Print 21 comment(s) - last by Spivonious.. on Jul 8 at 11:22 AM

Music labels still expect to see sales drop by $5 billion

With traditional music sales of CDs plummeting, music labels are looking for alternate revenue streams. While record labels see higher profit margins from physical media sales like CDs, the huge volume of sales that digital downloads can deliver may offset the lower profit margins.

According to a new study from research firm eMarketer, traditional music sales will continue to decline, but online and mobile music sales will grow rapidly. As faster mobile networks are introduced around the country, digital music downloads will become faster and easier for users to purchase.

The report predicts that by 2011, mobile music sales will be a $7.3 billion business. In 2007, mobile music sales amounted to $1.7 billion and by the end of the year sales are predicted to total about $3 billion. In 2009 the number is expected to hit $4.8 billion and by 2010 the mobile music industry will be worth $6.2 billion.

Despite the huge growth to be seen in the mobile music market, Information Week reports that the music industry expects to see a decline in music sales of about $5 billion. The report includes master recording ring tones, full-track audio downloads, ringback tones, music video downloads and streaming services in the predicted market worth.

There are many mobile services looking to cash in on the massive growth expected for mobile music downloads. Apple’s iTunes music download service is currently the top digital music retailer and Apple has said it plans to enter the mobile music market with ring tones and more.

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Place the blame where it belongs
By phatboye on 7/7/2008 2:25:32 PM , Rating: 2
They need to look at their top 40 "artist" as the reason for the slump in music sales. There isn't anything worth buying. There are very few artists whoose music I'd even consider downloading online let alone paying for their entire album. Don't go off and place the blame on legal/illegal digital downloads when the real problem is the lack of good music.

RE: Place the blame where it belongs
By Spivonious on 7/7/2008 3:11:38 PM , Rating: 2
You do know that Top 40 lists are generated from sales data, right?

RE: Place the blame where it belongs
By ebakke on 7/8/2008 2:54:06 AM , Rating: 2
If a record sold 1 million copies, or 12 copies it'd still be in the Top 40 if less than 39 other records sold more.

Sure it's based on sales data, but it's all relative to the other records/artists. It's today's top 40, not the all time top 40.

By Spivonious on 7/8/2008 11:22:43 AM , Rating: 2
Yep, and it just goes to show you that people like buying crap these days.

"What would I do? I'd shut it down and give the money back to the shareholders." -- Michael Dell, after being asked what to do with Apple Computer in 1997

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