The IFPI, or the International Federation of the Phonographic Industry, comprises a membership of 1500 record companies, including independents and majors, in 76 countries.
It found that recorded music sales worldwide fell to $32 billion in 2002. Compared to 2001, sales of CD albums fell globally by 6%, and there were continued declines in sales of singles (down 16%) and cassettes (down 36%). Music videos saw a growth in value of 9%, driven by strong growth in DVD.
Jay Berman, Chairman and CEO of the IFPI said:
"This year's figures hold no surprises. Widespread use of illegal sites, made easier with the growth of broadband access in the major markets, is affecting an industry that is also having to compete with increased sales of other entertainment formats such as DVD films and new video game consoles."
The IFPI noted that the industry has also stepped up its fight against music piracy worldwide, with intensified legal actions against infringing peer-to-peer services and a global education campaign aimed at on-line piracy among corporations, government and colleges and universities.
The US saw a third consecutive year of decline, with album sales down 10% in units, mainly due to falling sales from major album releases affected by sales substitution from internet sources.
France, the world's fourth largest market, defied the global trend with 4% growth in unit sales. Norway, Italy and Portugal also saw more or less flat markets. The German market stands out as worst affected by mass CD burning.
The UK market in 2002 came to the end of its five-year growth run. While the number of albums sold remained stable at 226 million, downward pressure on prices meant the value of album sales fell by 3% and illegal downloading was cited by the IFPI as just one of the factors contributing to the continued decline in single sales.
Music sales across Asia fell by 10%, which the IFPI attributes to continuing economic difficulties and both physical and internet piracy.
