Boom in online music downloads may compensate for declining music sales: Report |
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Published
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Fri, 25 Aug 2006 10:30
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LONDON - A new report by media researchers Screen Digest revealed that while the overall music sales in Europe are declining, the boom in online music sales is helping stem the rot. However the decline in music sales will not be arrested at least until 2010, the report said.
The report added that European spending on online music is set to increase to $1.4 billion over the next four years. "Online music has been booming. However, online sales alone are not going to be enough to halt the decline in music sales," said Dan Cryan of Screen Digest. "The music industry needs to make the most of new delivery platforms. We believe that with the right strategy -- including mobile and online -- the worst might be over by 2010."
The report titled, "Online Music in Europe: Market Assessment and Forecast," says that European music market has suffered to the tune of 22 percent since 2001 due to many factors. Presently around 7 percent of Europeans own a portable music player as compared to just 2 percent in 2001. Portals like Napster and Apple's iTunes are beginning to attract substantial interest and people are buying more music to put on their players.
This year, Screen Digest says Europeans will spend £189 million buying music alone. Physical music sales seem to be declining due to a proliferation in DVD sales as well. "The fact that the decline in physical music sales corresponds to the boom in DVD sales begins to look less like a coincidence and more like a cause," the report added. "The industry must adopt a broader approach to selling music, looking beyond the traditional single and album," Cryan said.
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Digital music sales offset revenue loss in physical music sales, says IFPI 