As Internet users looked for alternative listening methods, online digital music sales in 2010 dramatically slowed but still offered higher single-track revenue than last year. The Nielsen SoundScan study analyzes the popular music industry that struggles to deal with slowing music CD sales.
By the end of November, individual digital song downloads (and complete album sales) have increased just 5 percent. A total of 95 million music songs were sold, which is significantly lower than the 277 million sold throughout all of 2009.
Digital album sales, however, have increased 12 percent year-over-year in 2010, showing that the music industry has learned to better cater to music fans. Pricing continues to remain a battle among Apple iTunes and the numerous other companies offering music and album downloads, streaming radio, and music on-demand services.
In addition to lower online music downloads, music CD sales -- the record industry's former cash cow -- still struggle as the music industry has been forced to focus on digital music.
It's not surprising to hear the music industry has struggled as of late, because company executives were behind from the beginning. Before the record industry was ready to sell music in a format besides CD, Napster and peer-to-peer popped up and forced the music industry to revolutionize. Since then, record labels have embraced new technologies in an effort to broaden revenue streams, but they're still learning about the newer market.
I started using Rhapsody on a more frequent basis as I looked for new music while sitting at the PC or working around the house. I still rarely use P2P or legally download music, but always have an eye out on new music services popping up.
As we all figure out what music service works best for us, the music industry will continue to test new business models. A former music industry executive believes $1 music albums could help fight piracy, while some musicians have started offering music for free.
