Feeds

Digital music sales triple to $1.1bn in 2005

Cash accrued from 420m song downloads

High performance access to file storage

Record companies made more than $1.1bn on legal digital music downloads last year - three times what they received in 2004. At that time they made $380m, the International Federation of the Phonographic Industry (IFPI) said today.

Crucially, in some markets, including the UK and Germany, more listeners are downloading legal files than illicit ones, the organisation claimed, citing research commissioned from market watcher Jupiter.

The researcher found that, while six per cent of internet users in those two countries regularly download songs from legal sources, only five per cent regularly source music from illegal file-shares.

Of course, the latter constituency is likely to be higher than five per cent, given the unwillingness of some P2P users to admit they are engaged in an activity they know to be illegal or, at the very least, immoral. And in any case, the respective percentages give no indication as to the volume of legal and illegal downloads. There are no indications elsewhere that P2P download activity, particularly in Europe, has been significantly reduced by the growing availability of legal music download sources.

IFPI said some 420m individual songs were downloaded via the internet legally in 2005 - more than 20 times the quantity downloaded in 2003 and enough to account to six per cent of record labels' combined sales. Worldwide, there are now more than 335 legal download sites - up from 50 two years ago, the organisation said.

Since those 420m songs net the record companies, approximately, 66 cents a track, that's a revenue contribution of just $277.2m - a long way from the $1.1bn revenue gain from digital music, the labels claim. Even if the IFPI is assuming the full price goes to the label, that's still only the best part of $420m.

IFPI said mobile-phone music services accounted for 40 per cent of record companies' digital revenues, most of it coming from ringtones that comprise snippets of original artist recordings rather than track downloads. Mobile music revenues totalled $400m in 2005. ®

High performance access to file storage

More from The Register

next story
Report: Apple seeking to raise iPhone 6 price by a HUNDRED BUCKS
'Well, that 5c experiment didn't go so well – let's try the other direction'
Microsoft lobs pre-release Windows Phone 8.1 at devs who dare
App makers can load it before anyone else, but if they do they're stuck with it
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Nvidia gamers hit trifecta with driver, optimizer, and mobile upgrades
Li'l Shield moves up to Android 4.4.2 KitKat, GameStream comes to notebooks
Gimme a high S5: Samsung Galaxy S5 puts substance over style
Biometrics and kid-friendly mode in back-to-basics blockbuster
AMD unveils Godzilla's graphics card – 'the world's fastest, period'
The Radeon R9 295X2: Water-cooled, 5,632 stream processors, 11.5TFLOPS
Sony battery recall as VAIO goes out with a bang, not a whimper
The perils of having Panasonic as a partner
NORKS' own smartmobe pegged as Chinese landfill Android
Fake kit in the hermit kingdom? That's just Kim Jong-un-believable!
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.