A new survey from the Gartner group shows digital music revenues forecast to grow less than 5% per year.  This is close to flatlined if you factor in inflation.  Not good news for most of the world.

■ Online music revenue from end users will grow more than 31% by the end of the forecast period: from $5.9 billion in 2010 to $7.7 billion in 2015. By comparison, consumer spending on physical music (CDs and LPs) is expected to slide from around $15 billion in 2010 to around $10 billion in 2015.

■ Online music subscription services, such as Spotify, will be the main growth sector in this market, showing fivefold growth from 2010 to 2015. A la carte sales will drive the bulk of overall revenue.

■ The highest growth rates will be in regions such as Latin America and the Middle East and Africa, which have not historically been strong in paying for tracks or albums from online services or stores (although perhaps stronger in paid-for ringtones from their service providers).

digital music sales chart

Read more from Gartner here.

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Comments

5 replies
  1. armenia4ever says:

    I’d like to thank you for some of the astounding and thoughtful analysis that is on this blog. It’s a mini-gold mine that I have now only just discovered.

  2. Hertfordshire says:

    consumer spending on physical music (CDs and LPs) is expected to slide from around $15 billion in 2010 to around $10 billion in 2015.That is because of easy way now music avaibility in web and tv and mobile recently

  3. themindbogls says:

    Hi, I’m spending as much as I can every month on physical music! Mainly because I barely understand the other stuff. But I did wonder looking at the pie graph and the huge market for personalization if there is maybe a market for a Facebook equivalent of the ringtone, ie a ‘pagetone’, that you can buy a favorite piece of music from Spotify or Jango or somewhere and program it to play automatically with each page view on your social network? My 18-year-old says he doesn’t think it’s been done.
    Incidentally it’s incredibly clever of you to even know that I have a WordPress blog! Only my friends know, and I don’t have too many of those….
    Paul

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