Washington, DC (January 26, 2005)–IFPI, the trade organization representing the international record industry, has released the 2005 Digital Music Report highlighting and cataloguing the enormous progress of the legal digital music marketplace across the world in 2004.
Mitch Bainwol, chairman and CEO, Recording Industry Association of America (RIAA), commented, “One of the biggest stories of 2004 has been the phenomenal popularity of legal digital music services. The public’s growing appetite, both here and abroad, for high-quality, legal online entertainment services is encouraging news for all those involved in creating music and bringing it to the public. We still have much work to do. The trend lines nonetheless point in the right direction, and the future of legitimate online music looks bright.”
IFPI Digital Music Report 2005: facts and figures
o Legal music sites have quadrupled to over 230 in 2004 up from 50 a year earlier
o Over 150 services available in 20 countries in Europe
o Over 30 services in the U.K., more than 20 in Germany and 10 in France
o Available repertoire has doubled over 12 months to 1 million tracks from January 2004 to January 2005
o Paid-for downloads up tenfold in 2004 to over 200 million in U.S. and Europe from 20 million up to 140 million in the U.S. (Nielsen Soundscan)
o 5.5 album sales in U.S. (equivalent to over 60 million tracks) from zero to nearly 6 million in the U.K. (U.K. Official Chart Co, BPI), up dramatically in Germany with nearly one million from Musicload in December (Musicload).
o The digital music market was estimated to be worth U.S. $330 million in 2004–up on 2003 and set to double in 2005 (Jupiter research).
o Some third analysts and record companies predict digital sales could reach 25 percent of revenues in five years (compared to about 1-2 percent currently)
o It is estimated that 20-25 million portable players were sold in 2004, of which 10 million were iPods (Apple).