Weighed down by plummeting CD sales, the global recording industry is struggling to find footing in a changing marketplace: spend on physical music is down as online and mobile formats gain momentum, according to eMarketer, writes MarketingCharts.

Global spend on recorded music will fall from $31.8 billion in 2006 to $26.2 billion in 2011, it forecast:

Similarly, US spend on recorded music is expected to drop from $11.5 billion to $9.3 billion during the same period.

Ups and Downs

Previous forecasts were higher, but faster-than-expected declines in sales of physical recordings in key markets resulted in a downward revision as digital growth has not fully compensated for the declines, according to a current eMarketer report, "Recorded Music: Digital Falls Short."

Per-capita music spending in the US has been on a downward trend, offsetting the increases in the number of music buyers, according to eMarketer's calculations (based on Bridge Ratings and US Census Bureau data):

Online and Mobile Growing

The online and mobile segments, which in 2007 accounted for 15 percent of worldwide recorded music spending, will grab nearly 40 percent of the total music spend in 2009, according to eMarketer:

Moreover, in 2011, the online and mobile music spending will make up more than half of the worldwide total, it forecast.