33% of all music sold in 2008 was digital

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.

$3.7 bln of digital music sold 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.

Top albums of 2008

Rank Title Artist
1 As I Am Alicia Keys
2 Noel Josh Groban
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
Source: Nielsen

Most downloaded songs in 2008

Rank Song Artist
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
9 Disturbia Rihanna
10 4 Minutes Madonna Featuring Justin Timberlake
Source: Nielsen

Most listened songs on the radio in 2008

Rank Song Artist Total Listeners
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
Source: Nielsen

15% of music sold worldwide in 2007 was digital

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.

Only 22% of US Internet users buy CDs in Q3 2008

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.

Top music download sites in Japan

  Audience, 000 Minutes per Visitor Visits per Visitor
Total Audience 57,356 1,049.1 38.3
MORA.JP 1,388 13.3 2.1
MORAWIN.JP 1,375 5.3 1.9
MUSICO.JP 1,055 4.8 1.8
ONGEN.NET 320 7.2 1.3
MUZIE.CO.JP 187 21.3 4.1
Napster 171 93.0 4.4
Source: comScore