Figures released today show that mobile phone 'ringtunes' and online services helped to triple digital music sales in the first half of this year, offsetting a decline in overall sales.
Digital music now makes up 6% of total sales, or about $790m, according to first-half data from the International Federation of the Phonographic Industry (IFPI) trade group.
Sales of CDs and other physical formats continued a long decline, which the music industry has blamed mainly on piracy, falling to $13.2 billion from $13.4 billion a year earlier.
'It feels as if the decline is lessening,' said IFPI chairman and chief executive John Kennedy, who has predicted that full-year sales will be roughly flat.
The IFPI said that lower CD prices, flagging DVD music video sales and competition from other entertainment sectors also contributed to the decline.
The music industry has used a carrot-and-stick approach to reverse falling music sales by promoting digital music services such as iTunes, Napster and Rhapsody while aggressively targeting illicit downloaders with lawsuits.
Despite the success of the market-leading iTunes service, Apple and the music labels may be heading for a showdown when licence agreements expire in the spring. The labels are pushing for the ability to charge different rates for different songs, while Apple is insisting that its flat-price model be maintained.
