Music Sales Down for 7th Year

Music sales went down globally for the seventh straight year, with 2007 marking a sort of ramping up of the downturn, according to London-based International Federation of the Phonographic Industry (IFPI). Physical music shipments dropped by 11% to $17.5 billion last year while distribution through digital channels such as mobile services and online music stores jumped 85% to $2.1 billion (and this doesn't account for downloaded ringtones for cell phones).

IFPI CEO John Kennedy reflected that the results "reflect an industry in transition." The trouble is, does the industry recognize it, and are they going willingly? As sales decline in the US (7.3%) and the UK (6.7%) piracy seems to be the entity receiving all the blame.

Offsetting the global decline are a handful of countries (including Japan, India, China, and Russia (if you can believe that) which posted growth during the year. They only include one of the top ten markets, however, which include the US, UK, Germany, France, Canada, Australia, Italy, Spain and Mexico (Japan is also part of this group).

Online sales are in steady appreciation while physical sales continue to decline through the reduction of physical store space by retailers like Wal-mart. It's an interesting trend to see the blame leveled consistently at illegal downloads, with blame rarely if ever, falling on the music industry itself - which seems to be self-destructing under it's own inability to adapt and allow for artistic expression. Suing deceased grandmothers is probably not going to result in a stabilization of the industry. If the RIAA doesn't start being proactive in the non-lawsuit side of the business this decline will continue, with executives shaking their heads in clueless wonder at how additional lawsuits didn't turn them more profits.