Feeds

Report: World digital music sales to soar £250m

CD and LP sales flag, but discs beat downloads

High performance access to file storage

Global sales of digital music rose this year and are predicted to top £3.92bn ($6.3bn) by the end of December, an increase from £3.67bn ($5.9bn) in 2010, according to a report from Gartner.

But the bulk of music industry income still comes from sales of physical music (CDs and LPs) and will continue to do so past 2015 if the bean counters' forecast holds good. In 2015, global CD sales are predicted to be worth £6.22bn ($10bn) and online music about £4.79bn ($7.7bn). The rise in digital music spending (£1.12bn, $1.8bn) in 2010-15 won't fully compensate for the slide of £3.11bn ($5bn) predicted for physical sales as they slip from the £9.33bn ($15bn) worth sold in 2010.

However, with the rise in digital comes opportunity, says the report. Artists and labels need to prepare to differentiate themselves in a digital world, the analyst says.

"Online music service providers (retailers or subscription service providers) must continue to invest in compelling shopping or consumption experiences that provide search, discovery, recommendation and taste-sharing capabilities," the report recommends. "These efforts must be tightly integrated with efforts to extend service, via applications, to popular devices."

They also advise using social media to drive discovery and consumption and customer tracking to fuel recommendation engines.

Subscription services such as Spotify will drive a significant amount of digital sales, while Latin America and Asia/Pacific will see the biggest uptake of digital music, the analyst predicts.

The full report, Media IAS Online Music Forecast, 2011-2015: Social Media, Subscriptions and the Cloud, is here. ®

High performance access to file storage

More from The Register

next story
Sorry London, Europe's top tech city is Munich
New 'Atlas of ICT Activity' finds innovation isn't happening at Silicon Roundabout
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
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.
HP ArcSight ESM solution helps Finansbank
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
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.