Album sales plunge in '07 as digital growth slows
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If only Christmas came a few times  a year for the fast-fading U.S. music industry.
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DRAM and CPU price drops will slow growth of the global market in 2007, analysts say.
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LONDON (Billboard) - The global recorded music market fell for the seventh consecutive year in 2006, and the slide is accelerating in 2007, according to figures published by a music trade group.
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Although the record companies raked in $2.9 billion in revenue from digital music sales in the past year -- up 40 percent -- the collapsing CD market is dragging them down.
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MIAMI/LOS ANGELES (Billboard) - After years of modest  results, the digital marketplace in 2007 finally began to yield  considerable revenue streams for Latin labels and acts.
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Global sales of recorded music fell for a fourth consecutive year in 2003, according to figures released Monday by the International Federation of the Phonographic Industry.
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Global sales of recorded music slid 1.3 percent in the first half of 2004, but the rate of decline was slower than in previous years, a leading industry group said Thursday.
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U.S. album sales were down 4.2 percent in the first half of the year, but sales of music downloaded online soared 77 percent, according to industry figures.
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The Number Two online music retailer reports record downloads to close out 2007.
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Music sales last year are expected to be down by 10% despite the growing popularity of the digital music market.
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Sales at Apple's online music shop iTunes Music Store dropped off dramatically in the first six months of 2006, according to market research firm Forrester.
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Digital music, distributed online or by mobile networks, accounted for $2.9 billion in sales worldwide, up from $2.1 billion a year earlier, the industryâs international trade group said.
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Music sales fell faster in 2007 than 2006 due to a sharp fall in CD sales and competition from illegal file sharing.
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The holiday mood at independent music retailers is one of cautious optimism, despite Nielsen SoundScan numbers showing that overall sales at U.S. indie merchants were down 7.1% from last year as of Nov. 28.
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CANNES, France  - Away from the headlines of job  losses, grumbling artists and falling global sales, the music  industry is trying new business models to boost digital sales  and offset the decline in CDs.
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Pundits have noted that Apple showed only 5% iPod unit growth over last year's Q1, but the real comparison has to include the iPhone, which replaces any potential iPod sale. Even then, growth is slowing.
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So far 2008 has not been a good year for music sales. This week Alicia Keys, below, stays atop the Billboard chart with âAs I Amâ (J), but the number of copies that CD sold is barely above the historic low for a No. 1 album. Nielsen SoundScan reported that 61,000 copies of the album sold last week; the least number of weekly sales for No. 1 is 60,000, set by the âDreamgirlsâ soundtrack a year ago. (The numbers are rounded.) This week the âJunoâ soundtrack (Rhino) is at No. 2 with 58,000, Mary J. Bligeâs âGrowing Painsâ (Geffen) is No. 3 with 52,000, and Radioheadâs âIn Rainbowsâ (ATO) is next with 46,000. The R&B singer Raheem DeVaughn opens at No. 5 with 45,000 sales of âLove Behind the Melodyâ (J) and John Legendâs new âLive From Philadelphia,â available only through Target, reached No. 7 with 33,000.