AS DIGITAL music hogs the headlines, the humble CD has made a comeback at the cash register. However, music retailers may still be feeling the pinch. Figures released by the Australian Recording Industry Association yesterday show an increase of almost 8 per cent in the volume of wholesale physical music products, such as CDs, in 2006 compared with 2005, despite a decrease of more than 5 per cent in overall revenue.

The association's 2006 wholesale recorded music statistics also show that Australians bought three times as much digital music in 2006 compared with the previous year.

The chief executive of the association, Stephen Peach, said the drop in wholesale CD revenue was attributable to tougher competition between retailers and pressure from consumers attracted to the cheaper digital music.