Only 22% of US Internet users buy CDs in Q3 2008

YTY consumer demand for music among Internet users in the US fell 2% in Q3 of 2008. The proportion of US Internet users, age 13 and older, purchasing a CD in the prior month fell from 25% in Q3 2007 to 22% in Q3 2008. NPD estimates that the volume of CDs purchased declined by 19%. The most dramatic declines in CD sales volume were among teens (down 34%) and among adults age 26 to 35 (down 36%). CD purchases by adults age 36 and older showed a more moderate decline of 10%. 15% of Internet users purchased music from online music stores, such as AmazonMP3, which is an increase of 2% over 2007 and equates to approximately 2.8 mln additional music-download customers. Legal music download volumes increased by 29% in Q3 with positive numbers seen for all age groups except the 50-and-older segment.