Music Industry Loses Grip on Young

More bad news for the music industry: Not only are young listeners buying fewer CDs--they're also downloading less music, even from illegal sources. They still like music, but they're getting it from new alternative sources, and the shift in listening habits is both remarkable and recent.

The news came in an NPD Group study of music lovers between the ages of 13 and 17. From 2007 to 2008, these "bellwether" listeners bought 26 percent fewer CDs, legally downloaded 13 percent less music, illegally downloaded 6 percent less music, and borrowed 28 percent less music from friends via CD-R copying or ripping.

But that doesn't mean they've gone cold on music in general. During 2008, 52 percent of teens listened to internet radio, versus 34 percent in 2007. Downloading or listening via social networking sites increased to 46 percent, from 26 percent. And satellite radio increased to 31 percent, from 19 percent. More than 70 percent of web-savvy teens actively used a portable music player.

"It's possible teens could start spending more time creating playlists and posting them online, than they would spend sharing actual song files," said an NPD analyst.

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