IFPI: Music piracy is 95% of all digital music

A new study conducted by the International Federation of the Phonographic Industry (IFPI) estimates 40 billion songs were "illegally file-shared" in 2008, with the overall music download rate "of around 95 percent."

In its "Digital Music Report 2009," the international trade group also indicates 2008 was the sixth straight year of digital music expansion, with the industry growing another 25 percent — now valued at $3.7 billion.

Digital music downloads have increased to 20 percent of overall music sales, with more record labels deciding to increase marketing into digital music.  In the U.S., Nielsen SoundScan information reports digital music album sales increased 32 percent last year, which raised the total to 66 million albums sold.  The IFPI indicated the U.S. market remains the largest digital music nation in the world, with half of overall sales.

In addition to more digital music, more music vendors are now licensed to sell-DRM-free music files directly to consumers.  For example, Apple recently announced its iTunes music store now offers 8 million DRM-free tracks, with more music files expected to be added in the future.

The IFPI report also gave kudos to a number of organizations and governments attempting to reduce the amount of copyrighted music piracy.

"The U.S. recording industry announced it was working with the Attorney General of New York State and leading ISPs on anti-piracy initiatives," IFPI President and CEO John Kennedy said in the IFPI report.

Furthermore, the Recording Industry Association of America (RIAA) will shift away from suing individual file sharers in favor of putting pressure on the ISPs of people accused of file sharing.