IFPI Publishes Digital Music Report 2007
Highlights of the report:
- Digital music sales estimated to double to around US$2 billion in 2006
- Single track downloads estimated up 89% at 795 million
- Available tracks double to four million, via 500 online services in over 40 countries worldwide
- Portable music players help drive digital music consumption
- New revenue streams and business models emerge
- Lawsuits impact illegal file-sharing, but "gatekeeper" ISPs must act to curb digital piracy
As expected, however, digital sales are not growing fast enough to replace lost revenue from lower physical CD sales. What are the "new revenue streams and business models" that the report refers to?
"Recent months have also seen digital music distribution channels
diversify. A-la-carte download services, led by iTunes, remain the
dominant digital format, but they compete in a mixed economy with
subscription services, mobile mastertones and more recently new
advertising-supported models and video licensing deals on sites like
YouTube and MySpace.""Mobile
music accounted for about half of global digital revenues in 2006, but
the split between mobile and online varies sharply by country. In Japan
around 90% of digital music sales are accounted for by mobile
purchases. 2007 could prove to be a landmark year in the mobile music
market, as handset makers such as Nokia and Sony Ericsson develop their
music phone series. Meanwhile, Apple has announced the launch of the
much anticipated iPhone."
More: Full press release and link to pdf of the 24 page report here.
