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InStat: Digital Music Sales 40% by 2012
Thursday, April 10th, 2008 at 4:00 PM - by John Martellaro
Digital sales of music will reach 40 percent of all music sold by 2012, according to research by In-Stat. That will be up from just 10 percent in 2007 and 6 percent in 2006.
In-Stat said that the factors contributing to the growth will be the global expansion of broadband, continued demand for single-track downloads, expanding music catalogs and demand from mobile phone users. However, there are challenges to the growth, In-stat said.
"Digital piracy continues to represent the primary challenge to online music service providers,� said Stephanie Ethier, In-Stat analyst. "Other obstacles still include the lack of interoperability between services and devices due to differing digital rights management (DRM) technologies, and weak consumer demand for subscription-based services."
In-Stat expects revenue for full-track mobile downloads to reach US$4.2B by 2012.
Given that projected growth, there is little doubt that the days of the plastic CD in a jewel case bought at the local music outlet are numbered.
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