Digital music sales skyrocket by 940%
p2pnet news view | P2P | Politics:- The corporate music industry has increased its digital revenues by a massive 940% since 2004, says a new report.
But, “Overall, global music sales in the first half of 2009 were down by 12% (physical and digital sales) and full year figures are likely to see a similar trend,” says the latest IFPI puff-piece.
IFPI boss John Kennedy (right) says he hopes the Three Strikes and your Off The Net scheme proposed by Hollywood and the major record labels will survive the UK parliamentary process.
“Digital piracy remains a huge barrier to market growth and is causing a steady erosion of investment in local music,” he says in , going on >>>
Governments, led by France, South Korea, Taiwan, the UK and New Zealand led the way in 2009 by adopting or proposing legislation to tackle piracy. It is vital these efforts are seen through to their conclusion and followed by other governments in 2010.
He neglects to mention the “legislation” is part of a massive, multi-billion-dollar, last ditch effort on the parts of Vivendi Universal, EMI, Warner Music and Sony Music, and Disney, News Corp, Time Warner, Viacom, NBC Universal and Sony Pictures, to gain control of how, and by whom, ‘product’ is handled and distributed online.
Against the interests of their electorates, the governments cited by Kennedy are in bed with the corporate entertainment cartels, striving to introduce legislation which would make their administrations copyright agents, and local ISPs copyright cops, working against their own customers.
But despite non-stop reports of doom and gloom and claims the major labels are being “devastated” by “criminal” file sharers, global digital music trade revenues reached a staggering US$4.2 billion, up 12% in 2009, admits the IFPI (International Federation of Phonographic Industry).
“More than a quarter of all recorded music industry revenues worldwide are now coming from digital channels, as music companies license music in partnership with ISPs and mobile operators, subscription services, streaming sites and hundreds of download stores,” it says, going on:
“Sales of music downloads, the dominant revenue stream in digital music, are seeing steady growth. Single track download sales increased by an estimated 10%, while digital albums rose an estimated 20% in 2009.”
However, “Despite this progress, piracy is the major barrier to growth of the legitimate digital music sector and is causing severe damage to local music industries around the world”, says the report.
..… and identi.ca
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IFPI puff-piece – IFPI Digital Music Report 2010, January 21, 2010
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January 21st, 2010 at 1:53 pm
I think he is mistaken… the major barrier is not piracy – the barrier is getting people to pay extortionate prices for crap! I give my money to usenet providers, I give my money to VPN providers – money which could just as easily go to the musicians.
Look at it this way – I spend £15-20 per month on these services to provide my entertainment. Thats a minimum of £180 per year that could just have easily gone to the entertainment industry, but instead goes to those companies that offer me the services I want!
I am not alone either – and if you multiply it by the thousands of people that do exactly the same as me, it is a staggering amount of money that these industries are losing simply through their own stupidity and greed. I have no sympathy for these people.
The answer is not to blanket tax the population either – If a blanket tax were to be introduced, I would probably pay for a seedbox and ensure that everything I downloaded was seeded until it had a ratio of 10! I need to be able to choose where I spend my money – and unless the entertainment industry gives me some viable choices, I will spend it where I get the most out of it!
January 21st, 2010 at 2:46 pm
Studies have shown that people that pirate are also the most likely to buy similar things online.
If somebody is removed from the internet for piracy that person will be forever unable to buy digital music, so expect a huge sales downturn when this takes off.
January 21st, 2010 at 7:27 pm
How ironic that sales of digital downloads are largely driven by the portable MP3 player, a device the record industry tried to snuff out a decade ago.
January 21st, 2010 at 10:11 pm
“Digital piracy remains a huge barrier to market growth and is causing a steady erosion of investment in local music” That’s THE biggest load of crap I have ever heard!
Has he not ever heard of comunty projects or bands that offer their music / play gigs for free? He is so out of touch with society!
I am involved in the local music scene where I live and am friends with some local bands / venues on FB who would totally agree with me.
January 22nd, 2010 at 12:14 am
I believe that this is BS news for the corporation of liars and criminals.
These morons still believe that hey are going to live of may be this is what they want the investor to believe.
Meanwhile continue the Boycott!
January 22nd, 2010 at 5:18 am
What they won’t tell you is that music sales overall, at least in the U.S., from the beginning of the last decade to the end (2000-09), dropped by 70%! Sales of the top 10 albums of 2009 were nearly 61% lower than sales of the top 10 albums of 1999.
Which is to say, a 10-million-seller in 2000 would be lucky to sell 3.9 million in 2010. If trends continue, that artist would be lucky to sell 1.5 million in 2020. By the end of this decade, we may see a year in which only 10 albums go gold, physical, digital or otherwise. I don’t see digital sales making up for all the physical losses, because by evidence of the 2/3 drop in album sales over the past decade, hardly anyone buys albums anymore, unless they are classics, mostly pre-Soundscan releases.
I think we are all in agreement that the music industry (the majors) has earned its 30 pieces of silver to pay their way into hell. Time for the indies to form a coalition to run the majors out of town for good. The indies have nothing to lose, because gold and platinum are not always a priority.
January 23rd, 2010 at 7:54 pm
“…a 10-million-seller in 2000 would be lucky to sell 3.9 million in 2010…”
Let’s not forget that there’s only so many people on the planet.
If an album sells millions shortly after its release, it’s only natural that its sales figures would drop after that, just from sheer “market exhaustion”. Even the highest-selling albums have to reach a saturation point and bottom out.
January 29th, 2010 at 2:09 pm
What they should do is simply assume piracy and have the ISPs charge a flat fee tacked on for EVERYONE then give it to the major labels or some NPO that can fairly distribute the money.
indie music promotion