NEW YORK - US consumers spent 10 percent less on music in 2007, reflecting declining purchases of compact discs, according to a survey. Sales of downloads rose as Apple Inc.'s iTunes became the second-largest music retailer.
About 48 percent of teenagers didn't buy a CD last year, up from 38 percent in 2006, Port Washington, N.Y.-based researcher NPD said yesterday.
Compact disc sales declined 19 percent in the United States last year, according to Nielsen SoundScan, which tracks retail sales. Downloads and mobile ringtones weren't enough to make up for the drop. Apple's iTunes store became the second-biggest seller of music in 2007 after Wal-Mart Stores Inc., passing Best Buy Co. and Target Corp., NPD said.
Apple said yesterday iTunes has sold more than 4 billion songs. The Cupertino, Calif.-based company also said iTunes has more than 50 million customers who download music and other content.
About 19 percent of US Internet users tried a peer-to-peer service, in which music files are swapped illegally, NPD reported. Legal music downloads accounted for 10 percent of music bought in the United States, according to the survey.
Music spending per Internet user fell to $40 last year from $44 the year before, NPD said.
