D is wrong because the author draws a distinction between recorded and live music. Just because a piece of music was recorded live, does not mean that it not recorded. It could be the case that all recorded classical music are recordings of live concerts, but this does not diminish the argument that people are not going to concerts because they prefer recorded music. Perhaps the factors they prefer about recorded music are the convenience of listening in one's own home, the ability to pause or adjust volume. Listening to a recording of a concert is not the same thing as attending a live performance.
B, on the other hand, must be true, since if it were not the case that new listeners were able to go to concerts, then the author's argument makes little sense as there would be no reason to assume that new listeners were making the choice not to go.