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 BPI release third-quarter market report : 10:10:2005 > High street gloom fails to dent album sales > Digital boosts single track sales by 50% > New digital figures underline massive growth potential High street gloom fails to dent music sales UK record industry trade association the BPI has cited the continued success of new British artists and the boom in digital as the reason behind growth in what was widely predicted to be a disappointing quarter for the recorded music business. Artist album sales increased by 8.9% over the third quarter thanks to continued strong sales from British acts, with 7 UK acts among the Top-10 best-sellers. Despite grim reports from the high street throughout the third quarter, with retailers citing the London bombings in July and declining consumer confidence responsible for tough trading conditions, a decline had been expected but quarterly album sales managed to improve year on year. James Blunt's debut album Back To Bedlam occupies the top spot, having shipped more than one million copies in the quarter to go five-times platinum. The album's third single You're Beautiful tops the quarter's singles and download chart and has become the best-selling download of all time. Continued strong sales by both Coldplay and Gorillaz, and Mercury Nominated debuts from Kaiser Chiefs, KT Tunstall and The Magic Numbers all helped to boost artist album sales by almost 9%. Despite its release later in the quarter, David Gray's new album "Life In Slow Motion" made the quarter's top ten as well as registering an impressive Top-20 debut on the US Billboard Chart. The 61st edition of the ever-popular Now! Series (which came out as the quarter's second-best selling album) and a top-selling Gatecrasher compilation, both featured in the quarter's best-sellers list, but this was not enough to compensate for an overall decline in compilation sales. The compilations' decline was offset by strong artist album sales, which saw the overall albums market record 1.4% growth. BPI Chairman Peter Jamieson said: "Our members invest millions of pounds each year in new UK artists, and time and again music fans choose to buy British." "It's been a tough summer on the high street, but these figures demonstrate the enduring appeal of great British music." Top 10 artist albums, July-September 2005* 1, Back To Bedlam, James Blunt, (Atlantic Records UK) 2, X&Y, Coldplay, (Parlophone) 3, Employment, Kaiser Chiefs, (B Unique/Polydor) 4, Forever Faithless - The Greatest Hits, Faithless, (BMG) 5, Demon Days, Gorillaz, (Parlophone) 6, Eye To The Telescope, Kt Tunstall, (Virgin) 7, Life In Slow Motion, David Gray, (Atlantic Records UK) 8, The War Of The Worlds, Jeff Wayne, (Sony Music) 9, Breakaway, Kelly Clarkson, (BMG) 10, Late Registration, Kanye West, (Mercury) *Excludes compilations
Digital boosts single track sales by 50% The boom in digital music continues and single track download sales in the UK are now fast approaching the 25 million mark since the format launched with 5.7 million sales in 2004 and 16.9 million sales already in 2005. Weekly sales regularly top 500,000, and downloads regularly account for more than 60% of the entire single track sales market, compared to just 3.6% at the beginning of 2004. Digital's share of the Top 75 singles chart is also growing. When the combined chart launched in mid-April its share was 15.9% and by the end of August it was 25.5% Although physical single sales declined by 21.8% in the third quarter, single track downloads increased by 288% to increase the overall market by 49%. And with 800,000 sales the impressive recovery of 7" vinyl continued to record 80% growth for the format on 2004. Significantly, these figures do not include subscription sales or paid-for streams. The subscription model pioneered by Napster has been also adopted in new digital offerings from leading traditional physical retailers such as HMV and Virgin. BPI Chairman Peter Jamieson said: "This year digital made the transition from mere potential to becoming a significant revenue stream. But this is just the beginning." "While the record label model of investing in the best new music talent remains the same, the emergence of innovative new digital services means that the record companies can offer consumers even greater choice as to how to access their music." Top 10 singles, July-September 2005* 1, You're Beautiful, James Blunt (Atlantic Records UK) 2, Don't Cha, Pussycat Dolls Ft Busta Rhymes (Polydor) 3, Bad Day, Daniel Powter (Warner Bros) 4, We Belong Together, Mariah Carey (Mercury) 5, Ghetto Gospel, 2pac Ft Elton John (Polydor) 6, Since U Been Gone, Kelly Clarkson (BMG) 7, The Importance Of Being Idle, Oasis (Big Brother) 8, Pon De Replay, Rihanna (Mercury) 9, Roc Ya Body (Mic Check 1 2), MVP (EMI Records) 10, Dare, Gorillaz (Parlophone) *Combined physical and digital sales
BPI figures underline massive growth potential in digital > Expanding consumer choice to drive market further > Females buying more, but males still dominate as rock leads sales > Small numbers of heavy buyers dominate early download purchasing New figures also released today by record companies' trade association the BPI show that the market for digital music is beginning to widen, as increasing numbers of consumers begin to download legally. Figures from The Official UK Charts Company suggest that music fans are already taking advantage of increasing consumer choice. With more than 1.5 million different songs now available legally online, 81% of all download sales are non-chart titles, and around 80,000 different tracks are being sold each week, compared to around 55,000 last August. Females buying more, but males still dominate as rock leads sales BPI figures released in early 2005 revealed that males accounted for 96% of spend on digital music, but females' spend on digital music has increased through the year and females now account for 31% of all spend. But males under 45 are still the biggest digital music buyers, buying 56.5% of all downloads, and rock is also the biggest selling genre, representing 42.4% of all download purchases. While the majority of purchases are made by the 25-44 age group, legal downloads are becoming increasing popular with males under 20 - this group make 13.3% of all purchases. This figure is all the more surprising since many digital services are unavailable to under 18s as credit cards are often required. "This time last year, the market was driven by technologically-savvy early adopters, usually older male buyers," says Jamieson, "but young consumers and female music buyers are clearly beginning to take advantage of these new services." Small numbers of heavy buyers dominate early download purchasing While the physical business is hugely reliant upon light buyers - with the majority of sales gifts or occasional purchases, digital buyers tend to be heavy buyers. The gift market for music is huge with around 40% of the industry's physical sales occurring in the final quarter for Christmas. This year we have seen large sales uplifts around Mothers' Day and Fathers' Day, The physical market is dependent on those making occasional purchases, and with around 4 units a year for the average singles buyer; around 69% of buyers defined as "light" buyers. But research company TNS say the digital market is currently dominated by heavy buyers, with those making 20 purchases or more a year responsible for around 20% of all downloads sold. Given that less than 3% of the UK population have downloaded music legally this year, and less than 14% of UK homes currently have broadband, the market is currently driven by a small number of consumers making lots of purchases. BPI Chairman Peter Jamieson said: "Digital sales are already having a significant impact on the sector, with the singles market showing strong signs of recovery. That this turnaround has until now been driven by a small number of early-adopters makes the progress that much more impressive. "In time, we expect increasing numbers of occasional music buyers to use these new legal services - as consumer choice increases the potential for growth in this sector is massive." < ENDS > Editors Notes All sales figures refer to over the counter sales, as recorded by The Official UK Charts Company, unless otherwise stated. Percentage change in quarterly figures always refers to year-on-year changes rather than the previous quarter. For example, a 49% rise in overall single track sales means that retail sales over July-September 2005 were 49% larger than over July-September 2004. All demographic download data is from the BPI's latest Music Buyers Report, which is available as part of the BPI's Market Information Series. BPI market information is free to members and also available to subscribers for an annual fee of £250. Visit www.bpi.co.uk/stats for further information or call Rob Crutchley on 020 7803 1300 to subscribe. Additional Digital Statistics > IFPI figures released on October 4 show that first half digital revenues trebled in the first half of 2004 and now occupy 6% of revenue from music sales worldwide. > In the UK, TNS estimate that 2.6% of 12-74 population have downloaded music legally this year. > The average price paid for a UK download is 88p, compared to £3.05 on a physical single (TNS) > While downloads are clearly having an impact on the chart, approximately 81% of sales are on non-chart product i.e. album tracks or back catalogue (OCC estimates) Q3 2005 Download-Only Top Ten 1. You're Beautiful, James Blunt 2. Bad Day, Daniel Powter 3. Don't Cha, Pussycat Dolls Ft Busta Rhymes 4. Dare, Gorillaz 5. Ghetto Gospel, 2pac Ft Elton John 6. I Predict A Riot, Kaiser Chiefs 7. Since U Been Gone, Kelly Clarkson 8. Don't Lie, Black Eyed Peas 9. The Importance Of Being Idle, Oasis 10. Crazy Chick, Charlotte Church Downloaders - Demographic Breakdown* > Most legal downloaders are younger; under-35s account for 58% of buyers. Over 55s account for a quarter of physical sales but only 4% of digital. But in terms of spend the 45-54 age group are the heaviest with 27% of spend. (TNS) > While males represented 96% of download spend at the end of 2004, the market is widening. Females share of download spend has now increased to 31%. Females are the biggest single buyers, with 55% of singles bought. Men are the biggest album buyers; 52% of albums are bought by men. (TNS) > Rock is leading the way with 42.4% of all sales; possibly reflective of the male bias in purchasing.
* 52 wks to w/e 26 June 05 Downloaders - What they buy
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