Thursday, January 01, 2009

Digital Music Downloads Set New Bar in '08 -- So, What's the Problem?

Happy New Year everyone! Most folks I know are happy to leave 2008 behind, but have a new or renewed sense of hope for 2009. And, many have a new appreciation of simplicity.

On the music industry front, 2008 marked yet another disastrous year for the major labels. While digital music downloads grew a whopping 27% year over year (with over 1 billion songs were served), unbelievably -- actually, perhaps believably at this point -- CD sales plummeted another 20%. Suffice it to say, the rapid rise of digital music sales (at $.99 a pop) don't even come close to making up the difference in CD lost revenues.

Universal Music Group, once again, finished first in terms of album market share with 32%. Sony BMG finished second with 25% and Warner Music third with 21%. And, EMI finished last of the majors with 9%.