Music Sales continue to decline in 2005
Recent reports have confirmed that more and more people are buying music online legally. This trend has led to record breaking sales of digital music players like the popular Apple iPod and in fact, Apple iTunes has become one of the top 10 retailers of music in the United States overtaking many offline shopping chains selling music.
This has however also resulted in the overall decline of music sales in the country as a report by industry’s leading global body confirmed. This comes despite the fact that the industry won many landmark cases against p2p networks leading to their shutdown. John Kennedy, chairperson and CEO of the International Federation of the Phonographic Industry said in a statement that global music retail revenues fell about 2 percent last year.
They would however be pleased by the recent reports which claimed that the market of legit digital music online has crossed the USD 1 billion mark. Eric Nicoli, chairman of EMI Group PLC however is not impressed as he said in a statement: “Piracy in all its forms has been the major factor in this reversal but not the only factor.â€
Falling sales has led to these music companies demanding from Apple to raise the prices of songs on Apple iTunes to get more returns. However, Steve Jobs has rebutted their demands claiming that raising prices on iTunes would lead to a backlash from the customers who would go back to downloading pirated music from the internet.