Legal downloads up, but piracy still rules

Strong growth in digital music sales last year led by Lady Gaga failed to stop the continuing slump in the international recorded music industry, and pirates remain a serious problem, according to an industry body.

Downloads of singles increased by 10 per cent to 1.5 billion units last year, with Lady Gaga's Poker Face leading the field with 9.8 million units, the International Federation of the Phonographic Industry said.

Digital album sales were up by 20 per cent, and combined digital revenues rose to $4.2 billion.

However, total revenue including CDs fell 12 per cent in the first half of last year, continuing a decline which has depressed sales by 30 per cent since 2004, the IFPI's annual digital music report said.

The federation blamed piracy for much of the slump, estimating that illegal downloads now accounted for about 95 per cent of all music downloaded despite the number of licensed music services increasing from 50 in 2003 to 400 last year.

Licensed providers usually charge a fee for music downloads and ensure the artists receive a profit from the sale of a song.

"Mass piracy is continuing to hurt the industry," IFPI chief executive John Kennedy said, warning that it also acted as a disincentive for people to invest in the market.

He called for more countries to adopt graduated response legislation - first warning people who are downloading illegally and then suspending their internet connection if they fail to stop.

Such legislation was passed last year in France, South Korea and Taiwan.

Rob Wells, senior vice-president, digital, for Universal Music, said: "We are doing all we can to cater for an increasing want to consume music legitimately."

He said Orange Monkey, a pay-as-you-go programme, had won 110,000 subscribers since launching six months ago.

- THE INDEPENDENT