Illegal downloads still provide most of the movement in the online music industry with only one in 20 worldwide downloads spoken for, despite music piracy groups ramping up their marketing efforts.Though legitimate music sales have increased over the past year, this did not offset the billions of dollars that was lost due to music piracy, according to a report from the International Federation of the Phonographic Industry (IFPI), as reported by the Associated Press.
CD sales fell 11 per cent worldwide throughout 2006 with similar results expected for 2007, while more users paying cheaper rates has lead to revenue from digital music also showing signs of slowing, said the report.
Revenue gained by record companies rose 40 per cent to $3.33 billion in 2007, however this still doesn’t counter the losses felt elsewhere.
The report also said that from $435.75 million in 2004, digital revenue almost tripled in 2005 and then nearly doubled in 2006, but the 40 per cent increase in 2007 means revenue is slowing.
