Report: Global Music Sales Decline To Run Until 2005

The global recording industry's pattern of downturn will continue until 2005 at the earliest, according to a new study by Informa Media Group. In its report "The Global Music Industry," the London-based research firm predicts that the value of global record sales will drop to less than $28 billion in 2004 from almost $29.2 billion in 2003 before staging a recovery. The study suggests, however, that the upturn will not be a result of growth but of the industry gaining ground in its battle against file-sharing and CD copying.

The report also downplays the effect of legal downloads on the market in the future. Legitimate digital sales are expected to account for just 5.7% of the $32 billion global music sales total in 2008, remaining a niche sector.

"The music industry is in a bad way at the moment, but the continued fall in the value of music sales is certainly not irreversible," says Simon Dyson, author of the report.

For the years up to and including 2008, online music sales in all formats are calculated to improve steadily, but will account for only a projected 12.1% share of the total.