Piracy’s Impact On Digital Music Sales

Drawn by Steve Hawtin based on widely quoted d...

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Digital music sales grew globally by 6 percent last year to $4.6Billion. That number accounts for 29% of record company revenues around the globe. According to a new report by IFPI, consumer choice for accessing music via digital channels continued to grow in 2010. It’s recently released Digital Music Study makes a very clear case that digital music piracy has stifled and eroded the music industry.

Case studies included in the presentation cite examples such as in France, where government regulation, awareness campaigns, and even subsidized legal downloads have made headway in lowering the amount of piracy and stemmed the loss of revenues, and in Spain where a once flourishing and highly creative music scene has gone the other way, with nearly half the residents using illegal download sites to obtain music and fewer and fewer new artists are emerging.

The study calls for government action in the form of ISP regulation, consumer awareness campaigns and content protection. It’s an interesting read – certainly worthwhile for anyone hoping to do business in the online music marketplace. You can access the summary and download the study here.

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One response

  1. I have read other studies showing that isnt the case. How about the low quality music that is being produced. The lead singer of slipknot has stated this is also a contributing fact in lower sales. The music companies, which most likely commissioned this study, has always gone on about new technologies destroying their business. Cassettes were a threat for example. They have been going on about this since the 80’s. the main reason for the big spike in sales was everyone changing their music from vinyl to CD. Lower album sales is because people can now buy one song at a time. Kid Rock’s latest album can only be bought whole. and his sales have gone up. he wont allow singles on iTunes etc. The piracy is only a very small part of the picture.

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