Report: Online Music Sales to Begin to Offset Overall Decline in 2010

Authored by Mark Hefflinger on August 28, 2006 - 12:05pm.

London - Online music sales will begin to offset the decline in overall music sales in the European market, but not until 2010, according to a report from market research firm Screen Digest. The overall European market has lost 22% of its value since 2001, and is expected to continue its current decline until 2010. Meanwhile, the online music market is expected to more than double, from $155 million last year to $358 million by the end of 2006, and is projected to generate more than $1.4 billion by 2010. Growth of online sales is credited to increased penetration of both broadband and portable music players -- which over 7% of Europeans now own. "Online sales alone are not going to be enough to halt the decline in music sales," said Screen Digest analyst Dan Cryan. "We believe with the right strategy -- including mobile and online -- that the worst might be over by 2010. The industry must adopt a broader approach to selling music, looking beyond the traditional single and album."

http://www.screendigest.com/reports/06onlinemusiceuro/readmore/view.html