Digital To Overtake Physical In 2010

I've been preaching this concept for the last 10 years, give or take a few years. The digital age is here, and there is nothing to slow down this juggernaut! For far too long distributors, labels, and artists have been behind the consumer. Consumers have been right at the edge of watching this technology grow, while others waited in the wings ignoring it, hoping that it would pass them by, and they could pick up "business as usual".

Yes, it is a fact, that digital downloading and technology pirates have plundered the coffers of the industry, but I can only blame the media providers who didn't see an advantage of keeping up with the changing tide in this business. It is time that these companies caught up with the rest of us, and begin launching new digital formats or they will be left in the dust and wake of the revolution that already has begun. Some have already tried to be on the cutting edge, but they need to do more, or the industry as we know it, will die a slow and painful death.

Music sales are predicted to total $6.5 billion in 2010, 52.2 percent of which will be digital sales, according to a report by research firm eMarketer. Digital sales are expected to increase at an annual growth rate of 11 percent over the next four years and are predicted to total $4.56 billion by 2013, up from an estimated $3 billion in 2009.

The proof is evident as Ke$ha's debut album Animal debuted at No. 1 on the Billboard 200 with sales of 152,000 units, according to Nielsen SoundScan. A total of 76 percent of the album's first-week sales came via digital retailers, the largest weekly digital percentage for a No. 1 album in the chart's history. (1/14)