The digital music distribution industry continues to grow week-by-week, with official US sales tracking agency Nielsen SoundScan revealing that over two million tracks sold online in the US last week.

Parks Associates research analyst John Barrett told Digital Music News last week: "The digital-music market is quickly growing and everyone is jumping into the space. Margins are razor thin, however, and substantial volumes are needed to make a profit. I expect, therefore, that the less successful players will begin to quit the market within a year or two, and we'll see just the best of the best survive."

From the article "Online-music buys reach fever pitch" by The Macworld Staff

Next: Napster reeling after Apple-HP deal

Be the first to leave a comment.

Have a comment? Login or create an account to start a discussion.