Record labels hail biggest ever year for downloading
Digital music sales accounted for more than a quarter of the music industry’s global income in 2009 for the first time, according to a new report.
Twenty-seven per cent of global music revenues were generated via digital downloads last year generating a total of €3bn.
However, despite digital download takings enjoying a 12pc increase, the sales of CDs still accounted for 73pc of total revenues. CD sales though have continued to plummet and were down by 16pc on the year.
The figures formed a part of the International Federation of the Phonographic Industry’s annual ‘Digital Music Report 2010’.
The IFPI, which is the global trade body for the recording industry, also reported that there had been a 940pc growth in revenues generated from digital sales over the last five years, while the music industry’s revenues as a whole have declined by 30pc during the same period.
The download sales of single tracks increased by an estimated 10pc in 2009 to more than 1.5 billion units, while digital albums grew more strongly, recording an increase of approximately 20pc.
Although digital sales are growing considerably, while physical CD sales are declinng, John Kennedy, the IFPI’s chairman and chief executive, said internet piracy was still posing a major issue and costing record labels money which they could invest in artists.
In Sweden, Taiwan and South Korea, three countries which have recently introduced new copyright legalisation to deal with web piracy, the physical sales of CDs and amount of digital downloads have increased – showing the legalisation, according the IFPI, to have been effective.