The International Federation of the Phonographic Industry reports that digital music sales rose 8% last year to $5.2 billlion worldwide. The lobbying group was quick to note that the improvement is nearly meaningless in an industry in which traditional sales of CDs and records have disappear and in which illegal file sharing is almost a religion among listeners.
The group reports that
Global revenues to record companies grew by an estimated 8 per cent to US$5.2 billion in 2011 – a faster rate than 2010 – with strong consumer demand for both single track downloads (up 11 per cent by volume), digital albums (up 24 per cent by volume) and fast-expanding subscription services. The number of users paying to subscribe to a music service leapt by 65 per cent in 2011 to 13.4 million worldwide, according to IFPI estimates.
In the US, the world’s largest music market, digital channels have overtaken physical formats to become the primary source of revenues for record companies. Globally, 32 per cent of music industry revenues come from digital sources, far surpassing the film, newspaper and book sectors. New services launched across Latin America, while in China record companies are working in a landmark partnership with the largest internet company Baidu.
The group credits firms like Apple (NASDAQ: AAPL) and Spotify with much of the increase
Those who want to deprive the industry of money and break the law continue to do so
Piracy remains an enormous barrier to sustainable growth in digital music. Globally, one in four internet users (28%) regularly access unlicensed services, according to IFPI/Nielsen.
Top Gaining Stocks
Top Losing Stocks