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WASHINGTON - The Recording Industry Association of America (RIAA) today released its annual report tallying shipments of physical and digital products for 2006.

Digital music formats again demonstrated growth in 2006, with 586 million digital singles downloaded – a 60 percent increase over 2005 – and 28 million albums downloaded, a 103 percent increase. Revenues from various mobile formats grew 84 percent to $775 million and subscription service revenues were $206 million, a 38 percent increase versus the prior year. The growth in digital revenues partially compensated for the decline in physical sales.

The overall retail value of the U.S. record industry was $11.5 billion in 2006, a 6.2 percent decline compared to 2005. There were 615 million CDs shipped to retail and specialty outlets in 2006, a 12.8 percent drop from the previous year.

Specifically for the Latin music genre, approximately 41.6 million CDs were shipped to various retail outlets, representing $561 million in retail value. This was a 21.3 percent decline in value compared to 2005.

“Today’s music marketplace has challenges but it also offers reason for hope and optimism,” said Mitch Bainwol, Chairman and CEO, RIAA. “The appetite for music is as strong as ever and a digital marketplace now worth nearly $2 billion has emerged virtually overnight. Beyond the existing marketplace, the record companies continue to develop additional new business models and revenue streams like mobile and online videos. Our continuing mission is to help level the playing field so retailers and legal services don’t have to compete with piracy and to work for parity in a marketplace with increasing convergence between various music distribution and broadcast outlets.”

The RIAA’s shipment report reflects company shipments of music products at suggested retail values. It does not capture licensing revenues or performance royalties (such as those paid by satellite and Internet radio broadcasters). The data are supplied by PricewaterhouseCoopers, LLP to the RIAA.


The Recording Industry Association of America is the trade group that represents the U.S. recording industry. Its mission is to foster a business and legal climate that supports and promotes our members' creative and financial vitality. Its members are the record companies that comprise the most vibrant national music industry in the world. RIAA® members create, manufacture and/or distribute approximately 90% of all legitimate sound recordings produced and sold in the United States. In support of this mission, the RIAA works to protect intellectual property rights worldwide and the First Amendment rights of artists; conducts consumer, industry and technical research; and monitors and reviews state and federal laws, regulations and policies. The RIAA® also certifies Gold®, Platinum®, Multi-Platinum™, and Diamond sales awards, as well as Los Premios De Oro y Platino™, an award celebrating Latin music sales.

Contacts:

RIAA
Jonathan Lamy
Jenni Engebretsen
202-775-0101