Wednesday, December 3, 2008

Atlantic Records digital revenues surpass CDs

More than half of Atlantic Records music sales in the U.S. now derive from digital products including iTunes downloads and ringtones, the first time a major label's digital revenues have surpassed traditional media formats. 

Atlantic, a unit of Warner Music Group reports digital sales now account for 51 percent of revenues. Despite Atlantic's digital surge, the music industry has largely given up on hopes that digital revenues would eventually offset the declining sales of physical media. Market analysis firm Forrester Research estimates music sales in the U.S. will slump to $9.2 billion in 2013 from $10.1 billion this year. Its tough time ahead for the record labels and gone were the rosy days when they were making heaps of money. 

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