Music Sales Show Dramatic Fall

New figures show that the music industry not escaped the economic downturn with global music sales down by some 8%.

With banks close to extinction and the news headlines filled with bleak economic forecasts, it is no surprise to hear that the music industry is suffering. Struggling to adapt to changing markets, the industry has watched an 8% fall in sales worldwide.

New figures by the IFPI reveal the stark nature of the problem. Sales of music in a CD format decreased by 15% globally, while in the United States the figure stood at 31%.

Introduced in the 80s, many have sounded the death-knell for the CD with the introduction of digital downloads. However even these were not enough to make up the shortfall, despite a massive 24% growth.

Obviously, factors such as illegal downloads should be taken into consideration here. But the figures demonstrate just how tough things are for the music industry, with many labels struggling to stay afloat.

Just last year, music distribution company Pinnacle went bust plunging the independent music sector into crisis while similar events have occurred around the world.

One bright spot for the industry was the growth in earnings from areas such as TV and radio. Royalties from these sources rose some 16% last year to £548 million, proving how dependent the industry is on these areas.

In Britain, the PRS has had a lengthy row with Youtube over royalty payments, which threatens to re-write the way these are paid. Europe secured the majority of monies from TV and radio, with European agencies taking in some £394 million.

In response to changing circumstances British artists have formed the Featured Artists Coalition with notable members including Radiohead, Billy Bragg and many more.