Digital Music Sales Up 12

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Digital Music Sales Up 12%

By: Mike Sachoff
2010-01-22

More than a quarter of all recorded music industry revenues globally are now coming from digital channels, as music companies license music in partnership with ISPs and mobile operators, subscription services, streaming sites and download stores, according to the International Federation of the Phonographic Industry (IFPI).

However, despite the continuing growth of the digital music business with revenues up 12 percent to an estimated U.S. $4.2 billion in 2009, illegal file sharing and other forms of online piracy are harming investment and sales of local music in major markets.

Governments are gradually moving towards legislation requiring ISPs to redcue digital piracy. In 2009, France, South Korea and Taiwan adopted new laws to address piracy. Other governments, including the UK and New Zealand, have proposed new laws for adoption in 2010.

Sales of music downloads, the main revenue stream in digital music are seeing steady growth. Single song download sales increased by an estimated 10 percent, while digital albums grew an estimated 20 percent in 2009.

"Music fans today can acquire tracks and albums in ways not conceivable a few years ago - from download stores, streaming sites, subscription services, free-to-user sites, bundled with their broadband or a mobile phone handset," said John Kennedy, IFPI chairman and CEO.

"It would be great to report that these innovations have been rewarded by market growth, more investment in artists, more jobs. Sadly that is not the case. Digital piracy remains a huge barrier to market growth and is causing a steady erosion of investment in local music. The collapse in sales and investment in France, Spain and Brazil, countries with traditionally vibrant music cultures, testify to this and are a warning to the rest of the world."

About the Author:
Mike is a staff writer for WebProNews. Visit WebProNews for the latest ebusiness news.


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