I see buskers here with real CDs! I've also seen some offering downloads, & maybe the performers attracting huge audiences in booked spots in retail areas only have downloads, but as they are not to my taste, I've never got close enough to see.   

CDs were selling at our National Folk Festival last month. And friends recently sent me their latest CD.

I was given a download card as thanks by a performer last year at a concert where I was volunteering at the door. I've only played it once as I never think of it or the few MP3s I have in iTunes - now that I'm reminded of if I might play it again ... if I remember, but it's soooo much easier to pick up a CD from the small pile beside my desk or the 2 shelves above. And I do like reading about what I'm listening to.