James Delahunty
23 Jan 2006 8:23
According to the International Federation of the Phonographic Industry (IFPI), global music sales fell again in 2005 despite a huge rise in online music download sales. Chairman of the IFPI, John Kennedy said that global music sales fell by 2% after remaining flat in 2004 amid a four year slide. According to a separate report by the IFPI, there was a threefold increase in digital music revenue, while illegal file-sharing volumes changed little.
The look now has to go beyond piracy for the obvious possible goods and services that are taking a bite out of music sales. "Piracy in all its forms has been the major factor in this reversal but not the only factor." EMI chairman Eric Nicoli said. He cited increasing competition from other categories of consumer goods. "Twenty years ago there were no mobile phones, no DVDs, no computer games to speak of." he said.
"In categories that did exist, like magazines, cosmetics and designer clothes, we've seen a massive explosion of choice and accessibility to consumers. So no surprise, then, that music sales have come under pressure." he added. To attempt to increase revenues, some record labels have been pressuring Apple to allow variable pricing on tracks offered by the iTunes music store. Apple so far has insisted that a blanket price per track is the best way to go and is unwiling to change its stance.
Source:
BBC News