US Market Share Diminishing Over Next Five Years
Boston, MA - 23 April 2007 - According to the report, Online Music: Global Market Forecast, the latest research from Strategy Analytics Digital Media Strategies service, the global online music market will grow 62% this year, to reach $2.7 billion, and will ramp to over $6.6 billion in 2011. While the US represented almost three quarters of the global market in 2006, the US share of the market will have been reduced to less than half by 2011.
"The recent move by EMI and Apple to drop DRM from premium tracks will produce a temperate increase in single track download revenues in the short to mediums term," comments Martin Olausson, Director of Strategy Analytics Digital Media Strategies service. "However, long term revenue growth will come from hybrid subscription based services."
"The music labels are finally starting to see digital sales having a positive impact on the bottom line," adds David Mercer, VP and Principal Analyst at Strategy Analytics. "This year will likely be the turning point for the music industry, and a return to overall revenue growth."
| | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | CAGR |
Global Online Music Revenues ($Bn) | $1.7 | $2.7 | $4.0 | $5.2 | $6.1 | $6.6 | 31.3% |
Growth | 63% | 62% | 46% | 29% | 17% | 9% | -32.6% |
Source: Strategy Analytics, 2007