Digital music market worth around 2.0 billion dollars in 2006

Digital music market worth around 2.0 billion dollars in 2006

The International Federation of the Phonographic Industry said in a statement that the global revenues from the digital music market were worth around 2.0 billion dollars in the year 2006.

However, this market contributed just around 10 percent of total music sales in 2006. Unfortunately, the digital music market could not offset a decline in sales of physical music such as compact discs.

IFPI chairman and chief executive John Kennedy spoke about their expectations from this market: “By 2010 we expect at least one quarter of all music sales worldwide to be digital. I would like to be announcing that a fall in CD sales is being compensated for by an equal or greater increase in online and mobile revenues. But that is not yet happening on a global basis.”

South Korea is the sole country where sales of digital music have now overtaken sales of music on physical formats. The group further said: “European markets account for around 20 percent of global digital sales. Despite strong growth in most countries, digital sales in Europe remain concentrated in the top markets — UK, France, Germany, Italy and Spain.”