Music Retailed $12 Billion in 2005 But Dropping, Says RIAA

Record labels retailed about $12.27 billion in 2005, compared to $12.34 billion in 2004, said the Recording Industry Association of America.
Digital and physical music sales combined carry a wholesale value equivalent of $7 billion.
The 2005 figures include some categories not collected in 2004 such as mobile phone ringtones, digital subscription, a la carte digital downloads, digital music video and in-store kiosks – reflecting the emergence of new revenue streams for the music industry. But music sales continue to drop, notes the RIAA.
“The theft of music in its various forms continues to exact a heavy price,” said RIAA Chairman/CEO Mitch Bainwol. “New digital radio platforms, while exciting and holding great potential, present new challenges if allowed to morph into download-like services without commensurate compensation.”
Overall album shipments, when including both physical and digital albums, were roughly 795 million in 2005, a 3.9% decline from 2004. The number of physical units, such as CDs, DVD videos and cassettes, shipped to stores decreased by 7.6 percent overall.
Along with other factors like competition from other entertainment products, various forms of piracy – including illegal downloading sites, illicit CD burning and the sales of counterfeit and pirated CDs – continue to undermine the health of the music industry, said RIAA.