music_news 91 posts

Sales of music on-line show record growth while the CD sales continue to decline. As recently released data from IFPI shows - in the first half 2006:

- Global legal digital music sales rose 106% to $945m (which is 11% of the total recorded music market and twice as much as at the end of 2005).
- The US music market has one of the biggest figures for digital music share (18%). In other countries this figure is: South Korea (51%), Japan (11%), Italy (9%), UK (8%), Germany (5%) and France (5%).
- In the US digital sales increased by 84%.
- Global music sales are down 4% (and are now $8.4bn in trade values, or $13.7bn at the retail level). In 2005, the sales declined by 3%.
- Revenues from sales of music in physical formats declined 10% (compared to the 6,7% decline in whole 2005.)

IFPI Chairman and CEO John Kennedy has said he expects digital sales to make up for the decline in physical sales.

As IFPI claims piracy and peering affects music sales to great extent. This notion is used to explain the decline of overall music sales including physical formats such as CDs. However, they do not explain why the digital music sales grow given the situation with piracy.

Music sales weaken in first half, The Financial Times
[Focus] Europe catching up with US on digital music sales, EU Observer
Digital music sales near $1bn, PC Advisor
Global music sales down despite digital growth, Reuters