Evolution of the Online Music Industry

The Evolution of the ONLINE MUSIC OINDUSTRY O There are plenty of misconceptions about the online music industry. It isn't all illegal, and artists do get their fair share when legitimate download sources are used. Take a look at how the industry has evolved--even surpassing physical music sales. FROM 2000 - 2010 RECORD STORE SALES (76% DECREASED OVER EXPECTED TO DROP 77.4% MORE BY 2016 Historical Sales: ALBUMS SHIPPED ACROSS PLATFORMS 1,100 million units 880 660 440 220 1976 1978 1980 1982 1986 CD CASSETTE LP/EP 8-TRACK DOWNLOAD ALBUM Historical Sales: SINGLE TRACKS SHIPPED ACROSS PLATFORMS 1,200 million units 960 720 480 240 1991 1992 1993 1997 CD SINGLE CASSETTE SINGLE VINYL SINGLE DOWNLOAD SINGLE Online Revenue AS A PORTION OF TOTAL REVENUE ONLINE MUSIC SALES SURPASSED PHYSICAL MUSIC SALES FOR THE FIRST TIME IN 2011 Percent of record company revenues from digital music 71% 53% 52% Revenues grew 8% to $5.2 BILLION in 2011 32% Subscription services revenue rose from $212.4 MILLION to $241 MILLION--13.5% increase in China in South in the USA globally Korea There are now over 500 LEGITIMATE ONLINE MUSIC SERVICES IN 78 COUNTRIES = 5 LEGITIMATE ONLINE MUSIC SERVICES 13.4 MILLION digital music subscribers globally, 65% INCREASE from 2010 3.6 BILLION downloads in 2011, 17% INCREASE Digital albums are 31% of US album sales by volume from 2010 Digital Album VOĽUME SALES GROWTH, 2011 Yet 28% OF INTERNET USERS USA UK France worldwide use unauthorized Global download/streaming services each month +19% +27% +23% +23% Rise of FILE-SHARING SITES Monthly page views on some of the most popular sites used frequently for illegal file-sharing and downloads: 1 billion PEER-TO-PEER SITES allow sharing of files among computer 800 million networks through the Internet; these include Pirate Bay, Torrentz, BTJunkie and others. CYBERBLOCKER SITES store files, which can be downloaded 600 by many users; these include Megaupload, 4shared, RapidShare and others. 400 200 2006 2007 2008 2009 2010 2011 How do you GET YOUR MUSIC ? SOURCES: http://abonews.go.com/Business/top-10-dying-industries-us-include-newspapers-telecom/story?id3D13292328#.UCWT251IS0W http://www.digitalmusicnews.com/stories/021711disruption http://money.cnn.com/2012/01/05/technology/digital_music_sales/index.htm http://www.ifpi.org/content/library/DMR2012.pdf http://venturebeat.com/2012/03/27/riaa-subscriptions-revenue-increase/ http://www.nytimes.com/2012/02/05/opinion/sunday/perpetual-war-digital-pirates-and-creators.html?_r=1 1973 1974 1975 1977 1979 1981 1983 1984 1985 1987 1988 1989 1990 1991 1992 1993 1994 1997 1998 1995 1973 1996 1999 2000 1974 1975 2001 2002 2003 1976 1977 1978 2004 2005 2006 2007 2008 1979 1980 1981 1982 1983 2009 2010 1984 1985 1986 1987 1988 1989 1990 1994 1998 1995 1996 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010