The music industry has said that while it has started making money from music downloading, more than 90 percent of downloaded music is illegal. The International Federation of the Phonographic Industry, or IFPI, said record companies' revenue from digital music sales rose 40 per cent to US$2.9 billion over the past year. This growth is not covering losses from collapse of international CD sales, the music industry's global trade body said.
CD sales fell 11 percent between 2005 and 2006, and were likely to drop further in 2007. Unfortunately, the music industry has been known to inflate the impact of music piracy to almost comedic proportions to plead its cause.
News source: Fudzilla