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NPD, the provider of consumer and retail information, has released the third quarter U.S. stats for 2008. According to the report the current economic crisis has increased the legal music downloads in the third quarter to 29% as compared to the Q3 last year. Also the overall demand in music has decreased 2% in the third quarter.

According to the entertainment industry analyst for NPD, Russ Crupnick:

The continued growth in the customer base for paid digital downloads is positive, particularly for teens, but it’s counteracted by deepening softness in CD trends.

Alternative distribution deals in mobile and social networking are important ways for the music industry to fill the gap left by the decline in traditional revenue streams.

Check out the complete report here.