If they are, you won’t find the industry admitting it…the International Federation of the Phonographic Industry (IFPI) has released another report claiming music sales are falling and blaming piracy…”Global music sales fell 1.9 percent in the first half of 2005, but the industry cheered a tripling of digital music sales, spurred by mobile phone “ringtunes” and Apple’s iTunes Music Store.”
The article goes on to say that digital music now makes up 6 percent of total sales, a figure of $790 million for the first half of the year. Meanwhile, sales of “CDs and music in other physical formats continued a long decline, which the music industry has blamed mainly on piracy, falling to $13.2 billion from $13.4 billion a year earlier.”
If physical sales fell $200 million and digital sales gained $570 million surely the music industry as a whole is increasing? Whats also interesting is that the figure for the digital music sales does not include monophonic or polyphonic ringtones — despite royalties being paid on these goods to everyone except the record labels.
The IFPI release is here and has some regional figures…
“The figures show online and mobile sales making a significant impact on the world music market for the first time. IFPI Chairman and CEO John Kennedy 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.”
–Mobile Downloads To Overtake The Net
–Record Labels Loosen Up On Non-Carrier Mobile Music
–Music Mavens Change Tune