The recording industry downturn is now an across-the-board, global phenomenon, according to information recently released by the IFPI.
The report, released this week, reaffirmed recent declines in the UK and Australia, previously resilient markets. The IFPI, which tracks global sales of recorded assets like CDs, reported a 5 percent sales slip last year to $19.6 billion overall, and an 11 percent drop in shipment valuations to $17.5 billion. Meanwhile, the organization pointed to a rough-and-tumble 2007, a period that includes a 7.3 percent drop in the US market, and a 6.7 decline in the UK. The US figure issofter than estimates from groups like Nielsen Soundscan , though few would characterize the picture as healthy. Meanwhile, the IFPI pointed a strong finger at illegal file-sharing, and noted that more than 20 billion tracks were swapped last year alone.
On the paid side, the digital story continues to grow rather aggressively. According to the report, global digital sales boomed 85 percent to $2.1 billion last year, and growth is expected to push past 50 percent this year. Digital sales now account for 11 percent of total recorded sales, according to the group, though that calculation is skewed by a sharply shrinking pie. And digital growth rates, despite being aggressive, are beginning to cool somewhat from earlier gains. Moreover, the figures offer little hope of a digital offset, once a predicted result.
Meanwhile, revenues from performance-related licensing bumped 8 percent to $728 million, and the industry is aiming to bolster that figure considerably in the coming years.
Story by news analyst Alexandra Osorio.