Music DVD Continues to Sing a Winning Tune20 Jan, 2005 By: Jessica Wolf
Music DVD continues to be the growth engine for the music business. The format will enjoy continued retail sales growth in 2005 and beyond while the CD market will flatten out, according to a new report from research company Informa.
The Global Music Forecast report predicts sales of music DVD will increase 17.6 percent this year. Music DVD sales rose 26.3 percent to $2.7 billion in 2004, according to the report.
And, extending the business out to 2010, the music video sector will continue to post steady gains for the music industry — about 9.4 percent annually to hit $4.9 billion.Meanwhile, audio sales fell in 2004 by 2.9 percent to $29.4 billion and the Global Music Forecast predicts that number will stay static for 2005.
Sales of CDs will continue to contribute less over the next five years, with Internet download sales taking a bigger piece of the pie. The report predicts the overall value of music sales in 2010 will be $38.7 billion worldwide.
Sales of digital download tracks hit a U.S. record of 5.04 million transactions for the last week of 2004, according to Nielsen SoundScan.