Digital music sales increase not enough to offset overall losses
By Dave Parrack
Digital downloads of music are on the increase, but this rise in popularity hasn’t been enough to offset the overall losses of global music, with revenue shrinking by 10% in 2007.
The IFPI (International Federation of the Phonographic Industry) has released its annual report in to global music sales, and the official figures show that the music industry is the heading in the wrong direction in terms of retail sales.
Digital downloads are actually up, and quite substantially, rising by 40% throughout the course of 2007, but even this huge increase isn’t enough to offset the losses experienced by the whole of the music industry over the past year.
Can you guess who the IFPI have blamed for this decrease in music sales? Why, the pirates of course. Now I know people who download music can’t be excused completely, but to pile all the blame for a failing business model on to them is a bit too extreme if you ask me.
The FT report John Kennedy, chairman and chief executive of IFPI as saying:
“Illegal downloads still outnumber legal by 20 to one. I am relieved that the proportion hasn’t grown since last year, but I am horrified at a ratio of 5:95 for legal sales,”
While Geoff Taylor, chief executive of British industry body the BPI (British Phonographic Industry) told The BBC:
“Unpaid copying and downloading lies at the root of the recording industry’s problems, and internet service providers must be at the heart of the solution. 2008 must become the year when talk becomes action.”
But hang on, as much as illegal downloaders are playing their part in the distinct downturn which the music industry has experienced over the past few years, there are obviously some other factors at play.
There has been an explosion in other mediums of entertainment in recent years, all of which are also vying for consumers hard earned money. Also, consumers are probably more savvy about what they buy, and maybe aren’t as loyal to one brand, company or artists as they were years ago.
Again, the music industry has its blinkers on, and isn’t seeing the bigger picture. If they concentrated on making CDs and legal digital downloads cheaper, rather than continuously fighting the losing battle against pirates, they could start to make stop the slide.
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March 5th, 2008
With the majors falling in the music industry compared to the indie aritsts getting heard. It seems to be affecting the major labels more than anyone else. Indie artists are now getting heard more than ever and making more money over all than even some major artists. Illegal downloading will never stop because the cat is already out of the bad. WHY would people start paying for music if they know they can download it for free? And with computer’s becoming more technical and musically inclined. People can record quality sounding music now from a lab top. What do you think is gonna happen in 10 years?