Global digital music sales almost doubled in 2006 to about $2-billion, or 10% of all sales, but have not yet reached the industry’s ”holy grail” of offsetting the fall in CD sales, a trade organisation said.
In its 2007 Digital Music Report, the International Federation of the Phonographic Industry (Ifpi) said on Wednesday it expects digital sales to account for a quarter of all sales worldwide by 2010.
”The digital music market is growing strongly,” Ifpi chief executive John Kennedy told reporters. ”To double over the last 12 months is fantastic. I don’t think anyone will expect it to double in 2007, but we believe it will grow in percentages that any industry would be proud of.”
Kennedy said the growth has not yet offset the drop in the physical market, with sales of CDs down 23% from 2000 to 2006. However, he had seen encouraging signs from the three biggest music markets in the United States, Japan and Britain.
”There is nearly the holy grail in three major markets — the US, Britain and Japan. Next year I would like to be announcing that is the case for around 10 markets.”
He did not give a figure for the overall music market in 2006, but said it is expected to be down in the region of 3%, the same drop that was recorded for 2005.
The report said consumers last year downloaded 795-million tracks legally, up 89% on 2005, from almost 500 online music services available in 40 countries. The number of tracks available online doubled to reach more than four million on leading services, it said.
The music industry has been damaged in recent years by internet piracy, but it has begun to fight back by targeting file-trading and offering and supporting legal alternatives such as Apple’s iTunes.
Ifpi has launched 30 000 actions against illegal file-sharers, with 10 000 in 2006 alone.
On Wednesday, Kennedy said 2007 will be the year it also targets internet service providers (ISPs). He said Ifpi has approached the ISPs about taking more responsibility for stopping illegal music file-sharing, but said the response has so far been disappointing.
He said ISPs are in a position to disconnect consumers who are involved in file sharing and copyright infringement, but with little sign of activity, Ifpi is ready to open lawsuits against the ISPs themselves.
”With cooperation from ISPs, we could make huge strides in tackling content piracy globally,” Kennedy said in the report.
Ifpi lawyer Geoff Taylor said it could provide the basic details to ISPs of users who are uploading significant amounts of music on to the internet for others to share.
”We’re expecting to see significant progress towards resolving this in 2007 and, ultimately, if the ISPs don’t come to the table in a way which helps us deal with the problem, then obviously we’ll have to use the legal rights that we have,” he said.
Kennedy said he has been encouraged by the United Kingdom government, which has indicated it will monitor the situation throughout the year and urge the ISPs to engage further in the fight against piracy. — Reuters