UK download sales overtake CDs for first time

[Reading Bug]

Digital download sales overtake CDs for first time to mark milestone for music industry

Digital music revenues have overtaken those of CDs for the first time, marking a milestone for the music industry.

Income from downloads and streaming services made up 56 per cent of the £156million that music buyers spent in the first quarter of the year.

Figures from the British Phonographic Industry (BPI) show cash from digital sales has risen by nearly a quarter, year on year, to £86.5million. At the same time, revenue from physical formats, such as CD and vinyl, slumped by 15 per cent, and now represents just £69.3million.

Album downloads have soared by 22 per cent during the first three months of the year. They bring in more income than single downloads, and this is the second successive quarter in which this has occurred.

For many years the music industry seemed to be fighting a losing battle to convince people to pay for online music, with many simply trading it for free. But the new figures suggest paid-for services have become more of the norm.

BPI chief executive Geoff Taylor said of the first quarter results: "This is a significant milestone in the evolution of the music business. UK record labels have embraced digital to their core, supporting innovation and licensing more new online and mobile services than any other country."

He emphasised that there was a still strong demand for CDs, particularly in the Christmas market.

Figures recently published in the BPI's yearbook show that last year physical formats still represented 64.6 per cent of UK music sales for the year overall.

Last year the UK music industry as a whole was worth £795 million, down 3.4 per cent on the previous year. It was worth £1.2billion in 2003.

Mr Taylor added that the prospects of growth for the industry looked brighter than they have for many years.

Courtesy of The Daily Record - May 31, 2012

[Reading Bug]

Digital music sales outstrip CDs and records

UK digital music revenue has overtaken sales of physical formats such as CDs and records for the first time.

According to figures compiled by the British Phonographic Industry (BPI) digital accounted for 55.5% of the £155.8m spent on music in the UK in the first three months of this year. The impressive growth in digital boosted the record industry's overall market value by 2.7% to £155.8m and helped to offset a decline in sales of CDs.

The BPI's figures show income from digital sales has risen by nearly a quarter year-on-year to £86.5m.

However, revenue from physical formats, such as CDs and vinyl dropped by 15% and now represents just £69.3m.

The BPI's digital music revenues are based on downloads, subscriptions and ad-supported music services. They show digital album downloads have risen significantly during the first three months of the year, with digital now accounting for almost a third of all UK albums sales, up from 23.6%. They have also overtaken revenues from downloads of single tracks for the second successive quarter.

BPI chief executive Geoff Taylor said the results represented a "significant milestone in the evolution of the music business."

"UK record labels have embraced digital to their core, supporting innovation and licensing more new online and mobile services than any other country. As a result, the industry's prospects for growth look brighter than for several years."

But he also said cautioned against becoming complacent.

"We will need to see the trend repeated for several quarters to say we have turned the corner - demand for physical CDs remains strong in the UK."

Music Week head of business analysis Paul Williams warned against writing off the CD just yet.

"People get used to a certain way. In the past the shift has been physical to physical but now it's different; it's physical to virtual. Generally, the older audience prefers to buy the physical format. That doesn't mean everyone, there are some who will download."

Mr Williams agreed that the growth of the downloaded album is significant. But it is "not fast enough to make up the shortfall in the albums market."

"The CD still makes up the majority of album sales in the UK and that's going to remain the case for some time."

Last year the UK music industry as a whole was worth £795m, down 3.4% on the previous year. It was worth £1.2bn in 2003.

Courtesy of BBC News - May 31, 2012

[admin]

I sometimes wonder how I count in statistics. I buy single songs -- never albums.
The #1 thing I hated most about CDs and records was that I was forced to pay $10 for the 2-3 songs (at most) that I really wanted to hear.
I've been burning my own compilation discs since the 1990s.

Rarely did a whole CD pique my interest. The Cars, Bush, Metallica and Nirvana are among those with a few good solid albums.
The "best of" and "greatest hits" discs were always favorites.