Major music label announces digital revenue exceeds CD sales
The label of music stars like Ray Charles and Led Zeppelin have announced that revenue from digital music downloads has surpassed that of CD sales. It currently stands at 51% of turnover, according to the New York Times. Atlantic parent label Warner Music Group says about 27% of its American groups revenue was generated through digital channels in Q4 of this year. The NY Times notes that music sales are in decline, down to $10.1 billion this year from $14.6 billion in 1999, and is expected to fall to $9.2 billion in 2013. Studios are changing their business models to counter this decline and have expanded into ticket sales for concerts and band merchandise. Atlantic Records’ digital revenue was generated through ring tones, ringbacks, satellite radio, iTunes sales and subscription services.