Songwriters lose out to downloads

Updated 09.21 Mon Aug 11 2008

Keywords: internet, Songwriters, download, CD sales

Figures have revealed songwriters made 15 per cent less money from CD sales as consumers choose to download music from the internet.

Half-year results from the MCPS-PRS Alliance, which collects royalties for songwriters, composers and music publishers, showed that £74.7 million was made from sales of physical formats, such as CDs and DVDs, down from £82.3 million in the same period last year.

"The decrease of 15 per cent in CD sales was overturned by innovation and growth in licensing in other areas of the business" - Steve Porter

But sales collected from songs played in public performance, including and bars and workplaces, rose 9 per cent to £70.5 million in a sign of the changing dynamics in the music industry.

The Alliance added that money from live concerts rose 5.4 per cent.

Income from broadcasters and internet sites also raced ahead, up 13 per cent to £82.3 million, as songwriters were able to negotiate deals with online providers to allow users to download songs.

Online royalties rocketed by more than 40 per cent year-on-year to £7 million thanks to the continued growth in the licensed online music market led by iTunes.

Steve Porter, chief executive of the Alliance, said: "We are making inroads into the online market with our groundbreaking licensing deals with iTunes, YouTube and Bebo, with further gains anticipated in the year.

"The decrease of 15 per cent in CD sales was overturned by innovation and growth in licensing in other areas of the business."