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Music Market Dances To Digital

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Music market dances to digital

http://www.fin24.co.za/articles/business/d...18-1786_1908910

 

London - Global sales of digital music are continuing to rise, generating revenues of US$1.1bn for record companies in 2005 and softening an overall slump in music sales, the industry said on Friday.

The International Federation of the Phonographic Industry (IFPI), said that revenues from digital sales almost tripled from US$400m in 2004 while the total number of digital single tracks downloaded online or to cellphones rose to 470 million units, up from 160 million.

 

However, overall music sales continued their decline of recent years, dropping another 3% in 2005, largely due to a 6.7% drop in the value of compact disc purchases.

 

IFPI Chairperson and Chief Executive John Kennedy attributed the decline to piracy, competition from other entertainment outlets and a shift in the way listeners get their music.

 

Single-song downloads dominated global online sales, accounting for 86% of purchases. Apple Computer Inc's iTunes remains the market leader, offering singles to download at a much cheaper price than buying a CD version.

 

"When you can buy just the songs you like in a digital format, you don't have to buy the album," said Phil Leigh of Inside Digital Media, a US market research firm.

 

The IFPI said that 618.9 million CDs were sold during 2005, down 19% from the 762.8 million sold in 2001.

 

Kennedy said it was encouraging that the markets with the strongest digital sales - the US, Japan, Britain, Germany and France - were also generally the best performing markets overall.

 

"In Japan digital has already made up for the decline in physical sales, and other markets should go this way," he added.

 

Japan was also noted for the strength of mobile downloads, which dominate the digital music market there. Only 9% of consumers in Japan got their music from the internet, compared to around 65% in the US, Britain and Germany.

 

Coldplay's album X&Y was the biggest-selling album of the year globally, with over 8 million copies flying off the shelves, and the biggest-selling digital record of the year in the US.

 

A study of 1 000 adults conducted by the research company Ipsos found that 75% of music fans say CDs are too expensive - though 80% said they considered it stealing to download music for free without the copyright holder's permission.

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I read another story about this and it said that the record industry in general, is still in a slump. Maybe that's because (to me anyway) most of the music stinks.

People like David Bowie and others can now do their own thing without the big record companies involved...they can sell for a bit less and more alot more. No middleman.

Still, pirating is eating away at everyone's profits.

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I read another story about this and it said that the record industry in general, is still in a slump. Maybe that's because (to me anyway) most of the music stinks.

People like David Bowie and others can now do their own thing without the big record companies involved...they can sell for a bit less and more alot more. No middleman.

Still, pirating is eating away at everyone's profits.

 

I watched the Academy Awards, one performance was a group that did there new song about a pimp!

Enough said on that.

It would be interesting to see what categories are slipping the most.

 

 

cdanteek

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I read another story about this and it said that the record industry in general, is still in a slump. Maybe that's because (to me anyway) most of the music stinks.

People like David Bowie and others can now do their own thing without the big record companies involved...they can sell for a bit less and more alot more. No middleman.

Still, pirating is eating away at everyone's profits.

 

And all of this no doubt continues to eat into sheet music sales, altho I don't recall hearing them complaining to the newmedia or congress.

 

And while we are at it, what about the makers of buggywhips? Horseless carriages have destroyed the industry!!

 

Lynn

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And while we are at it, what about the makers of buggywhips? Horseless carriages have destroyed the industry!!

 

Lynn

 

Not where I live and I have been run off the road by carriages with real horses. There called Amish.

 

cdanteek

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There's a woman in our town who dresses in leather and still entertains "gentlemen" with buggywhips. :)

Not where I live and I have been run off the road by carriages with real horses. There called Amish.

 

cdanteek

Bumper sign seen on Amish carriage - "Please do not step in exhaust"

 

(The Amish are one social group we can't inadvertently offend on a computer forum)

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I wonder if the Music execs will ever get a clue that SOME of us are activel protesting DRM. Evertime I get garbage mail from BMG, I send them a nice little note back in the prepaid mailer. No thanks until you stop using DRM. I haven't purchased any music in almost 10 years. I don't pirate either. I simply will not buy any music until I get my rights back to listen to it anyway and on any device that I own.

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I wonder if the Music execs will ever get a clue that SOME of us are actively protesting DRM. Evertime I get garbage mail from BMG, I send them a nice little note back in the prepaid mailer. No thanks until you stop using DRM. I haven't purchased any music in almost 10 years. I don't pirate either. I simply will not buy any music until I get my rights back to listen to it anyway and on any device that I own.

Those reply envelopes go to a mail processing unit - inhouse or jobbed out - that will merely trash your note. If you want the execs to know, you need to get their address and write dirctly.

 

Lynn

Edited by lynn98109

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The music industry will not be happy until the general public sends them money every time we hear or recall a particular piece of music. The music industry does not realize they are part of the overall entertainment industry and they are competing with lots of other alternatives, ranging from their own digital download business to video DVD's to digital radio stations and cable company music services. They whine about declining cd sales - but ignore climbing digital download sales.

 

I still buy music on cd if I really like the material. I surely buy less than I used to. I have too many cd's lying around already. And a lot of the new music isn't for me.

 

I do not download any music - free or paid for (well, I have downloaded a couple of free tracks off Amazon just to listen to see if I like anything). I have no intentions of ever buying anything that has any DRM nonsense included. That includes the likes of Sony/BMG's rootkit virus software included in some of their cd's.

 

 

I'm sure young folks are grabbing free digital downloads from wherever. But you have to ask yourselves if a young person with hundreds of tunes laying around in mp3 format would have run out and purchased all those cd's otherwise. I seriously doubt it.

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