IFPI: Digital Sales Skyrocket, Piracy Still Rampant
January 24, 2008 at 3:37 PM (PT)
According to new data from the IFPI, revenue from digital music sales rose 40% to $2.9 billion over the past year. Unfortunately, as INFO WEEK reports, that growth has yet to cover losses from collapse of international CD sales, which the IFPI attributes to the billions of dollars being lost to music piracy. Their data suggest that Illegal downloads outnumber the number of tracks sold by a factor of 20-to-1.
The music industry is ahead of most other creative and entertainment industries in terms of reaping revenue from digital sales, but recording artists and companies continue to suffer losses, according to a recent report.
Illegal downloads outnumber the number of tracks sold by a factor of 20-to-1
In 2006, digital sales accounted for 11% of the global market, with the U.S.' generating 30% of all digital music revenue. The report found that only games are more advanced than music in terms of the percentage of revenue from digital media. The music industry's digital revenue percentage is more than twice that of newspapers (7%), films (3%) and books (2%).
The IFPI asserted that music fans shared tens of billions of illegal files in 2007, at a ratio of 20 illegal tracks for every one legal track. To remedy that, the IFPI wants ISPs to deploy filtering technology and systematically disconnect copyright infringers. "Independent estimates say up to 80% of ISP traffic comprises distribution of copyright-infringing files,"