CD sales are down 20% since last year, which were already at the lowest point ever. This is likely due to P2P sharing of music, online sales at iTunes.com, puretracks.com etc. and the fact that there really hasn’t been anything good music released this year yet. The new Nine Inch Nails album is coming out soon, that should boost sales a little, but there is a rumor that it will be leaked online today.
I wonder what the sales are like for HDCDs and SACDs? 
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It should be noted that blank CD’s and DVD’s carry a tarif on them that is forwarded to the record industry. Something in the range of 10%.
I belive in buying CDs. No download will give you he same quality as a CD or DVDA. And for people who download music: if you like the album you should pay for it, and if you don’t like it, why the hell you need the download for? ALWAYS TRY TO BUY A LEGAL COPY OF MUSIC YOU LIKE.
I am sure this is the case,however judging by the no. of Taiyo yuden CD-R pre masters I ship out on an average month it does not seem to be a dying format quite yet.