How digital has changed the music industry

Digital downloading has changed the music market. Digital music sales revenues in 2007 were 40% higher than 2006, at $2.9 billion, and online also enables artists to communicate directly with their fans, providing a very effective marketing channel.

How digital has changed the music industry

Tim Gibbon and Rachel Hawkes

The internet has caused much change in a vast array of business practices and overall industries. Perhaps the industry that has experienced the biggest change has been the music market. Commercial music downloading has only been available for the last five years, so to all extents and purposes it is still very much a baby finding its feet.

According to the IFPI, digital music (which includes both online and mobile sales) revenues in 2007 were an estimated US$2.9 billion, an increase of around 40% from $2.1...

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