Music industry saved by online sales

Media researchers at Screen Digest have looked into their crystal balls and predicted that the explosion in online music sales would continue and will halt the decline in overall sales of recorded music in Europe, but not until 2010.

The report said that European spending on online music will rise to more than 1.1 billion euros from a piddling 121 million euros last year.

However the increase in online sales is not enough to save declining music sales in the short term. The overall European music market has lost 22 percent of its value since 2001.

The report blames piracy and the fact that retailers have shifted to DVDs, books and mobile phones at the expense of CDs.

Others blame Simon Cowell.

More here.