But back to Midem, and despite the optimism surrounding the growth of legitimate digital music sales revealed in that report from the International Federation Of The Phonographic Industry last week, the first day of the industry convention was concerned with declining record sales after the global trade body's chief admitted that over all sales figures were down again in 2005. Speaking at Midem, IFPI chairman John Kennedy said that early indications are that recording sales last year were down 2% on the previous year. Sales in 2004 remained flat at $33.6 billion, following four consecutive years of decline.
Commenting on those figures, EMI Group chairman Eric Nicoli, giving the keynote speech at the Midem digital music spin-off Midemnet, said that increased competition in the media and entertainment space was in part responsible for the music business's ongoing decline. Nicoli: "Piracy in all its forms has been the major factor in this reversal but [it's] not the only factor. Twenty years ago there were no mobile phones, no DVDs, no computer games to speak of. In categories that did exist, like magazines, cosmetics and designer clothes, we've seen a massive explosion of choice and accessibility to consumers. So no surprise, then, that music sales have come under pressure."
Commentators outside the industry, however, said that record labels couldn't blame all their woes on piracy and new competition. Phil Leigh, an analyst with US market research firm Inside Digital Media, told reporters this weekend that a failure to properly invest in new talent was part of the reason: "Executives have focused so much of their attention on piracy that they've diverted their efforts from developing new talent".