'95% of music downloads illegal despite boom'
The digital music business is booming but 95 per cent of downloads are still illegal and not paid for, according to a report published today.
Making money from digital music is "the biggest challenge for music companies" at the moment, according to the International Federation of the Phonographic Industry's (IFPI) Digital Music Report.
It reveals that the digital music business has grown for six years in succession.
In 2008, it grew by an estimated 25 per cent and is now worth 3.7 billion dollars.
Digital music now accounts for 20 per cent of recorded music sales, up from 15 per cent in 2007.
But that success is overshadowed by the popularity of illegal downloading.
The IFPI estimates more than 40 billion music files were illegally shared in 2008.
That compares with 1.4 billion legal single track downloads in 2008, with the top-selling digital single, Lil Wayne's Lollipop, selling 9.1 million units.
The UK saw one of the biggest increase in digital sales in the first half of 2008 with sales up by 45 per cent.
UK consumers downloaded 110 million single tracks in 2008 and 10.3 million digital albums were sold - accounting for 7.7 per cent of the country's albums market.
John Kennedy, chairman and chief executive of IFPI, said: "The recorded music industry is reinventing itself and its business models. Music companies have changed their whole approach to doing business, reshaped their operations and responded to the dramatic transformation in the way music is distributed and consumed.
"There is a momentous debate going on about the environment on which our business, and all the people working in it, depends.
"Governments are beginning to accept that, in the debate over 'free content' and engaging ISPs in protecting intellectual property rights, doing nothing is not an option if there is to be a future for commercial digital content."
IFPI represents 1,400 companies in 72 countries.
Life & Style blogs
Free porn websites could be shut down within months, says David Cameron
National Orgasm Day: Six reasons (plus one bogus one) why they're good for us
What do the emojis on Snapchat mean?
Amazon Prime - how to cancel: after Top Gear hiring, instructions on how to leave premium service
National Orgasm Day: Don't get caught up on climaxing
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
While we fixate on Calais, the Home Office is quietly deporting dozens of migrants on 'ghost flights'
- 1 Free porn websites could be shut down within months, says David Cameron
- 2 Stuart Baggs dies: Apprentice star 'The Brand' found dead aged 27
- 3 Whoopi Goldberg tells Cara Delevingne to suck it up: 'She's not famous. I'M famous'
- 4 1000 people played Foo Fighters simultaneously to try and get them to play their city
- 5 Every club should be like Labour – you can’t join as a new member unless you’re already a member
iJobs Gadgets & Tech
£25000 - £30000 per annum: Recruitment Genius: This digital and print design a...
£50000 - £60000 per annum: Ashdown Group: Report Analyst - Essex - up to £60,0...
£18000 - £25000 per annum: Recruitment Genius: This family run IT service busi...
£32000 - £40000 per annum: Recruitment Genius: This family run IT service busi...