Page last updated at 13:36 GMT, Tuesday, 3 July 2007 14:36 UK

Global CD sales slump in 2006

Tom Smith from Editors
Editors' new album is currently number one in the UK chart

Global CD sales have slumped "more in 2006 than had been expected", according to an industry report.

The International Federation of the Phonographic Industry (IFPI) said sales last year dropped to 1.7bn, compared with 1.9bn in 2005.

Although digital music sales doubled last year, they failed to compensate for the overall fall in music sales.

IFPI chairman John Kennedy said he had hoped the CD sales decline would have been offset by digital sale increases.

Physical sales continue to drop at a faster pace than we hoped for
John Kennedy
IFPI chairman

"While digital sales have grown as expected, physical sales have fallen by more than expected," said Mr Kennedy.

"Unfortunately this trend has continued in 2007. Physical sales continue to drop at a faster pace than we hoped for, particularly in the US and now also in the UK."

However, Mr Kennedy predicts that digital sales could grow by a further 50% this year.

Illegal downloads

Illegal downloads are not included in the figures, but it is thought that there are 20 illegal downloads for every one legal download worldwide.

Mr Kennedy insisted "music is more popular than ever", but claims the recording industry is suffering because of piracy issues including CD copying.

"But solutions to this problem are within reach," he said.

Mr Kennedy is calling on the government and internet service providers to curb the spread of piracy, and said the industry is investing "heavily" in consumer education and the enforcement of its rights.

Last month, the Entertainment Retailers Association claimed that UK music fans continue to be the biggest buyers of CDs in the world.

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