2006: Web and P2P Music Downloads Both Rise

Filed in archive Stats on April 2, 2007

End of year numbers from The NPD Group and IFPI (International Federation of the Phonographic Industry) show both and Web and P2P music downloads continuing to rise.

On the web licensed songs double to 4 million and total downloads to 795 million with 582 million sold in the U.S.

iTues claimed 70% of the digital download market. However the average iTunes user bought 11% fewer songs. iTunes, Napster, and Wal-Mart lost market share, while Yahoo remained even.

At the end of 2006 47 million US households had at least one member who used digital music. 15 million or 32% of them obtained at least one song via P2P.

Russ Crupnick, NPD Group entertainment industry analyst, said ""The volume of music files purchased legally is swamped by the sheer volume of files being traded illegally, whether on P2P or burned CDs sourced from borrowed files."

In the P2P world limewire has become the leading site after Kazaa and eDonkey have exited the market due to legal pressure. Limewire claims a 62% market share. The average Limewire user downloaded 309 music files in 2006.