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Music Sites To Find Right Rhythm, Says Screen Digest

Music Sites To Find Right Rhythm, Says Screen Digest

Revenues from online music services are set to multiply in the next few years, according to a new study from Screen Digest.

With retail sales in Europe stabilizing, record companies are stepping up efforts to distribute their products by alternative means. The report predicts that online music sales will represent 17% of total music industry revenues by 2007.

CDs and Mini Discs are already major sellers on shopping sites and revenues from ecommerce are expected to increase from E411 million in 2001 to E1.6 billion in 2005.

File sharing sites have been one of the success stories of the internet but record companies have so far been slow to grasp their potential. This is set to change with income from music downloads set to rise to E152 million by 2005, up from just E3 million last year.

Screen Digest anticipates that the biggest losers in the music marketplace will be paper-based mail order and record clubs. These currently account for 15% of record industry revenues in Europe. The main threat is expected to come from online music libraries which can be accessed by anyone with a suitable digital device. Revenues from these subscription services are predicted to swell from E3.2 million in 2001 to E362 in 2005.

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