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RIAA Announces First Half 2006 Music Shipment Numbers ll
October 12, 2006
http://www.riaa.com/news/newsletter/101206.asp
WASHINGTON — The Recording Industry Association of America
(RIAA) today announced its mid-year shipment data for the
first half of 2006.
The overall estimated retail value of the industry, when
shipments of physical products to various outlets are combined
with the estimated value of digital revenue streams, was $4.9
billion during the first half of 2006. That represents a 6.1
percent decline when compared to the first six months of 2005.
On the digital side, revenues from various formats, including
downloads, kiosks and digital videos, grew by 86.6 percent
in the first half of 2006, with digital formats? share of
overall industry value growing to 18 percent in the first
part of 2006 ? up from 9 percent in the first half of 2005.
Specifically, sales of digital singles increased 71.3 percent
in the first half of 2006, with 286.3 million singles in 2006,
compared to 167.1 million digital singles during the same
period in 2005. Full-length digital albums increased 112.0
percent in 2006, with 12.3 million units sold in the first
half of 2006, compared to 5.8 million digital albums in 2005.
The number of subscription service users was 45 percent higher
for the first half of 2006, with a monthly average of 1.9
million subscriptions, compared to an average of 1.3 million
for the first half of 2005.
Shipments of mobile formats (mobile mastertones, ringbacks
and other artist-related content) increased 97.5 percent in
2006. Record companies shipped 144.3 million mobile units
in the first half of 2006, compared to 73.1 million during
the same period in 2005. In fact, mobile formats continued
to demonstrate such growth in 2006 that the RIAA developed
the Gold and Platinum Award recognizing Mobile Mastertones
in June. Partnering with Cellular Telecommunications Industry
Association (CTIA) and Billboard Magazine, the RIAA announced
the inaugural honorees during a ceremony at the Time Warner
Center in New York City.
Overall shipments of physical units (CD, DVD videos, etc.)
to retail and direct and special markets decreased 15.7 percent,
compared to the first half of 2005. The suggested retail value
of physical product units shipped was $4.1 billion, which
is a 15.0 percent decline from 2005.
"The music community is embracing the digital age,?
said Mitch Bainwol, Chairman and CEO of the RIAA. ?While we?re
encouraged by several promising signs, no transition happens
overnight. We have made meaningful strides against the theft
of music online and on the street, labels continue to offer
and experiment with a variety of digital distribution models,
and fans? appetite for music remains strong. The industry
is offering fans an impressive slate of new albums in the
second half of 2006 that should produce positive results."
"Significant challenges remain," added Bainwol.
"Online and hard goods piracy continue to hit the industry
hard and no doubt had an impact on our mid-year results. Competition
for spending on entertainment, especially in a tough economy,
likely played a factor too."
The 2006 mid-year statistics are supplied by PricewaterhouseCoopers,
LLP to the RIAA and are broken down by U.S. music shipments
from record companies to retail outlets and by all U.S. music
shipments from record companies (including retail shipments
and direct and special markets).
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The Recording Industry Association of America is the
trade group that represents the U.S. recording industry. Its
mission is to foster a business and legal climate that supports
and promotes our members' creative and financial vitality.
Its members are the record companies that comprise the most
vibrant national music industry in the world. RIAA™ members
create, manufacture and/or distribute approximately 90% of
all legitimate sound recordings produced and sold in the United
States. In support of this mission, the RIAA works to protect
intellectual property rights worldwide and the First Amendment
rights of artists; conducts consumer, industry and technical
research; and monitors and reviews state and federal laws,
regulations and policies. The RIAA™ also certifies Gold™,
Platinum™, Multi-Platinum?, and Diamond sales awards, as well
as Los Premios De Oro y Platino?, an award celebrating Latin
music sales.
Contacts:
Jonathan Lamy
Jenni Engebretsen
Amanda Hunter
202-775-0101
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