Online music sales in the U.S. are expected to reach $5.4 billion in 2005, said a report by online market research firm Jupiter Communications, Inc.
While individual downloads will continue to be effective marketing tools, the majority of digital music sales will come in the form of online subscriptions, the report continued.
Record labels looking to prevent market erosion by digital music consumption must actively license their catalogs to third-party digital music providers and be prepared to market the resulting services in tandem with media and commerce partners.
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