According to a new report, digital music sales are set to triple in just four years from $7.4 billion to $20.1 billion in 2015. This shouldn’t be too much of a surprise with all the hype digital music gets in the press.
What I find surprising is that NPD Group also released their own report recently with findings that might seem somewhat contradictory: kids between the ages of 2 and 14 in the U.S. still overwhelmingly purchase physical goods. Hmmm. Go figure. And figure they did: consider that 79 percent of these kids’ entertainment purchases by value – across all media types – are physical. Compare this with an earlier NPD report that found 55 percent of music buyers – across all ages – are still solely purchasing CDs, though the broader number of buyers is shrinking. Interestingly, NPD found that across both physical and digital formats, music accounts for 72 percent of all media, followed by movies, games, TV shows, books, and apps.
We talk a lot on this blog about the incongruous public perception around the physical vs digital formats of music and the revenues generated by each. We try to dispel the myths… and in the process even we are sometimes taken aback by the stats we find. That young people are so attached to the physical formats of music seems out of line with our perceptions of this iPhone toting, Spotify listening generation…
While the majority of kids’ entertainment content purchased today is physical — that number is slowly shrinking, although it will never go away. I believe physical and digital music can and will live together in harmony. Fans want their music and other entertainment content in a variety of formats that meet their changing environments and needs. That is the way it will always be.