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Archived updates for Thursday, January 27, 2005

Over Two Hundred Million Music Tracks Downloaded in 2004

The International Federation of the Phonographic Industry (IFPI) is reporting that
  • Record companies have digitised and licensed over a million songs. In 2004 the available catalogue on the biggest online services doubled from around 500,000 to around one million tracks
  • The number of online services where consumers can buy music has increased four-fold to more than 230 worldwide – and over 150 of those are in Europe
  • Services like iTunes and Napster have become household names internationally – but local repertoire services in many countries are also developing fast
  • The digital download market is growing geometrically – in 2004 downloaded tracks
    rose more than ten-fold to over 200 million in the US, UK and Germany combined
  • Record companies have seen their first year of significant revenues from digital sales – from practically zero to several hundred million dollars. Jupiter thinks this will double in 2005.
  • Digital sales could rise to as much as 25% of total sales in five years, according to some record companies and third party analysts
  • Consumer attitudes are changing – the latest IFPI European survey shows increasing awareness of, use of, and intentions to use, legal download services
Also according to the report, the aim of the record industry’s educational and anti-piracy actions is to help create "a breathing space for the burgeoning online music market, to raise awareness, change attitudes and contain illegal file-sharing." They even include a clever quip from Steve Jobs:
"iTunes really competes with piracy, not with the other services. Piracy is the
big enemy. Buying music online legally is good karma."

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