BPI: Digital music sales pass magic £1 billion boundary

Since the launch of the first paid music service on the British web, in 2004, more than £1 billion was spent on the sales of digitally distributed music. About a third of this figure (£316,5 million) was spent in 2010. This emerges from the BPI’s annual report.

The most sold digital album is Adele’s 21. The virtual single that crossed the digital counter was I gotto feeling, by the Balck Eyed Peas.

The positive stories about digital sales, however, are not able to correct the decline in music on physical carriers. The total figure showed a 7,9% decrease in 2010.

The market for music on physical carriers answers to different laws than virtual music: there are very few people that still buy physical singles. Between 2004 and 2010, the sales of singles dropped steeply from £66,6 to £6,9, a decline of almost 90%. Online, by contrast, people show their appreciation for being able to buy individual tracks. Almost as much money was spent on tracks (£132) as on virtual albums (£146).

Prices, in the meantime, have been declining steadily. Nowadays, an album goes for about 65% of its 2004 price.

Source: BPI