Will the Music Four follow the Big Three?
Reuters-UK reported the latest music sales figures from IFPI, the international recorded music trade association. The news is not good. Overall, recorded music sales fell worldwide by 8% to $18.42 billion. The U.S. accounted for much of the fall, dropping 19%.
The transition from CDs to digital downloads continued, with CDs dropping 15% globally while digital sales increased by 24%.
The transition from CDs to digital downloads continued, with CDs dropping 15% globally while digital sales increased by 24%.
Also out from IFPI is its 2009 music report. Among the reports findings, "the Report highlights the critical problem of online piracy, and in particular the impact it is having on the local music sector in markets such as France and Spain." According to John Kennedy, IFPI CEO, "In France in the first half of 2008, album releases by new artists fell by 16 per cent and local repertoire accounted for 10 per cent of albums, compared to 15 per cent in the first half of 2005. In Spain, just one new local artist featured in the Top 50 albums from January to November 2008 - compared to 10 in 2003.""
The four leading music companies -- Vivendi's Universal Music Group, Sony Music Entertainment, Warner Music Group and EMI Group. -- account for most of the sales. Like the once Big Three U.S. automakers, these companies have seen drastic drops in work forces and changes in every aspect of their product acquisition, development and distribution.
The IFPI report is a bit rosier than the numbers suggest. Of course, there will always be a music industry, but what remnants of the former record industry will remain is not yet clear.
The four leading music companies -- Vivendi's Universal Music Group, Sony Music Entertainment, Warner Music Group and EMI Group. -- account for most of the sales. Like the once Big Three U.S. automakers, these companies have seen drastic drops in work forces and changes in every aspect of their product acquisition, development and distribution.
The IFPI report is a bit rosier than the numbers suggest. Of course, there will always be a music industry, but what remnants of the former record industry will remain is not yet clear.
