(16 October 2006 2:00 pm)

MUMBAI: Sales of digital music in the first half of this year rose by 106 per cent to $945 million when compared with the first six months of last year.

Globally, digital sales now account for 11 per cent of the total recorded music market worldwide, up from 5.5 per cent in December 2005.

According to a report put out by the Ifpi the US is still leading the digital revolution, with 18 per cent of recorded music sales now being made through digital channels. Digital music sales in the US increased by 84 per cent to US$ 513 million in the first six months of 2006.

Digital music also accounts for a significant part of the overall market in South Korea (51 per cent), Japan (11 per cent), Italy (9 per cent) and the UK (8 per cent).

The explosion in digital music services, spurred by consumer demand and a widening array of delivery channels, has seen online and mobile music sales grow from $134 million in the first half of 2004 to $945 million in the first half of 2006.

In Japan, Italy and Spain mobile dominates the digital market, accounting for 85 per cent, 76 per cent and 78 per cent of the overall sales respectively. Online downloading is more prominent in markets such as the UK, Germany and the US, where online sales account for 70 per cent, 69 per cent and 64 per cent of digital sales respectively.

Physical music sales declined in the first half period, down by 10 per cent worldwide. This led to total music sales falling by four per cent in the period to $8.4 billion in trade values ($13.7 billion in retail values). Piracy and competition for consumer spending contributed to the first half fall.

There was growth in some markets, such as Japan (12 per cent), South Korea (5 per cent) and Australia (6 per cent), counter-balanced by declines in Germany (-4 per cent), the US (-7 per cent) and France (-9 per cent).

Ifpi promotes the interests of the international recording industry worldwide. Its membership comprises over 1400 major and independent companies in more than 70 countries. It also has affiliated industry national groups in 48 countries. Ifpi's mission is to fight music piracy; promote fair market access and good copyright laws; help develop the legal conditions and the technologies for the recording industry to prosper in the digital era; and to promote the value of music.