Either CDs are back on the rise or online piracy is at an all time high, because the numbers that are coming in are indicating that (legal) music purchases on the web are steadily falling. One of the biggest dogs in the yard is the iTunes Music Store from Apple, and their sales are far from “rosy.” Compared to the beginning of this year, monthly revenue has fallen 65% and it continues to drop. Moreover, the average transaction size is 17% smaller, meaning that people are buying fewer songs at a time too.
iTunes is the only one suffering from lackluster sales as this trend is spanning the entire music download industry. No specifics have been released for the Zune Marketplace, but I can’t imagine Microsoft doing any better on this front than anyone else.