Jupiter Report: CD To Hang On

Reuters reports that the compact disc has at least another five years as Europe’s most popular music format before online downloads chip away at its dominance.

Technology consulting outfit Jupiter Research said in its annual report that in 2009 European music fans will buy $1 billion worth of music in the form of digital downloads and subscriptions to Internet radio services. At that level, digital music revenues will account for roughly 8% of Europe’s music market.

The study does not take into account the surprisingly successful Europeam market for mobile phone ring tones. “Although Europe’s digital music market has finally begun to take off after a sluggish start, it will remain a relatively niche market,” said Mark Mulligan, a Jupiter analyst told Rueters. Jupiter said the venerable CD — not the download — will remain the best-selling format throughout the remainder of the decade as the installed base of CD players continue to dwarf that of MP3 players and other digital music devices.

But hypebot wonders what happens when a iPod or iPod like devise is vailable for inder $100?

Only when affordable technology is available to the masses can new trends reach mass market acceptance.