The report is based on a survey of just 5,000 consumers in the United States and Canada, finding MP3 devices "underutilized, with just 57% capacity filled." In an interesting development, the group also expects tracks without digital rights management technology to expand to all digital outlets, in addition to social networks, "where friends could sell friends their favorite songs." The latter part is the truly remarkable change since that would indicate that the future of the music industry lies in the hands of consumers, rather than with the currrent music industry companies. Aside from digital sales growth in the next five years, Forrester also sees online music subscription services growing as well, reaching $459 million in revenues by 2012.
While Forrester's report is a nice indication of the future of the music industry, it also confirms (or continues to confirm) what many critics and observers of the music industry have seen for years now. As Forrester Research VP and principal analyst James L. McQuivey commented, "music executives have spent years tracking CD sales, but the artist is the product -- not just the source of it." Whatever the merits are of the small survey that Forrester conducted, the music industry is clearly on the precipice of a major shake-up. Hopefully, by the time it is all over, enough consumers will remain to keep that 23% growth intact and help digital sales reach $4.8 billion. Unfortunately, those same consumers will finally and successfully kill the CD. For good, it seems.
Why is gold making a new high, trading at $1,118.00 per ounce?
Chasing Value: Ten stocks for 2010 -- Part 1 
Closing Bell: A six-day rally (AIG, REGN, M, MOT, PALM, RIMM)
