Sound Recording Revenues Now and in the Future

Like hearing news of the 'R' word yesterday that we are now in an official recession wasn't bad news enough. Now analysts from Jupiter Research are predicting that while digital music sales will grow by 23 percent from 18 to 41 percent, overall music sales will drop from today's $10.2 billion to $9.8 billion in 2013. Therefore, while there is significant growth in digital sales, it will not be making up for the decline in CD sales. Another interesting fact is that by 2013, 75 percent of the U.S. population will own mp3 capable mobile phones, however very few will be purchasing songs via their cell phones. Mobile sales will only contribute about $300 million five years from now. For more information visit Billboard.biz.

So is this cause to cut your losses and get out of the industry now? I wouldn't say so because no one can predict the emerging technologies or talent that will have a major effect on sound recording revenues and the industry as a whole. While we are in a recession and music industry revenues are expected to contract, I know that there is a truly grand opportunity in music and there always will be. Music is the best way to connect and communicate with others and it will always be needed but we will have to do more to convince people to buy. Getting out of a recession will also help tremendously, let's see what this new administration can do.