As Downloads Double, Overall Sales Still Down
January 17, 2007 at 5:49 AM (PT)
BLOOMBERG reports that a surge in downloaded songs and mobile-phone ringtones failed to make up for declines in sales of compact discs last year. Music downloads almost doubled to about $2 billion last year, accounting for about 10% of the industry's global sales, the INTERNATIONAL FEDERATION OF THE PHOTOGRAPHIC INDUSTRY said in a statement. While that's up from 5.5% in 2005, it's still not enough to offset the revenue lost due to piracy and declining sales of physical media such as CDs.
"I would like to be announcing that a fall in CD sales is being compensated for by an equal or greater increase in online and mobile revenues," said IFPI CEO JOHN KENNEDY. "But that is not yet happening on a global basis."
The four biggest music companies, VIVENDI SA's UNIVERSAL MUSIC GROUP, SONY BMG MUSIC ENTERTAINMENT, EMI GROUP PLC and WARNER MUSIC GROUP, are counting on rising sales of downloads. The IFPI repeated its forecast that downloads will account for at least 25% of industry sales by 2010.