Despite global digital sales growing 24.1 % to $3.78 bln and performance income by 16.2% in 2008, European music sales finished down 8.3% at $18.4 bln after a 15.4% collapse in physical sales.
According to The NPD Group, the number of Internet users paying for digital music increased by just over 8 mln in 2008 to 36 mln Internet users. Purchases of online digital music downloads increased by 29% since 2007; they now account for 33% of all music tracks. There were nearly 17 mln fewer CD buyers in 2008 compared to 2007. The decline in music purchasing was led by a 19% drop in CD sales. Only 58% of Internet users reported purchasing CDs or digital music downloads 2007, versus 65% in 2007.
Awareness and usage of Pandora, a leading online radio station, doubled YTY to 18% of Internet users; one-third of those who were aware of Pandora report using the service. Share of consumers claiming to listen to music on social networks climbed from 15% in Q4 2007 to 19% in Q4 2008. Nearly half of US teens are engaging with music on social networks, which is an increase from 37% a year ago; among college-age Internet users, the share increased from 30% in 2007 to 41% in 2008.
IFPI reported legal digital global sales in 2008 grew by an estimated 25% to $3.7 bln in trade value, to account for about 20% of the industry’s global recorded music sales, up from 15% in 2007. 95% of the music downloaded in 2008, or more than 40 bln files, was illegal and not paid for.
|1||As I Am||Alicia Keys|
|3||Tha Carter III||Lil Wayne|
|4||Long Road Out of Eden||Eagles|
|5||Taylor Swift||Taylor Swift|
|6||Rock N Roll Jesus||Kid Rock|
|7||Viva La Vida or Death and All His Friends||Coldplay|
|8||NOW 26||Various Artists|
|9||Carnival Ride||Carrie Underwood|
|10||The Ultimate Hits||Garth Brooks|
|1||Low||Flo Rida Featuring T-Pain|
|2||Bleeding Love||Leona Lewis|
|3||Lollipop||Lil Wayne Featuring Static Major|
|4||I Kissed a Girl||Katy Perry|
|5||Viva La Vida||Coldplay|
|6||Love Song||Sara Bareilles|
|7||Apologize||Timbaland Featuring OneRepublic|
|8||No Air||Jordin Sparks Duet With Chris Brown|
|10||4 Minutes||Madonna Featuring Justin Timberlake|
|1||No One||Alicia Keys||3,084,014,000|
|2||Low||Flo Rida Featuring T-Pain||3,025,670,000|
|3||Bleeding Love||Leona Lewis||2,754,498,000|
|4||Apologize||Timbaland Featuring OneRepublic||2,508,246,000|
|5||Lollipop||Lil Wayne Featuring Static Major||2,365,270,000|
|6||With You||Chris Brown||2,348,062,000|
|7||Love in this Club||Usher Featuring Young Jeezy||2,280,490,000|
|8||No Air||Jordin Sparks Duet With Chris Brown||2,170,133,000|
|9||Sexy Can I||Ray J & Yung Berg||1,926,995,000|
|10||Take A Bow||Rihanna||1,920,855,000|
Total album sales fell 14% to 428.4 mln units in 2008, according to Nielsen SoundScan. This follows a 15% drop in 2007, and sets a new low since the firm began monitoring sales in 1991.
In 2007, online music distribution represented about 23% of revenue in the US, and about 15% worldwide. As a percentage of total revenue in the US market, physical media (CDs, LPs, DVD-A and so on) have gone from 91% of revenue in 2005 to 77% in 2007. There is also evidence that physical retailers are even reducing the physical floor space dedicated to CDs. Enabling the transition away from retail music CDs toward online distribution is now in sight, given that 77% of U.S. households (a total of 96 mln connections) will have broadband connections by 2012, Gartner reports.
YTY consumer demand for music among Internet users in the US fell 2% in Q3 of 2008. The proportion of US Internet users, age 13 and older, purchasing a CD in the prior month fell from 25% in Q3 2007 to 22% in Q3 2008. NPD estimates that the volume of CDs purchased declined by 19%. The most dramatic declines in CD sales volume were among teens (down 34%) and among adults age 26 to 35 (down 36%). CD purchases by adults age 36 and older showed a more moderate decline of 10%. 15% of Internet users purchased music from online music stores, such as AmazonMP3, which is an increase of 2% over 2007 and equates to approximately 2.8 mln additional music-download customers. Legal music download volumes increased by 29% in Q3 with positive numbers seen for all age groups except the 50-and-older segment.
|Audience, 000||Minutes per Visitor||Visits per Visitor|