New figures from the International Federation Of The Phonographic Industry released yesterday show a mixed picture of the global music industry's current fortunes. There was growth in some territories and digital revenues continued to grow, but there was also significant declines in certain key markets as CD sales continue to fall.
Overall, global shipments of “physical soundcarriers" fell by 10% in the first half of 2006, generating trade value of $8.4 billion, 4% less than the corresponding period in 2005. As a result some key markets also saw overall declines - Germany was down 4%, the United States down 7% and France down 9%. The trade association says that piracy and increased competition for consumer spending are both key factors in the declines.
However, not everything in the IFPI report was doom and gloom. Some markets grew at the start of the year - Japan was up 12%, South Korea 5% and Australia 6%. Digital sales, meanwhile, were up across the board. The value of the digital music sector rose to $945 million, up 106% on the same period in 2005. This means the digital sector now accounts for some 11% of worldwide music sales.