Report: 2006 Global CD Sales Down 5%
July 3, 2007 at 12:35 PM (PT)
The INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY (IFPI) says that global sales of CDs decreased 5%, from $20.7 billion in 2005 to $19.6 billion in 2006, marking the seventh straight year of decline and the sharpest fall since 2003, the UK's GUARDIAN reports. Physical sales were down 11%, to $17.5 billion.
Still, sales of downloads skyrocketed 85%, to $2.1 billion, accounting for for 11% of global sales (up from only 2% in 2004). Within that, mobile sales grew faster than online and ringtones accounted for the largest proportion of digital sales in 2006.
"We hoped that the decline in physical sales would be offset by the increase in digital sales," said IFPI Chairman JOHN KENNEDY. "But while digital sales have grown as expected, physical sales have fallen by more than expected.
"Unfortunately this trend has continued in 2007. Physical sales continue to drop at a faster pace than we have hoped for, particularly in the U.S. and now also in the U.K. -- a market that had shown incredible resilience."
KENNEDY redicted that digital sales could grow by a further 50% this year to reach more than $3 billion.
IFPI also said the best-selling album for 2006 was the soundtrack to DISNEY's "High School Musical." RED HOT CHILI PEPPERS' "Stadium Arcadium" (WARNER) was second, and THE BEATLES' "Love" (EMI) was third.