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Consumer Music Spending Trends: A Fresh Snapshot from NPD

Mike Musgrove

The number of U.S. consumers buying music CDs fell by 17 million last year, while the number of music fans paying for digital music downloads increased by 8 million, according to a new report from NPD.

The research firm said that it found the decline in CD purchases was most prevalent among teens and among consumers 50 and over.

Perhaps unsurprisingly, many consumers among the 4,000 people surveyed by the company said they were spending less on entertainment as a result of the recession. Some said they were turning to digital downloads as a way to buy individual tracks, rather than having to purchase an entire album.

NPD also found that consumers are paying more attention to music-streaming features on social networks and on services like Pandora. Consumer usage and awareness of Pandora has doubled to 18 percent over the last year, according to the firm, and 19 percent of those surveyed said they listen to music through social networking sites, up from 15 percent a year ago.

By Mike Musgrove  |  March 17, 2009; 12:00 PM ET  | Category:  Mike Musgrove
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