These numbers are bunk. Why? Because they don't take into account where most of the sales for independent acts such as organissimo come from. At least 80% of our sales happen at the gig. Those sales are not tracked by Soundscan, unlike sales from CDBaby or brick and mortar stores. I am willing to bet that the same is true for most other independent bands out there. So multiply that by thousands of bands playing on a given night and selling product... and you can see what I'm talking about.
In regards to the music we do sell at CDBaby, most of it is through download services like iTunes. We barely sell CDs. CDs are for gigs. People want something that they can take home to remind them of the show they just experienced.
More music is being produced and sold today than at any other time in human history. It's just not controlled by a handful of major labels anymore. Yes, they are hurting. But we're doing just fine, thanks! We're already out of debt on the current CD, which is incredible to me considering it took over two years to get out of debt on the first one (and about the same on the second).
People are still buying CDs.