IFPI Digital Music Report 2005: Facts And Figures

July 23, 2006

The Growing Legitimate Digital Music Market

  • Legal music sites have quadrupled to over 230 in 2004
    • up from 50 a year earlier
    • Over 150 services available in 20 countries in Europe
    • Over 30 services in the UK, more than 20 in Germany and 10 in France
  • Available repertoire has doubled over 12 months to 1 million tracks from January 2004 to January 2005
  • Paid-for downloads up tenfold in 2004 to over 200 million
    • from 20 million up to 140 million in the US (Nielson Soundscan)
    • from zero to nearly 6 million in the UK (UK Official Chart Co, BPI)
    • up dramatically in Germany with nearly one million from Musicload in December (Musicload)
  • The digital music market was worth US$330 million in 2004 – up on 2003 and set to double in 2005 (Jupiter research). This represents about 1.5% of record company revenues
  • Some third analysts and record companies predict digital sales could reach 25% of revenues in five years
  • It is estimated that 50 million portable players were sold in 2004 (IDC), of which 10 million were iPods (Apple)

File-sharing trends

  • Infringing music files on the Internet overall (peer-to-peer and other) are down to 870 million in January 2005 from 900 million in January 2004
  • Infringing music files solely on P2P networks worldwide is an estimated 760 million, down from January 2004’s 800 million and sharply down on April 2003’s one billion
  • A drop of 900,000 users on the most popular peer-to-peer service (FastTrack, which includes KaZaA) since January 2004, from 3.2 million to 2.3 million
  • Use of services other than KaZaA is increasing – but not necessarily of music files. Music files represent a smaller proportion; eg. an estimated 25% of files on eDonkey are music, compared to an estimated 75% on Kazaa
  • 75% of all distribution of illegal music files on P2P networks is accounted for by 15% of individuals (NPD)

Consumer awareness

  • 7 out of 10 people in Europe are aware that file-sharing without permission of copyright holders is illegal
  • More people are buying music online legitimately. The same number of music downloaders say they download from a legal source as from a P2P service (44% each)
  • More people intend to buy music online legitimately. Almost one third (31%) of music downloaders say they are likely to download from a legal service (compared to 22% now) and 55% say they will download from a legal source, including eg artist website (compared to 44% now)
  • Awareness of legal online music services has risen. 49% of 16-29 year olds Dec 2004 are aware of legal ways to buy music online, up from 38% in December 2003 (GfK)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: