Digital Music Sales Double in 2006

Digital music sales worldwide are still on the increase, but it's still not enough to offset the declining sales of CDs. Nevertheless, the category is expected to make up a quarter of sales by 2010.

Revenues from digital music in 2006 reached $2 billion, which accounted for 10 percent of all sales. Overall, music sales fell about three percent. The International Federation of the Phonographic Industry (IFPI) had said that it hoped the medium would make up for lost sales.

However, that is yet to be the case. Chairman John Kennedy expressed some confidence that a balance could be reached this year, or at least close to it.

"The chief winners in the rise of digital music are consumers. They have effectively been given access to 24-hour music stores with unlimited shelf space," he said. "They can consume music in new ways and formats - an iTunes download, a video on YouTube, a ringtone or a subscription library."

Efforts against P2P uploaders seem to be having a positive effect in containing piracy, however the IFPI said it is not enough and would be stepping up efforts to combat the problem by going after ISPs and will "take whatever legal steps are necessary."

Mobile music is accounting for about half of all digital sales, although the split varies from country to country. In Japan for example, mobile music accounts for 90 percent of all revenues, but in other countries it is much less.