Digital Strength Drives First Growth in Music Sales Since 1999 as File Sharing Declines

Discussion in ' News Discussion' started by MacRumors, Feb 26, 2013.

  1. macrumors bot


    Apr 12, 2001

    AllThingsD points to a report from the International Federation of the Phonographic Industry (IFPI) revealing that 2012 saw the first growth in the music market since 1999, a milestone made possible by the strength of the digital music market.
    The report notes that download sales, a market dominated by Apple's iTunes Store, saw a 12% increase in volume. Downloads still represent 70% of the digital music market even as subscription services continue to make inroads and are expected to cross 10% of the digital market this year.

    In particular, the report points to the rapid globalization of digital music access, with the number of countries having access to digital music growing from just 23 in early 2011 to well over 100 today. Apple's iTunes Store is a major part of that expansion, with the most recent move to add 56 new countries last December extending Apple's music reach to a total of 119 countries.

    The report from IFPI comes just as research firm NPD notes that music file sharing in the U.S. fell sharply in 2012 as customers continue to embrace alternatives such as free streaming services from the likes of Pandora and Spotify. According to the report, the number of peer-to-peer (P2P) music download users fell by 17% last year to account for 11% of Internet users, down from 20% seven years earlier.
    NPD's survey indicates that 40% of consumers who had illegally downloaded music in 2011 had either stopped doing so in 2012 or reduced the amount of downloading, with availability of free streaming services being cited as the primary reason for the shift.

    Article Link: Digital Strength Drives First Growth in Music Sales Since 1999 as File Sharing Declines
  2. macrumors member

    Jan 23, 2009
    Austin, Texas, US

    Most of these music sales are fueled by a failing industry, clinging on to those with just enough talent that would sound ok with auto-tune.
  3. macrumors 68020


    Aug 28, 2008
    Beverly, Massachusetts
  4. macrumors member

    Jul 27, 2012
  5. macrumors 68020

    Sep 12, 2009
    Yep, I always downloaded music (which, I must note, is not illegal over here) but ever since services like Spotify have emerged I do no longer see the need to download music. :)

    You can listen to almost any song, anywhere for just $10 a month. It's ideal and it is so cheap that it isn't even worth it to download music for free, and it is not as expensive as buying your songs on - may I dare - "old fashioned digital services" like iTunes.
  6. macrumors Penryn


    Mar 23, 2005
    I will just make another trip to the library.
  7. macrumors 65816


    Aug 15, 2010
    Seems like good news. Lets get angry about it.
  8. macrumors regular

    Jul 14, 2008
    I truly feel the likes of Spotify and Pandora have caused this shift. If you make most of the music easy to access at a fair price. People will pay for it. And so its starting to happen in the music industry.

    I just wish the TV and Movie industry would follow suite. I would gladly pay 20-30 bucks for a TV/Movie service that offered up 90% of the titles out there in a high quality format >2-5 MB a sec, or better yet the possibility to cache blu-ray quality for viewing with full DTS-HD audio. Give the people a high quality service with >90% of the titles, similar to what Spotify is doing. and people will start paying you money again. Its that simple!
  9. macrumors 604

    Sep 23, 2003
    While it's good to see piracy drop, if the main reason for it is streaming services that compensate the artists practically nothing, that's not really much of an improvement for the actual musicians.
  10. macrumors 6502

    Mar 11, 2009
    Now maybe if the movie studios would take a hint and not charge as much for a digital download as a Blu-Ray, they could see an increase in sales and decrease in piracy as well.
  11. macrumors 6502a


    Sep 26, 2004
    Shocking! Give people easy access and the ability to pay and maybe, just maybe, your industry will survive.

    Ultimately, I am sure they will find some way to spin this as piracy is still killing our business...
  12. macrumors 68000


    Jun 29, 2007
    So most people have what they want in their libraries and there isn't anything new worth pirating...:)
  13. macrumors 68020

    Sep 12, 2009
    Yep, I totally agree. It now feels like as if CDs are ancient and services like iTunes are at best "out-dated". Spotify - for me - is perfect.

    I also feel the same as you about the TV and movie industry. There are just a few video on demand services where I live, and often the most recent movies in the digital library are movies that were available on DVD/Blu-Ray months ago. I'd like to watch an episode of "The Big Bang Theory", "The Following", "Dexter", etc. just an hour after it was first aired wherever in the world. I'd like to watch a movie on the same day it's out on DVD/Blu-Ray.

    I would definitely be willing to pay something like $20 a month - maybe even a little bit more - so I can watch any episode and any movie whenever and wherever I want: whether that is a "Star Trek" episode from the 90s, or an episode of "Anger Management" which first aired just an hour ago.

  14. macrumors 6502a

    Ice Dragon

    Jun 16, 2009
    Louis CK and Bill Burr offer specials they do for $5. If bands release whole albums and such themselves and make it less expensive, file sharing will decline more.

    It's the record companies that make out like bandits as opposed to the artists.
  15. macrumors regular

    Jun 12, 2009
    How is it possible to accurately track the number of files that have been swapped from one hard drive to another?
  16. macrumors 6502


    Oct 4, 2011
    That's just because they shut down Demonoid and are crucifying Pirate Bay.
  17. Moderator


    Staff Member

    Oct 11, 2005
    The Black Country, England
    Physical sales are still earning double the income of downloads, even though they are slowly on the way down. The CD isn't dead yet. :)
  18. macrumors 6502

    Jun 7, 2011
    and its country counterpart: gingham style
  19. macrumors regular

    Jan 16, 2008
    Yeah because those were the only 2 places you could steal music from. :rolleyes:

    The music industry should have developed a better business plan, instead they got one thrust open them.
  20. macrumors 6502


    Mar 19, 2005
    Washington, DC
  21. macrumors 6502

    Mar 11, 2009
    Now maybe if the movie studios would take a hint and not charge as much for a digital download as a Blu-Ray, they could see an increase in sales and decrease in piracy as well.
  22. macrumors member

    May 12, 2011
    Hamburg, Germany
    Which Country would that be?

    (I assume we are talking about downloading without paying)
  23. macrumors regular

    Sep 28, 2011
  24. macrumors newbie

    Nov 24, 2012
    So that's roughly 80%, what consists of the other ~20% of the digital music market?
  25. macrumors member


    Sep 21, 2011
    This situation isn't new. Back in the day (I'm old), we would listen to music on the radio FOR FREE and then buy the song the next day.

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