World Music Recording Market To Reach $40.8 Billion by 2010
February 25, 2008 at 5:29 AM (PT)
The world music recording market is forecast to post a modest Compound Annual Growth Rate (CAGR) of 0.94% over the 2000-2010 analysis period and reach in excess of $40.8 billion by 2010. The U.S., with a share estimated at 36.92% in 2006, forms the largest market worldwide, while ASIA-PACIFIC, with a CAGR of 1.93% over the same period, is expected to emerge as the fastest growing region.
The report, released by GLOBAL INDUSTRY ANALYSTS, INC., says traditional manufacturers of recording media are shifting over from magnetic media to optical discs, while many other record companies are shifting towards the online platform. Companies are also shifting their production facilities to regions with low manufacturing costs. Another interesting feature is the presence of high levels of consolidation, allowing only four companies to dominate the world market.
Technology has been a dominant force in the music recording industry. The recording industry witnessed a metamorphosis since early phonographs to the current stage of portable digital players. The industry witnessed a sea of change in the last two decades. Invention of the compact disc in the 1980s pushed the music industry into a 'digital' overdrive.
Music piracy is growing rapidly leaving the legitimate music industry gasping for sales. While demand for music reached an all time high, sales have actually dropped. Much of the decrease in sales is to be blamed on increasing availability of free music through Internet and due to mass copying, especially in the ASIA-PACIFIC and LATIN AMERICAN regions. Annual sales for 2004 fell by about 1.4% in terms of value, the slowest since the turn of the century.
For more details about this research report, click here.