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Digital sales will account for 40% of music purchases by 2012

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Digital sales of music represented 10% of the total worldwide music market in 2007, up from 6% in 2006, reports In-Stat. By 2012, digital music sales will represent an impressive 40% of all music purchased worldwide, the high-tech market research firm says. Factors contributing to this growth include the global expansion of broadband, continued demand for single-track downloads, and expanding music catalogues. Another key driver is the potential for market growth in full-track downloads to mobile handsets in markets other than Japan, which currently is the primary market for this type of digital music format.

"Digital piracy continues to represent the primary challenge to online music service providers," says Stephanie Ethier, In-Stat analyst. "Other obstacles still include the lack of interoperability between services and devices due to differing digital rights management (DRM) technologies, and weak consumer demand for subscription-based services. Another potential market inhibitor is the fact that content owners, cellular service providers and handset manufacturers are increasing the amount of marketing and promotion for mobile music."

Recent research by In-Stat found the following:

* Sales for online digital music reached $3.05 billion in 2007, up 48% from 2006.
* Revenue for worldwide full track mobile downloads will reach approximately $4.2 billion by 2012.
* The majority of respondents who accessed online video (72.3%) in 2007 did not pay for the video they saw from the Internet.
GRENZENLOS

11 responses // Digital sales will account for 40% of music purchases by 2012

  •  

    The problem with digital music is that they ask to much for it. If I really like an album I’ll go buy it at the store. That way I have a quality cd, album art and a case to carry it around in. Its ridiculous to assume that I should pay .99 cents a song when the only thing I’m getting is a mp3 file. What a rip off.

    Ricky84
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    watch this comment being used here, here, here, here and here

    I'll admit that I still download music illegally but if it weren't for programs like Soul Seek, I don't think smaller or unknown bands would get as much of attention.
    It's all about the actual CD and the artwork that comes with it, I like the whole package not just 75% of it.

    ice_monster
  •  
    watch this comment being used here, here, here, here and here

    I would predict that lots of those digital downloads will not be purchases at all. So many artists are realizing the benefits of ditching the greedy record label and releasing it for a price of "whatever you want".

    But I prefer digital downloads over CD's either way.
    a) They cost less. 5-6 bucks is not worth a cd case.
    b) You get the music now. There is no going to the store, no ripping to your computer. You click buy, you listen.
    c) No waste. Its the most environmentally friendly way to buy music.

    RonenA
  •  

    emusic.com is the way to go for budget music while still supporting the independent labels. 20-30 cents per track.

    itunes blows, theyhave 90% market share for digital music in america, emusic is in second place with 5% or so.

    so hmmm i could get one shitty commercial track or i could get three by awesome artists of all genres on independent labels. easy choice.

    sustainablejohn
  •  

    eMusic is awesome. I pay 25 bucks a month (the price of 2 CDs where I live, usually) for 100 high-quality, DRM-free downloads.

    bryneyancey
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    The future of music is back to the stage and live music. CD's create too much waste. The first "CD" to win the Pulitzer was Ornette Coleman's live concert "Sound Grammer" An american musician in his 70s still pointing his horn to the future.

    pacebp
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    Oh my god what are you saying Pace? Everything creates waste! With that mentality there is no way to listen to music at all. You can’t go watch it live because the guitars and other instruments create waste. Dammit you can’t even sing or beat box cause that produces CO2.

    Ricky84
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    Why are CD's in plastic wrapped in plastic. Screwgun Records has been using cardboard sleeves for years. Get with it CDs are a technology of the past.

    pacebp
  •  

    good........

    KINGSTON916
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    Cardboard sleeves that's nice. I wouldn't be opposed to that. Anyway CDs might be old tech in comparison to the recent digital boom but people still buy vinyl’s. So I don't see Cds going away anytime soon.

    Ricky84
  •  

    gar, i be a music pirate

    diode

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