Total album sales fell by 11.2 percent to £100.5m in 2012, new BPI statistics showed.
The slump was caused by a 24.2 percent drop in CD album sales, which still make up 69.1 percent of all albums sold.
Digitally downloaded albums, which are now 30.4 percent of the total, continued to see an increase, growing from £26.6 million in 2011 to £30.5 million in 2012.
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Activists, including a young woman wearing a head scarf, spoke out in turn in front of the cameras assembled to hear leader Paul Nuttall.
Mr Farron's bizarre comment was made to an activist who came to watch the party leader speak in Cambridge on Thursday.
The US actor starred in Disney's 2004 film Miracle, chronicling the US men's hockey team at the 1980 Winter Olympics.