Online Music Sales Exceeded $6 Billion a Year

FireZ · Nov 14, 2011

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While entertainment industry keeps complaining that Internet music is harming the business, online music sales continue to increase by almost half a billion dollars annually. However, the expectations are that they wonâ€™t overtake CD sales until the end of decade.

According to recent statistics, worldwide revenues for Internet music sales are expected to reach $6.3 billion in 2011, which is almost half a million more than the 2010 results. This trend is predicted to continue with estimated $6.8 billion in 2012 until finally hitting $7.7 billion in 2015. These figures mean that industry business models begin taking Internet music into consideration, after ten years since Napster emerged online, before much burying of heads in sand by the music industry.

Today the industry wonâ€™t see those ridiculous profits for the music industry that it had obtained from the overpriced CDs â€“ earlier, it could see shelling out the best part of $30 on a disc, but the tendency is fast fading. Instead, more and more people receive access to electronic devices on which they can listen to tracks digitally. Whether the fashion is about MP3 players or smartphones, CD sales will undoubtedly continue to spiral downwards.

Consequently, the industry observers expect further drops to profits from CD sales â€“ for instance, revenues of $15 billion are predicted to sink to $10 billion over 5 years from 2010 to 2015. In other words, CDs will actually represent the majority of cash earned by music labels up to the end of this decade, pretty much time after file downloading started to become popular.

In a number of areas this is expected to happen in the nearest future, in others â€“ a bit later. For example, in the United States the online music market has almost reached maturity, and currently features online growth in the double digits levelling off. As for the future, this growth is predicted to stay flat. The same is observed in Western Europe and Japan, while regions like Latin America and the Middle East picking up on Internet music more slowly.

In most cases increases in revenue are stipulated by the rise of subscription based services like Spotify. Despite the fact that such websites canâ€™t offer much in terms of remuneration to musicians and labels, they are still quickly growing in terms of funding the music industry.
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howcow95 · Nov 14, 2011

If I really enjoy a particular band I will support them even though they may not need it. Otherwise, the music industry can kiss my ass. Seriously, they have no reason to complain.

kill dank · Nov 14, 2011

Oh, and illegal downloading hurts them so bad.

FeCoola · Nov 14, 2011

I honestly think all of this will be replaced by Spotify

capper4lyf · Nov 14, 2011

lol nice, im actually not surprised its going up because Itunes promotes itself so much and pretty much everyone uses it now. I could only imagine how big they would be if we couldn't download free music, though thats the thing. They're just greedy and know the possibilities of how much more they could make.

Next to none · Nov 14, 2011

i DL every album i can, mainly because i dont want to go buy what i can get free, tho i do go to concerts and they do cost a fair bit of money for the seats i want.

Snatchmasta · Nov 14, 2011

I'll either illegally download songs, or buy the vinyl. I'm not paying 1$ a song for shitty audio quality in a terrible file format. Concerts also

Piramid · Nov 14, 2011

FeCoola said: ↑

I honestly think all of this will be replaced by Spotify
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Agreed, Spotify is definitely growing.

chic_raw · Nov 15, 2011

wow im surprised they make this much. I thought everyone just downloaded for free lol but yea CDs are definitly going downhill.. Cant remember the last time i actually bought an album

RA1fu · Nov 15, 2011

kill dank said: ↑

Oh, and illegal downloading hurts them so bad.
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This! Like seriously get over yourself you make enough money as it is.

Duly · Nov 15, 2011

Im a weird one, i download something illegally and if i like it ill go out and buy it...

Larsiny_family · Nov 16, 2011

Duly said: ↑

Im a weird one, i download something illegally and if i like it ill go out and buy it...
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lol i do the same thing... i always get the cd after

MiitchellS · Nov 16, 2011

Imagine that without the illegal downloads o.o...

Platypi · Nov 16, 2011

Wow this number impressed me considering how many people download illegally, am I the only one that still buys albums?

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Online Music Sales Exceeded $6 Billion a Year

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Online Music Sales Exceeded $6 Billion a Year

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FireZ BRZ Club Member (2014)

howcow95 Apprentice

kill dank Hero

FeCoola Apprentice

capper4lyf Grand Master

Next to none Active Member

Snatchmasta Apprentice

Piramid 20XX

chic_raw Forum Addict

RA1fu Apprentice

Duly Guru

Larsiny_family Active Member

MiitchellS Member

Platypi He's a Platypus; they don't do much