IFPI STILL POINTING AT PIRACY AS THEIR BIGGEST ENEMY

IFPI Digital Music Report 2010 concludes new licensing deals help push digital music sales to 27% of global revenues - and that piracy is damaging investment in artists.

So, though digital channels are on the rise, the recording industry still claims digital piracy is the main cause for the overall 30% drop in music sales they've seen the past five years.

According to the report more than a quarter of all recorded music industry revenues worldwide are now coming from digital channels, as music companies license music in partnership with ISPs and mobile operators, subscription services, streaming sites and hundreds of download stores.

However, the report says - despite the continuing growth of the digital music business, with trade revenues up 12% to an estimated US$4.2 billion in 2009 - illegal file-sharing and other forms of online piracy are eroding investment and sales of local music in major markets.

The IFPI report claims that, while the music industry has increased its digital revenues by 940% since 2004 - piracy has been the major factor behind the overall global market decline of around 30% in the same period. Overall, global music sales in the first half of 2009 were down by 12% (physical and digital sales) and full year figures are likely to see a similar trend.

Without doubt piracy has negative effects on sales figures - but on the other hand it's questionable if all that illegally downloaded music would have been purchased in the first place.

The music industry still thinks in term of investments in artists, and forgets that at the same time this type of thinking may be a major reason why the public shows less interest in purchasing music.

In contrast with big selling genuine pop stars that started making fame in the 70s and 80s, many of the next generation popstars were artificially created by exactly those investments the music industry is now so desperately trying to protect.

Music lovers turned away from these so-called stars, while the younger generation preferred to adore sportsmen and other real people outside of the music industry. They spend lots of money on sportswear that identifies them with their own heroes - no wonder music sales went down!

If interested, the full report is available for download from IFPI's website.

  IFPI