Streaming kicks in

So the next phase begins. This Billboard report confirms that we’re on track to reach David Bowie’s prophetic insight (made in 2002) that one day music would be like water — available everywhere by turning a tap.

For the first time since the iTunes store opened its doors, the U.S. music industry finished the year with a decrease in digital music sales.

While the digital track sales decline had been expected due to weaker sales in the first three quarters, the digital album downturn comes as more of a surprise as the album bundle had started out the year with a strong first quarter.

Overall for the full year 2013, digital track sales fell 5.7% from 1.34 billion units to 1.26 billion units while digital album sales fell 0.1% to 117.6 million units from the previous year’s total of 117.7 million, according to Nielsen SoundScan.

While industry executives initially refused to attribute the early signs this year of digital sales weakness to the consumer’s growing appetite for streaming, in the second half of the year many were conceding that ad-supported and paid subscription services were indeed cannibalizing digital sales.

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