Thursday, 20 January 2011

Global Digital Music Sales Down 8-9%

Global revenues from recorded music sales were down 8-9% last year compared to 2009, according to figures released this week in the IFPI Digital Music Report 2011.

Revenues from digital sales across the world grew by 6% last year, now accounting for 29% of total income in the sector (around $4.6bn / £2.88bn). There are now more than 400 legal download services in the market offering between them 13m licensed tracks.

IFPI chief executive Frances Moore told Music Week, “What this report shows us is that we continue to operate in a very challenging market. There is no doubt about it. We continue to be crippled by piracy. But coming out of the report is an element of hope. There are many more legal services available. We are also taking action against piracy - whether it's LimeWire or Pirate Bay.”

While the drastically woeful situation in Spain was cited as a case of a country hit hard by piracy (music sales decreased by more than 50% from 2005 to 2010), a study of consumer behaviour found in Sweden was shown as an example of anti-piracy legislation helping to combat it – with 52% of illegal file-sharers in Sweden reportedly stopping or dramatically reducing their activities as a result of its implementation.

“As an industry, we remain extremely challenged,” concludes Moore. “But we believe that 2011 could be a pivotal year as we are seeing governments start to wake up. If those governments do what they need to - which is imposing a rule of law on the internet - then everything could look up for the industry.”

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