Digital music sales double in 2008

While CD sales continue to fall, new figures show sales of digital albums doubled to $13.4 million in 2008.

The Australian Recording Industry Association (ARIA) sales figures from January to December 2008 show that total digital sales rose more than 35 per cent in dollar value to $54.1 million, while physical product sales slumped by 12 per cent.

Digital tracks also increased in value by 43 per cent in a year that produced the first two digital-only number one singles - Rihanna's Don't Stop The Music and Katy Perry's I Kissed A Girl.

CD singles, albums, music videos and DVD sales were all down on 2007 rates.

But bucking the trend were vinyl albums, where sales have almost doubled in the past year to just under $400,000.

ARIA chairman Ed St John said it was encouraging to see the growth and enormous potential in digital music sales.

"Whilst the physical CD still accounts for the bulk of album sales, and the CD retail business is still alive and well, digital albums represent a significant opportunity for the industry," he said.

"There's no question that there are some real changes occurring in music consumer behaviour, indeed the industry anticipated the trend and made preparations for it."

The music industry experienced particularly strong sales in the final quarter of 2008, thanks to major releases by P!nk, Kings of Leon and AC/DC.

CD sales increased by as much as 57 per cent on a week by week comparison over the same period in 2007.

Andre Rieu boosted music DVD sales, with nine different titles at number one, across 36 weeks of the year.

St John said despite the global economic outlook, the music industry was confident sales figures would remain solid in 2009, on the back of strong releases and tour activity.

"I think the essential message here is that music is a very resilient product in times of economic instability," he said.

"Not only are we seeing strong and consistent growth in digital music, we've also seen a strong surge in spending on music - both physical and digital - over the last quarter or 2008 and the first weeks of 2009.

"The Australian music industry in 2009 is leaner, smarter and more diversified."