Andre Yoskowitz
17 Jan 2009 4:42
According to a new report by the International Federation of the Phonographic Industry (IFPI), 95 percent of all online music downloads are in fact unauthorized and can be considered piracy.
The trade group notes that piracy is "its biggest challenge" as it leaves artists and record companies without royalty payments.
The report noted that worldwide music revenue shrank by 7 percent last year but did add that digital downloads continued strong growth.
The IFPI says over 40 billion music files were shared "illegally" over the past year in comparison to the 1.4 billion tracks purchased legally via iTunes, Amazon MP3 and other online shops.
John Kennedy, the CEO of the IFPI, added:
"There is a momentous debate going on about the environment on which our business, and all the people working in it, depends.
"Governments are beginning to accept that, in the debate over 'free content' and engaging ISPs in protecting intellectual property rights, doing nothing is not an option if there is to be a future for commercial digital content."