LONDON — The worldwide music market may have declined 10% in value to $33 billion in 2001, according to analyst estimates, the worst drop in record biz history.
Official stats are due from global industry org IFPI April 16, but the scale of the downturn has alarmed observers.
Much of the blame is laid on pirated music being downloaded from the Internet, especially in the U.S., as well as an upswing in consumer CD burning. The IFPI reckons that for every CD that is currently purchased, another is burned.
Meanwhile, organized piracy is still on the up, particularly in Asia and Latin America.
Record companies, however, are hoping that 2001 will prove the bottom of the downward slide.
In the year – which was in addition heavily impacted by the fallout from 9/11 – illegal websites such as Napster were shuttered and new anti-piracy initiatives undertaken. There are also fresh efforts to make music more attractive as a product in the digital age.