysts say that while digital spending will increase to $3.4 billion over the next five years, CD sales will continue to fall. "That means digital music sales will not compensate for lost CD sales in five years," JupiterResearch VP and research director David Card in a statement. "Nor will they return the overall industry to growth. But digital's where the growth is."

Music subscription services like Rhapsody and Napster aren't expected to play a significant role in that timeframe either, with analysts calling it a "niche" service.

Subscribe to Billboard magazine today!