Music Ups and Downs: Online and Mobile vs. Physical; Spenders vs. Spend

July 3, 2008

This article is included in these additional categories:

Media & Entertainment | Radio | Retail & E-Commerce

Weighed down by plummeting CD sales, the global recording industry is struggling to find its footing in a rapidly changing marketplace, with spending on physical music down as online and mobile formats gain momentum, according to eMarketer.

Worldwide spending on recorded music will decline from $31.8 billion in 2006 to $26.2 billion in 2011, it forecast:


Similarly, US spending on recorded music is expected to drop from $11.5 billion to $9.3 billion during the same period.

Ups and Downs

Previous forecasts were higher, but faster-than-expected declines in sales of physical recordings in key markets resulted in a downward revision as digital growth has not fully compensated for the declines, according to a current eMarketer report, “Recorded Music: Digital Falls Short.”

Per-capita music spending in the US has been on a downward trend, offsetting the increases in the number of music buyers, according to eMarketer’s calculations (based on Bridge Ratings and US Census Bureau data):


Online and Mobile Growing

The online and mobile segments, which in 2007 accounted for 15% of worldwide recorded music spending, will grab nearly 40% of the total music spend in 2009, according to eMarketer:


Moreover, in 2011, the online and mobile music spending will make up more than half of the worldwide total, it forecast.

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