The Internet music business appears to be booming. After overcoming the “Napster” stigma, online music stores have seen a dramatic increase in customers and sales/downloads.
According to study done by International Federation of the Phonographic Industry (IFPI), more than 200 million songs were legally sold from music sites in 2004. These figures represent a tenfold increase from 2003. Not only have downloads increased, but the amount of stores offering individual songs for sale has grown too. Currently, there are over 230 of online music stores in over 30 countries.
Because of the increase in online music stores, there are an estimated 1 million songs available to customers. Revenues from online music sales for 2004 were around $330 million. This total is expected to increase, perhaps even double, in 2005.
John Kennedy, IFPI Chairman and CEO said: “The biggest challenge for the digital music business has always been to make music easier to buy than to steal. At the start of 2005, as the legitimate digital music business moves into the mainstream of consumer life, that ambition is turning into reality.”
“The record industry’s priority now is to license music – to as many services, for as many consumers, on as many formats and devices for use in as many places and countries as it can. The straightforward conditions are that the business must be legitimate, the music must be correctly licensed, and record companies and other rights holders must get properly paid.”
The IFPI credits the popularity of portable music players like the iPod and mobile phones for the growth in online music sales.
Chris Richardson is a search engine writer and editor for Murdok. Visit Murdok for the latest search news.
