Digital music companies have reached $1.1 billion in revenue last year. The International Federation of the Phonographic Industry (IFPI) estimates that online downloads will account for up to 25% of the global music industry’s revenue.
The number of single downloads has doubled to 420 million in 2005, and the number of subscription users has increased to 2.8 million. The most popular single of the year was “You’re Beautiful” by James Blunt.
“The growth rate will be even stronger in 2006 as the sector continues to mature and new music distribution channels emerge,” stated John Kennedy, President of IFPI. “In the UK and Germany, the two largest digital music markets in the world, the total number of customers downloading legally from sites has far surpassed the number of users downloading pirated files.”
The number of songs available online has also doubled compared to 2004. IFPI estimates there are currently around 165,000 albums available on the internet.
