P2P takes the rap as music sales slump

Global music sales fell 7.6 per cent last year, the fourth consecutive annual drop, with digital and physical piracy and competition taking the blame.

Figures released by the International Federation of the Phonographic Industry (IFPI) revealed that the decline affected virtually all major markets, with western Europe showing particularly sharp falls compared to recent years.

The industry has suffered a decline of 20 per cent over the past three years.

Internet piracy remains a very significant factor in the decline, according to the IFPI, which argues that this research proves overwhelmingly that unauthorised file-sharing translates directly into lost music retail sales.

However, the recording industry is making significant progress in creating its own online music business, with US-based services racking up 19.2 million legitimate downloads in the second half of 2003.

In Europe, around 30 legitimate services offered upwards of 300,000 tracks for download in 2003.

Online sales of physical CDs also continued an upward trend, with an increase in the US from 3.4 to five per cent in volume, and in the UK from 5.6 to 6.6 per cent of total units.

"Global music sales had another difficult year in 2003 under the combined effects of digital and physical piracy and competition from other entertainment products," said Jay Berman, chairman of the IFPI.

"Looking to the future, the recording industry is responding on several fronts. Record companies are making available a large volume of music catalogue for consumers to access online.

"At the same time they are stepping up the fight decisively against online piracy, starting legal actions against illegal file sharing that will be extended in the coming months."

See also:

Legal downloads pass 500,000 mark

BPI celebrates 'breakthrough' for music industry as P2P sites lose their appeal  04 Jun 2004

RIAA sues 493 more P2P users

Total number of suits filed by industry body nears 3,000  25 May 2004

Kids know downloading music is illegal

But it doesn't stop most of them  19 May 2004

Businesses told to beware P2P

Resellers must act as advisors to end-users on P2P threat, says survey  05 Apr 2004

P2P war hits Europe and Canada

International trade body slaps suits on a further 247 file-sharers  31 Mar 2004

Bugwatch: The perils of peer-to-peer

The many dangers lurking in P2P software could affect every internet-connected business  31 Mar 2004

P2P 'no threat' to music sales

Academic research disputes claim that file sharing is hitting CD shipments  30 Mar 2004

BPI threatens legal action over P2P

UK file sharers to be put 'on notice' for offering music on illegal download sites  25 Mar 2004

RIAA presses on with more lawsuits

No-one immune from consequences of illegal file sharing, warns music industry body  24 Mar 2004

RIAA goes lawsuit loopy

US trade body files biggest number of suits yet as P2P crackdown continues  22 Jan 2004

RIAA vs P2P

The US trade body is now bringing the full weight of the law to bear on individuals who dare to download a track or two from the web. But the users are fighting back ...  01 Aug 2003

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