Retail value of the digital music market accounts for 6% of total retail sales around the world, with new figures from the International Federation of the Phonographic Industry (IFPI) revealing that digital music sales in the period reached $790 million, up from $220 in the first half of 2004.
This strong growth has resulted in the digital music market overtaking the value of the global singles sector, with physical music sales falling by 6.3% in the first half of 2005 to $12.4 billion, and by 6.6% in units, compared to the same period in 2004.
Digital music sales are being driven by the continued uptake of broadband, increasing penetration of 3G mobile phones and portable music players.
Commenting on the findings, John Kennedy, chief executive officer for the IFPI said: “The digital music boom is continuing and it is growing at an exciting pace for the music industry, for online retailers and for consumers.”
Kennedy continued: “More and more people in a growing number of countries are turning to the new legal ways of downloading music on the internet or via mobile phones.”
The important role of broadband in the digital music market is confirmed by eMarketers Online Music: Downloads, Streaming, Radio, Mobile report which claims that by the end of 2005 there will be over 41 million broadband households in the US and almost an equal number of digital audio players (see Digital World Transforming Music Industry).
According to market research firm Synovate, world-wide digital music sales rose enough in the first half of 2005 to offset the decline in physical music sales which is damaging the music industry (see Majority Of Music Downloads In Asia Free).
In-Stat predicts mobile music services to rise in popularity, with US customers showing greater interest in downloadable files and broadcast digital radio than mobile gaming (see Music Mobile Phone Services To Overtake Gaming).
Informa Telecoms & Media’s Mobile Entertainment report, claims that consumers are increasingly using their mobile phones to play music and games, opening up lucrative new revenue streams for mobile and content industries, resulting in a global mobile entertainment market predicted to be worth $42.8 billion by 2010 (see Global Mobile Games Revenues To Hit $11.2 Billion By 2010).
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