Global recorded music sales fall by $1.5bn
It's not been a good day for the music industry: this morning we reported on a drop in music royalties, and this afternoon comes news that global recorded music sales slumped by almost $1.5bn last year.
According to the annual Recording Industry in Numbers report by the IFPI, the UK lost its position as the third largest music market after sales of CDs collapsed by nearly a fifth. Germany now ranks as the third largest music market after the US and Japan.
Overall UK sales were $1.38bn, down $170m or 11% year-on-year, due to a 19.2% fall in so-called 'physical' sales to $920m. On the plus side, sales through digital channels grew by a healthy 19.6% to $347m.
In total, global recorded music revenues fell 8.4% to $15.9bn in 2010, a drop of $1.45bn (£905m).
Digital revenues grew by 5.3% year-on-year to $4.6bn, representing 29% of all recorded music revenues.
"The demand for new music seems as insatiable and diverse as ever, and record companies continue to meet it," says Frances Moore, chief executive of the IFPI.
"But they are operating at only a fraction of their potential because of a difficult environment dominated by piracy."
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Comments
Yes I have just subscribed to a Spotify account and now only buy what I really like on CD.
I don't download and won't until I am able to re download what I have bought due to HD failure.
Its a shame but it looks like CD's days in the mainstream are nearly over probably go like vinyl has.
Another generation another format disappears!
besides downloads and streaming, I cant help but wonder if CD sales started to fall when over compression and volume levels started to rocket.
feel this is due to the likes of spotify and other streaming services. i have spotify premium and don't buy any cd's now. cd sales will only decline now, and the fact that more hi-fi and av units will integrate these streaming providers into there equipment.ie onkyo 609. also make more enviroment sense not to produce cd's.
Er... surely the continued global economic slump/stagnation has a lot to do with this? Music purchase whether CD or digital being a luxury many can't afford at the moment i'd think is a fairly safe bet.