Digital Music Spending, Complexity Up

• Posted: Friday, June 27, 2008
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• Author: pradhana
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• Filed under: Digital Content

Artists look for new revenues—think ads—as total recording sales dip.

Even as legitimate music downloading is increasing, the music industry is still searching for business models to reverse its declining revenues. This is making things more complex both for consumers, who need to stay current on which music formats and players work together, and for musicians, who have to consider far more revenue streams than just CD sales.

It was not supposed to be like this. The industry had staked its future on the hope that the legitimate download business would make up for falling CD sales. From the standpoint of audience engagement, this scenario has played out favorably.

More people than ever before are buying music, and the balance is shifting decidedly toward downloads and away from physical formats.

Despite the audience in the downloading sector, the revenue math has not added up for the music industry. Per-capita music spending in the US is trending downward, offsetting the increases in the number of music buyers, according to eMarketer calculations based on data from Bridge Ratings and the US Census Bureau.

Read more - eMarketer

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