comScore recently found that US e-commerce revenues totalled $18 billion in the three months to September, an increase of 35% year on year (see
US Ecommerce Firms Cashing In, Says comScore). However, analysis shows that online music sales through the first three quarters were $545 million, down 25% on the 2001 figure of $730 million.
“The music industry attributes the decline in online and offline music sales to a variety of factors, such as a slow economy, fewer hit songs, piracy, CD-burning and file-swapping among others,” said Peter Daboll, division president of comScore Media Metrix.
“While a host of factors inevitably impact consumer behaviour, the greater sales decline online as reported by comScore would suggest that Internet file-swapping and CD-burning are having a severe negative impact on music sales among Internet users.”
Despite the demise of Napster, unlicensed file-sharing services continue to thrive and comScore calculates that six of the leading applications collectively were used by 14 million consumers in September.
