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Digital Music Sales Almost Doubled To $2 Billion In '06: IFPI

Global digital music sales almost doubled in 2006 to around $2 billion, or 10 percent of all sales, the UK-based IFPI said Wednesday. The recording industry organization projected that online purchases will account for 25 percent of all worldwide music sales by 2010. Consumers downloaded 795 million “legal” tracks, up 89 percent on 2005, from almost 500 online music services available in 40 countries.
Though seemingly positive, the figures hardly compensate for the decline of CD sales, the IFPI said. Sales of CDs are down 23 percent from 2000 to 2006. More worrisome, according to IFPI, the group is the persistence of piracy. The IFPI has launched 30,000 actions against illegal file-sharers, with 10,000 in 2006 alone. Now, the group is demanding that ISPs take more decisive action in combating illegal file-sharing. Unless it sees evidence of increased vigilance, the IFPI said it will target specific ISPs with lawsuits. The FT puns that the recording industry is on the right track in its tough stance on litigation, as well as its encouragement of measures that will make legal downloading more attractive. Still, if the industry relies on more sticks than carrots in its approach as it has in the past, its efforts could ultimately result in a greater backlash and diminished sales.
The report is available as a PDF. Release. Read about the mobile music market on our sister site MoCoNews.net.
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