Feeds

Digital music sales triple to $1.1bn in 2005

Cash accrued from 420m song downloads

The Essential Guide to IT Transformation

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. ®

Build a business case: developing custom apps

More from The Register

next story
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Sonos AXES support for Apple's iOS4 and 5
Want to use your iThing? You can't - it's too old
You didn't get the MeMO? Asus Pad 7 Android tab is ... not bad
Really, er, stands out among cheapie 7-inchers
Apple winks at parents: C'mon, get your kid a tweaked Macbook Pro
Cheapest models given new processors, more RAM
4K video on terrestrial TV? Not if the WRC shares frequencies to mobiles
Have your say with Ofcom now, before Freeview becomes Feeview
Leaked Windows Phone 8.1 Update specs tease details of Nokia's next mobes
New screen sizes, dual SIMs, voice over LTE, and more
YES, iPhones ARE getting slower with each new release of iOS
Old hardware doesn't get any faster with new software
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
The Essential Guide to IT Transformation
ServiceNow discusses three IT transformations that can help CIO's automate IT services to transform IT and the enterprise.
Maximize storage efficiency across the enterprise
The HP StoreOnce backup solution offers highly flexible, centrally managed, and highly efficient data protection for any enterprise.