The U.S. music industry is feeling the pinch of online media. With almost every album available on the net to be downloaded free the music piracy has become a serious concern. On the other hand the online sales are soaring.
As per global records, music sales dipped by 7.2% i.e. from $18.3 billion to $17 billion, through 2009. The digital sales however rose by 9.2% and now make over a quarter of all music income. The extra $363 million brought in by digital distribution could not cover up for the loss of $1.74 billion from physical sales in 2009.
In North America digital sales rose up by just 1.1% in 2009. The Apple iTunes Store represents over a quarter of sales, with virtually zero piracy.
In countries like United Kingdom, India, South Korea, Thailand, Mexico and Australia the digital sales out did physical sales. This clearly shows the power and reach of online media. But Japan and United States account for 80% of the global sales loss, in Spain sales were up by 38% when compared to 2001 and in Sweden music sales grew by 12%.
Industry watchers feel that some music buyers must be tempted to spend their money on mobile games, application downloads etc. Music sales face tough competition in the digital world.
It also turns out that buying a single song is much cheaper and makes more sense as people have the freedom to choose what they want to buy. This luxury is not available at physical stores and they are also not open 24*7. The music lovers have found their own space online and are happy with the freedom they are getting.
The leisure of online music shopping and free music downloads is hampering the physical music stores in a big way. The music industry is worried this can cause further damage and losses
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