Legal digital downloads supplementing the loss of CD sales

October 4, 2005

Digital
sales continue to grow in popularity with a staggering amount of
consumers downloading the online versions. With more than a 300% rise in
growth over the previous year, the digital tracks are helping to offset the
decline in CD sales which has led to a small, but overall dip in music
sales.

Spurred by the iPod revolution, digital music sales
totaled $790 million in the first half of this year, equivalent to 6
percent of industry sales, the International Federation of the
Phonographic Industry estimated in a report Monday.

That compared to $220 million in the same period last year.

Recorded music sales fell 1.9 percent to a retail value of $13.2
billion in the first half of this year, compared with $13.4 billion in the
same period last year.

The digital music sales figure in the IFPI report was based on record
company estimates. It includes purchases of individual tracks online,
music subscription service fees, and sales of full-length tracks and clips
of master recordings for mobile phones.

The tripling in digital music sales "indicates more consumers are
turning to the Internet as a source of music and wireless music services
as a source of music as well," said Susan Kevorkian, a research analyst
with IDC.

We have to consider (and most that visit here have said
as much already) that digital downloads offer the consumer a distinct advantage
over the purchase of a CD besides convenience. It is the ability to cherry pick
just the tracks they wish to carry in their personal players and not be charged
for the fluff found in many CD's in the marketplace. Physical CD singles do not
seem to be an attractive alternative for consumers either, as this study
indicates that the sales of these items is shrinking as
well.

Source: AP News MyWay