European online music sales are forecast to generate Euro 1.1 billion by 2010, according to research by Screen Digest, rising from Euro 280 million by the end of this year. But the overall European music market has lost 22 percent of its value since 2001 – and online sales won’t offset that decline until 2010.
— Growth of online music sales is being driven by rapid broadband penetration and the popularity of portable music players, now owned by 7 percent of Europeans. In 2005, 29 million Europeans used portable music players with highest use, over 10 percent, in The Netherlands and Germany. By 2010, the report predicts 80 million Europeans will own portable music players.
— Piracy is identified as a problem, though the report points out that the number of tracks on illegal distribution platforms actually decreased from 1.1 billion in 2003 to 885 million in 2005. Reduced shelf space in big music retailers is another factor as music gives way to DVDs, books and mobile products.
— Online will not be enough halt the current decline in music sales, said analyst Dan Cryan: “The music industry needs to make the most of new delivery platforms. We believe with the right strategy – including mobile and online – that the worst might be over by 2010. The industry must adopt a broader approach to selling music, looking beyond the traditional single and album.” Release | Report
This article originally appeared in MediaGuardian.
Comments have been disabled for this post