CD royalties dip but online pay goes up for songwriters

Published on Sunday 10 August 2008 22:29

SONGWRITERS made 15 per cent less money from CD sales in the first six months of the year as consumers choose to download music from the internet, latest figures reveal.

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.

It said that within that, CD sales dropped 15 per cent in the first six months of the year.

But sales collected from songs played in public performance, including in 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."