Tuesday, October 04, 2005

Tues - Digital music sales soar in first 6 months of 2005

Revenue from digital music sales has soared, more than tripling in the first six months of 2005. This partly offset a decline in overall music sales.

Overall digital music sales reached around $790M for the first half as opposed to $220M during the same period a year earlier.

The figure represents 6% of total record industry sales, which overall are still declining, and was driven by the growing availability of broadband, portable music players and 3G mobile phones.

The music industry has experienced sales declines in four of the past five years, amid a scourge of piracy. Yet executives seem heartened because of legal decisions this year against Grokster and Kazaa amongst others, as well as market research that suggests there is a growing willingness by consumers to purchase music legally online.

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