Global sales of digital music tripled to $1.1 billion in 2005 and the popularity of recordings on iPods and mobile phones will result in digital music generating 25% of worldwide music revenues by 2010, a music industry trade group said Thursday.

According to the International Federation of the Phonographic Industry's (IFPI) Digital Music Report 2006, consumers last year downloaded 420 million tracks legally, comprising 6% of global revenues. Record companies doubled the number of tracks available to 2 million as subscription services boasted 2.8 million subscribers in 2005 compared with 1.5 million the year before.

"The challenges we now face are far too big for complacency. In particular, we need more cooperation from service providers and music distributors to help protect intellectual property and contain piracy," Kennedy said. "It is not enough that they share in the success of the digital music business, they need to take on their share of the responsibilities as well."

Full Article

---