Internet Music Sales Are Not Industry’s Saviour, Says Informa

The Global Music Industry: Facts And Forecasts predicts that the value of global online sales will remain almost unchanged in 2002. For the years up to and including 2007, the level of internet music sales is forecast to rise but will only account for an estimated 6.5% share of the global total.

Digital music sales – downloading of high-quality audio files from the Net – will increase in the years to 2007 but will remain a niche sector. By 2007, digital sales will account for an estimated 1.2% of the global total, says Informa.

Piracy problems The problems for the music industry apparently stem from the illegal downloading and copying of music, which is continuing to drive down global sale, according to the report. There will have been five consecutive years of decline by 2004, if the forecasts prove accurate.

Simon Dyson, author of the report, warns that “urgent action is needed to limit the downloading and copying of music” if the current sales decline is to be reversed. “This does not just apply to the music companies, but all those involved in the process,” he says.

Global sales will be worth $31.1 billion in 2002, falling to $30.2 billion in 2003 and to $29.9 billion in 2004. Moving into 2005, sales will pick up again and reach $32.5 billion by 2007. The return to growth after 2004 is expected to come as internet file-sharing systems are restricted and a greater control over CD copying is developed.