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Digital Music Still Grows, But More Slowly
Continuing a long-running trend, sales of downloaded music increased 40 percent last year, to a new high of $2.9 billion worldwide, according to the possibly doomed International Federation of the Phonographic Industry. While that's nothing to sneeze at, download revenues had doubled the previous year and tripled the year before that, so it seems growth is slowing.
CD sales continued to decline, down 15.3 percent in 2007 compared to 2006. During the holiday season the rot was even worse, down 20 percent compared to the same period the previous year.
Even the mighty iPod itself shows signs of flagging, at least compared to its historically meteoric growth. Sales grew a mere five percent last year, according to figures provided by Apple to Wall Street analysts.
Anecdotal evidence suggests that people are holding onto their old iPods, and in some cases prefer them.
However, the market for iPod docking devices is booming. CEA figures quoted in TWICE show iPod accessories--including speakers and clock/radios, but not larger compact systems--up 44.5 percent in 2007, with a smaller rise of 27.7 percent expected for 2008.
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