The International Federation of the
Phonographic Industry has released its latest statistics on the state of the global music industry, summarized in a report in the Financial Times yesterday. Some of the highlights that I find most interesting (just in case you’re interested in what interests me):
- Worldwide music sales fell by 4% in the first half of 2006.
- The legal digital music market has increased by 106% over 2005, to become a 945 million dollar industry worldwide (11% of the total global market)
- Online and mobile music sales now account for 18% of the U.S. market.
- Sales of physical formats (CDs, vinyl) declined by 10% over the previous year (in 2005 they had declined only by 6.7%).
There’s no reason for panic, though, according to industry leaders. Online digital music sales are on their way to becoming a dominant revenue source. According to IFPI chairman John Kennedy, “in Japan digital has already made up for the decline in physical sales, and other markets should go this way.”
So these stats are good news for business, despite an overall 4% decline in revenues.
Just imagine how much better the digital music market would perform if it was retooled to capitalize on filesharing…