As Digital Music Soars...CD Sales Sink

It looks like cd's may soon be obsolete...

Music industry officials say sales are at an all-time low... And the decline in C.D. sales is due to the popularity of music downloads.

But the digital business accounted for only about 10 percent of total music sales in 2006, and the surge in demand for downloaded tunes had not offset a decline in sales of physical music such as compact discs, the International Federation of the Phonographic Industry said Wednesday.

"By 2010 we expect at least one quarter of all music sales worldwide to be digital," IFPI chairman and chief executive John Kennedy said.

"I would like to be announcing that a fall in CD sales is being compensated for by an equal or greater increase in online and mobile revenues. But that is not yet happening on a global basis," he added.

Cell phone downloads will reportedly be a major area of growth in 2007.

They already dominate the digital music markets in several Asian countries, along with Italy and Spain.

The U.S. remains the largest market for digital music, with 582 million single-track downloads last year.