MUMBAI: Digital sales of music will go up to 40 per cent of all music purchased worldwide by 2012, according to US based research firm In Stat.
Digital sales went up to 10 per cent of the total in 2007, up from six per cent in 2006.
Other findings of the research agency say that revenue from worldwide full track mobile downloads will reach approximately $4.2 billion by 2012. Sales for online digital music reached $3.05 billion in 2007, up 48 per cent from 2006.. The majority of respondents who accessed online video (72.3 per cent) in 2007 did not pay for the video they saw from the Internet, the research says. The high-tech market research firm says the global expansion of broadband continued demand for single-track downloads, and expanding music catalogues are the factors contributing to this growth. Another key driver is the potential for market growth in full-track downloads to mobile handsets in markets other than Japan, which currently is the primary market for this type of digital music format.
Related Post
In-Stat analyst Stephanie Ethier says, Digital piracy continues to represent the primary challenge to online music service providers. Other obstacles still include the lack of interoperability between services and devices due to differing digital rights management (DRM) technologies, and weak consumer demand for subscription-based services. Another potential market inhibitor is the fact that content owners, cellular service providers and handset manufacturers are increasing the amount of marketing and promotion for mobile music.
