Record companies' revenue from digital music sales rose 40 percent to $2.9 billion over the past year, but the growth is still failing to cover losses from collapse of international CD sales, the International Federation of the Phonographic Industry (IFPI) announced today. The body, which welcomes French President Sarkozy's clampdown on copyright laws, said the increase in legitimate music sales did not come close to offsetting the billions of dollars being lost to music piracy, with illegal downloads outnumbering the number of tracks sold by a factor of 20-to-1. Although digital revenue tripled in 2005 and doubled in 2006, the IFPI says that this year's 40% increase shows that digital music sales are slowing, and furthermore that the sales have failed to make up for the decline in CD revenues. IFPI chief John Kennedy said the plan is "the most significant milestone yet in the task of curbing piracy on the Internet."
News source: AP