GLOBAL INDUSTRY ANALYSTS SAYS "GROWTH"

Digital & Online formats to drive sales in the Recording Industry, according to a new report by Global Industry Analysts.

Worldwide recording industry is expected to witness rapid growth, driven by the advent of new recording formats, and music distribution channels. Growth is primarily anticipated to stem from increased demand for digital and online music formats. Age and gender, genre of music, interoperability of equipment and media, and consumer familiarity with latest technology are few of the factors, which influence sales in the recording industry.

Lately, the growing popularity of mobile music, especially among younger consumers in age groups between 18-35 years, has helped spruce up growth in the digital recorded music sector. In addition, growing numbers of single track downloads, music video online downloads, full track audio download, album downloads, and mobile tunes/ring tones, have all contributed significantly to the market's growth.

Music genres such as pop/rock, jazz, and hard rock, are successful in attracting younger generation, while country and pop music are extremely popular among over-30 years population. In recent years, the purchase of music among 15-24 age group consumers witnessed a decline, owing to the rising popularity of free music downloads over the Internet, and widespread availability of MP3 files.

Technology holds enormous significance in the recording industry, as seen in the rising popularity of Internet as a medium for delivery of music. Digital and online music formats are major driving forces in the world recording industry. Online music continues to grow in popularity among consumers and recording companies, with mobile phones and Internet emerging as favored media for downloading music, particularly single tracks. To capitalize on the rising popularity of online music, recording companies are offering licensed online music, a move that is also aimed at countering digital piracy.

While technological advancements have led to the discovery of novel formats and new delivery channels, misuse of technologies, such as the Internet, WAP and other mobile media for illegal music downloads, is emerging as a major challenge for recording companies.