The US music industry is set to grow by 1 percent every year between now and 2017, but physical CD sales are in terminal decline, according to an entertainment report released yesterday (via Billboard).
If that looks low to you, you'd be wrong. The global music industry has been shrinking every year since 1999 until 2013. In March we reported on - wait for it - a stellar 0.3 percent, thanks to the rise streaming services as a new source of revenue.
Meanwhile, the report cites a "terminal decline" in CD sales which will never see "any kind of sales increase" again. But that doesn't mean the format will die out, as predicted last year; the CD could still be generating $500 million in the US by 2023 as a nostalgic niche product.
By 2017, the US music industry will generated $10 billion, with digital sales eclipsing physical by $4.6 billion to $1.4 billion.
Of course, this could all change in a heartbeat. While it seems unlikely for physical to win back the hearts of mainstream music fans, new music platforms from Apple and Google this year could transform the digital landscape. Piracy is also in decline, and new streaming services such as Daisy (which has Nine Inch Nails frontman Trent Reznor on its team) could give another much-needed boost to the digital sector.
Here's a chart with the current predictions up to 2017 (via MusicAlly). The biggest takeaway: most of the money is in live music. Is your band touring enough?