The sales of digital music tracks went up threefold in the first half of this year, according to new figures from the industry trade group IFPI. Around the world, the overall sales of music declined a little, but the digital market continued to boom, thanks mainly to markets like Britain and the USA.
This from Reuters:
The IFPI said that lower CD prices, flagging DVD music video sales and competition from other entertainment sectors also contributed to the decline.
The music industry has used a carrot-and-stick approach to reverse flagging music sales by promoting digital music services such as iTunes, Napster and Rhapsody while aggressively targeting illicit downloaders with lawsuits.
Despite the success of the market-leading iTunes service, Apple and the music labels may be heading for a showdown when license agreements expire in the spring. The labels are pushing for the ability to charge different rates for different songs, while Apple is insisting that its flat-price model be maintained.
But despite rocketing growth, digital downloads still account for just 6% of the music industry's sales. Either way, for digital music vendors tripling market share in a year is great news (the bean counters will really enjoy it).
Here's a question though: is the decline of physical formats less marked than the growth in digital ones? I ask because I've probably bought more music in the past year than for quite some time, but the vast majority of it is still on CD. Why? Because that format gives me more flexibility; I rip the tracks to my computer, but I keep a physical copy. It's less restrictive (I don't want any rights mechanisms in place), it's useful and it doesn't rely on my computer remaining in operation. Basically, there are still benefits to buying physical and making digital copies. I'm going to try and find some figures on that, if I get the time.
