Digital distribution will account for $300m worth of music bought over the web by 2004, according to a report published yesterday. Online sales of music will grow by over 20 times from the 1998 level of $169.9m to $3.9bn by 2004, but just 8% will be directly downloaded, according to Music Rights In Digital Media 1999, published by UK market research Market Tracking International Ltd.
This fairly small percentage will increase, says MTI, to between 15% and 20% by 2010. Unsurprisingly, the US will be the first to embrace digital downloads. With 56% of the internet population, the US will account for 70% of the total music downloads. The UK will be the next largest user, making up 5% of the international market.
