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900% increase in digital music sales

Written by James Delahunty (Google+) @ 19 Jan 2005 6:02 User comments (6)

900% increase in digital music sales More than 200 million songs in total were downloaded worldwide in 2004, a 900% increase on 2003's total sales the IFPI has said. The IFPI beleieve digital music is proliferating but more must be done to raise awareness about legit online music download stores and to stamp out unauthorized ones. At the end of 2003 there were about 50 music download stores operating in 30 countries but by the end of 2004, that number of stores increased to about 230. The recording companies saw their first significant revenues from the digital market, running into several hundred million dollars which is still only a small percentage of the multi-billion dollars the music industry makes annually.
IFPI cited market watcher Jupiter's estimation of the value of the digital music market in 2004: $330m. When the recording industry takes its cut from that money, it doesn't really leave much left over for the 230 download stores we are hearing about. Jupiter estimates 2005's total will be more than double 2004's, as more punters choose to buy downloads rather than CDs or pinch stuff from the likes of Kazaa and Grokster. The IFPI admit the hardest thing to do is make digital music easier to purchase than it is to steal.

Source:
The Register

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6 user comments

119.1.2005 7:14

900% increase, and the RIAA is STILL bitching about illegal downloads!

219.1.2005 8:36

They want it all! Their tactic is all or nothing, they will not settle for anything less.

319.1.2005 18:30

I personally think that even if all illegal downloading were to stop over night, the RIAA would continue making false statements about downloading and start sueing people who at one point ran a BT website. I might consider buying some MP3s online, but the DRM I just can't swallow, no way am I paying for something with restrictions when I can get the same material without restrictions for free. Until they get rid of DRM, they can count on me to add to the numbers of illegal downloaders.

419.1.2005 21:04

exactly. whats the point of downloading legal music, only to have it come with all these restriction. I would rather buy the CD, than be able to legally rip it to whatever format I want.

521.1.2005 20:25

I dont see these lawsuits and indictments ever coming to an end. I agree completely that the RIAA would continue to sue people regardless of how many sells they make online. I dont respect any musicians who just try to make pop songs to get alot of cash. I can understand making some money off of your music but some of these musicians are rather greedy. It also seems like I'm hearing of more and more mainstream bands that are supporting the lawsuits.

622.1.2005 22:50

The musicians and producers make a small % of the CD's revenue. The music industry uses the money for publicity, newspaper ads for music stores, parties, drug rehab, etc. Plus the wages for all their employees, big and small. The problem is they have kept the prices too high! If CD's were $6 or $7 new they probably sell 2 or 3 times what they sell now. But at $15 to $17 each they've provided incentive to find a different (read free) of getting the music. I use itunes occasionally. I've got it to convert the MP3 file to 16bit Aiff automaticly and a burn a cd in seconds with the songs I want without the filler stuff I may not want. It's like a flashback to the '50's and '60's when most music was sold as 45rpm singles on vinyl for a buck.

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