Video is emerging as the key driver for global music sales, an analyst claims.
Informa Telecoms and Media analyst Simon Dyson has observed that the value of global music sales fell by 1 per cent in 2004 to $29.4 billion. Meanwhile. music video sales rose by an estimated 26.3 per cent to $2.7 billion.
The firm expects music audio sales to remain "almost unchanged" this year, but music video sales, driven entirely by music DVD videos will increase by 17.6 per cent.
In the years to 2010 the music video sector will continue to rise, at an average annual rate of 9.4 per cent to reach $4.9 billion. The growth of audio revenues is expected to be more modest and will largely be driven by digital sales. The overall value of music sales in 2010 is forecast at $38.7 billion.
Dyson said: "The continued rise in home DVD hardware penetration has created for the music industry a valuable new income stream. Although the digital sector has grabbed all the headlines, overall growth in the next few years is likely to come from music video."