A number of sites (including the New York Times) are covering a release by music industry trade group, the IFPI, stating that worldwide music sales were up last year for the first time since 1999--the year that Napster was introduced.
It wasn't much of an increase--0.3%--but when you're talking about a worldwide market worth $1.65 billion, every little tick is important. And given that the industry has been taking lumps for well over a decade, this is cause for celebration. I wonder how many people in the industry even remember what it was like to have a good year.
So what's changed? The thirst for digital, really. With more people purchasing digital downloads each month and with more people signing up for streaming music services, it looks like music sold/rented in 0's and 1's is finally living up to its financial promise.
To put it another way, the rise of digital music sales is going up fast enough to offset the decline in sales of CDs. According to this report, digital music accounted for 34% of all sales last year with a year-over-year growth rate of 9%.
The industry isn't out of the woods yet. But you can bet that everyone is breathing a little easier. And let's remember that in 1999, the music industry was worth $38 billion. There's a long way to go before everyone gets back to the days of 300 baud modems and GeoCities.