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Legal music is getting smaller

Posted in February 23rd, 2011
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The International Federation of the Phonographic Industry (IFPI) released a report on music sales for 2010. Despite the increase in digital sales of music content by 7% (from 4,3 to 4,6 billion dollars), total sales of record companies were down 6% (from 17 to 16 MLR. Dollars) due to ongoing theft and illegal distribution Music on the Internet.

Decline in revenue record companies led to a reduction of investment in the proposed expansion of the musical range. Compared with 2003, the number of new artists among the 50 best-selling albums fell by 75%, and decreased income musicians, rescued from the concerts. The main reason for falling sales is the high level of proliferation of pirated music content on the Internet. World share of pirated downloads, according to some estimates, up to 95%.

As for Russian music market, the IFPI is a growth of legal services, sales of music (from 6 to 11 last year), noting their small size and limitations of the proposed range. Substitution of physical music sales in Russia, digital practically implemented – 85% of digital sales of mobile content and the users have become boring, so the digital sales in Russia fell behind physically.

The problem of the Russian market of digital music as well is stealing content. Members have unlimited access to multimedeynym resources through torrents, struggle with which Russia is almost non-existent. Internet sites is not economically advantageous to monitor and delete pirated content, which leads to large losses record companies.

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