Topic: Digital music boom has industry happy

[Clive]

WebUser
October 3, 2005
Quentin Reade

Increased demand for music on the internet and mobile phones is nearly matching the decline in traditional music sales, new figures show.

In the UK, physical sales (CD, records and tapes) fell by 4 per cent in value and 1.7 per cent units in the first half of 2005. By contrast, digital sales saw explosive growth, with single track downloads alone increasing tenfold to 10 million units in the first half of 2005 compared to the same period in 2004.

The US saw a drop in physical sales of 5.3 per cent in value and 5.7 per cent in units, but a strong increase in digital music sales. Sales of single track downloads alone in the US were up almost threefold in the first half of 2005 compared to the same period in 2004, totalling 159 million.

John Kennedy, head of music industry trade body IFPI, said: "The digital music boom is continuing and it is growing at an exciting pace for the music industry, for online retailers and for consumers. More and more people in a growing number of countries are turning to the new legal ways of downloading music on the internet or via mobile phones.

?Meanwhile, there has been other good news in 2005: our actions to contain internet piracy, whether by education or by litigation, are working. And the legal environment is improving, with a series of recent decisions against unauthorised file-swapping services such as Kazaa helping to shift the balance in favour of the legitimate business.

?There is a long way to go - digital and physical piracy remain a big threat to our business in many markets. Our industry's priorities are to further grow this emerging digital music business while stepping up our efforts to protect it from copyright theft."