Digital music industry sales triple worldwide, says IFPI

London (England) - A report released yesterday by the International Federation of the Phonographic Industry, the global consortium of music publishers and licensing bodies, estimates that sales of licensed digital music tracks worldwide reached US$1.1 billion in 2005 - an increase of 289% over the consortium’s figures for the prior year.

The report also cites figures from ratings and analysis firms from various countries, attesting to the global nature of the explosion of the online music business. A Nielsen SoundScan estimate cited by IFPI states Americans downloaded 353 million legal tracks in 2005, up from 143 million in 2004. Britons downloaded 26.4 million tracks in 2005 versus 5.8 million the prior year.

Earlier in the week, Apple chief financial officer Peter Oppenheimer told reporters that his company’s iTunes service had reported a total of 850 million downloads since its service was launched in January 2001. Oppenheimer also cited Nielsen figures stating iTunes currently enjoyed an 83% US market share.

The market is growing, IFPI says, partly because the number of suppliers is growing : up to 335 in 2005, up from 230 the prior year, and 50 in 2003.

A very interesting set of figures from the IFPI report, that might otherwise be buried in self-congratulation, is an estimate that revenues from digital music now constitute 6% of the total revenues earned by global music publishers. Of that amount, 40% can be chocked up to sales from mobile music services, for customers using communications devices to connect to their music. With only the Motorola ROKR phone providing built-in iTunes service, Apple is not yet a major player in this particular segment, though there’s little doubt it could become one.

In a prepared statement, John Kennedy, chairman and CEO of the IFPI, said, "The music industry has a common aim with the telecoms companies and ISPs. But we cannot realize this aim alone. Service providers and music distributors must help us - and in doing so, they will help themselves. If you want content, then it needs to be respected and cared for, not abused."