Physical CDs and LPs still outnumber downloads

Despite impressive growth in online music sales this year, CDs and LPs together are still outstripping digital downloads, according to a new study from market research firm Gartner.

Sales of online music are expected to grow more than 31 per cent by 2015 to $7.7 billion, but despite a slide in physical music format sales from around $15 billion in 2010, CDs and LPs are still expected to outstrip their digital equivalents, with total sales of $10 billion.

But it isn't all doom and gloom for digital music, though. One of the study's key findings was the growth of music subscription services, where streaming as well as downloads would pave the way of the future. "Online music subscription services, such as Spotify, will be the main growth sector in this market, showing fivefold growth from 2010 to 2015. A la carte sales will drive the bulk of overall revenue," says the report.