Whenever you hear that people are still paying for their music, it must come to a shock to some of you, but for an industry that’s become jaded and cynical with its public, you can’t ignore the fact that MP3’s have redefined how people get and purchase their music.
With its recent Digital Music Report 2006, IFPI (INTERNATIONAL FEDERATION OF THE PHONOGRAPHIC INDUSTRY) reports that sales of music via the Internet and mobile phones generated sales of $1.1 billion in 2005, up from $380 million a year ago.
They also discovered that 420 million single tracks were downloaded legally through online stores and that digital music now accounts for about 6% of record companies’ revenues.
Not surprisingly though, the sales of ringtones has brought in an excess of $400 million as that area has been one of the most marketable arenas for record labels to cash in for a quick buck that now looks to be a vital source for cash flow.