Looking at the numbers over the past few years, two things stand out. One is the overall decline in sales of physical media (e.g., CDs, CD singles, vinyl, music videos, and DVDs), from 860 million units in 2002 to 749 million last year?almost 13 percent. More importantly, legal downloads have gone from zero to 554 million in two years. Perhaps most telling is that despite a decline of 151 million units of physical media sold since 2002, revenues have only dropped by US$340 million?about 2.7 percent.
This should be good news for the record companies. Instead, they're using the figures to paint a gloomy picture of declining music sales, continuing to blame evil college students and others sharing music over campus networks as well as file sharers from all walks of life for their problems.
CD sales may be slipping, but paid downloads are growing at a much faster rate than CD sales are declining. [...]
The labels should also forget about CD sales ever recovering, and should stop using that as a metric for measuring piracy or other industry wores.
