Ben Shepherd writes: ARIA has released sales data for 2008 and the results are interesting.
– digital album sales revenue up 99%
– physical album revenue down 12%
– digital singles sales revenue up 32%
– music video/dvd down 16/2%
– overall sales revenue (singles/albums/music video dvd) down 7.9%
– ringtones down 15%
Physical album sales declined by $39m, whilst digital album sales rose by only $6.8m. Physical singles are now only worth $3.5m so you would have to assume this format will be dead in the next 18 months.
The real issue is the fact recorded music sales revenue is down year on year. Sure, digital is up (off low bases relatively) but it’s still failing to plug the hole.
What’s the reason – well … it appears the revenue on digital sales are nowhere near as good on physical sales. Case in point – digital album sales increased by 261% but revenue only by 99%
The music biz is a mugs game at the best of times … but right now the best of times are a long way gone.
Full data – http://www.aria.com.au/documents/YE12-08.pdf