RUMOR MILL
Wednesday, April 7, 2004
IFPI: MUSIC SALES DOWN FOR 2003, SURPRISING NO ONE
Worldwide Sales Down 7.6% for Full Year
The International Federation of the Phonographic Industry (IFPI), the RIAA’s international counterpart, released its report on global music sales for 2003 today, saying the worldwide music market slipped 7.6% in 2003, to $32 billion. In unit terms, sales volume was off 6.5% to 2.7 billion units.
That’s a steep drop, but still better than first-half 2003 estimates, which had sales down 11%. Continuing piracy, sluggish economies and competition for the consumer dollar from the video game and DVD sectors were all cited as reasons for the decline.
IFPI Chairman Jay Berman said he expects full-year music sales in 2004 to drop by another 4%.
While the U.S., Britain and Australia—the #1, #3 and #7 music markets, respectively—each showed signs of recovery in the second half, Europe and Japan continued to slump, according to the report.
One area of growth throughout the world, the IFPI says, is the music DVD market, which grew by over 60% in 2003 and now is responsible for nearly 6% percent of recorded music sales.
