This is an interesting statistic:
Sales of digital albums up 126% in the first half of 2006
A total of 270.6 mln physical albums were sold in the first half of 2006 in the US, representing a drop of 12 mln units from 2005 first half total of 282.6 mln, according to Nielsen SoundScan. Digital albums improved by 8.2 mln units, with 14.7 mln units sold versus just 6.4 mln units in the first half of 2005. Digital tracks gained by 122 mln units; 281 mln tracks were sold in the first six months of the year versus 158 mln in the same period 2004. Sales of digital albums soared 126% during the first half of 2006, while digital tracks rose 77%. Physical album sales continued to decline in the US during the first six months of 2006, down 4.2%. Source
So what I gather from this is that, although buying cd's has fallen off, people paying for and dowloading full albums has more than doubled. What's the fuss about? RIAA not getting enough kickbacks now?
From the same source:
Digital music sales generated $790 mln in the first half of 2005
Digital music now makes up 6% of total sales, or about $790 mln, according to International Federation of the Phonographic Industry. Sales of CDs and other physical formats continued a long decline, falling to $13.2 bln from $13.4 bln in the first half of 2004. In the United States physical sales fell 5.3% by value and 5.7% by units. In Japan physical sales were down 9.2% in value and 6.9% in units.
Now, while there's a decline in physical sales, digital sales have more than doubled, but physical sales still generated over $13 billion. And they're suing a 16 year old kid???
/me shakes her head...
I want some of that action....what a racket.