The music industry faces another two years of declining compact disc sales that will not be offset by new revenues from music downloads, according to a new report.

Enders Analysis, the media research company, predicts that overall music sales by 2009 will be half their level at the peak of the CD boom. Global music sales are forecast to fall to $23bn in 2009, down 16 per cent from last year and far below the peak of $45bn in 1997, according to Enders.