By George Anderson
Thank you, Steve Jobs.
According to the International Federation of the Phonographic Industry (IFPI), the digital music market has tripled in the past year and now represents six percent of total industry sales.
Apple Computers' iPod and iTunes Music Store download service have helped increase the visibility and ease of obtaining digital music legally. In the first six months of the year, global consumers spent $790 million downloading tunes, compared to $220 million for the same time period from the year prior.
IFPI Chairman and CEO John Kennedy said in a released statement: "The digital music boom is continuing and it is growing at an exciting pace for the music industry, for online retailers and for consumers. More and more people in a growing number of countries are turning to the new legal ways of downloading music on the Internet or via mobile phones."
While downloaded music is growing, purchases of pre-recorded compact discs is continuing to fade. The IFPI reports that "physical music" dollar sales fell 6.3 percent for the first six months of 2005 compared to the same time frame a year earlier. Unit sales were off 3.4 percent.
In the U.S., physical music sales were off 5.3 percent in dollars and 5.7 percent in units.
Moderator's Comment: What are the implications of the IFPI report for retailers in the music business? Where do you see the digital music and entertainment business heading? - George Anderson - Moderator