II International Market

World Sales and Market Trends

World Retail Value Recorded Music

Sales Market Value ($000,000 US)

In July 2004, American and European

antitrust regulators approved the merger of

40

the Sony Music Group and BMG, clearing

35

39,621

39,766

38,532

38,083

38,075

the way for the 50/50 joint venture. The

36,630

30

36,128

regulators said there was insufficient 

33,374

32,012

25

30,981

evidence that the merger, which reduces

20

the number of major music labels from

15

five to four, would negatively affect 

consumers.

10

5

The creation of Sony BMG comes in the

0

wake of the fourth straight year of a global

2003

2002

2001

2000

1999

1998

1997

1996

1995

1994

decline in sound recording sales. According

Source: IFPI Music & Copyright, April 28, 2004.

to the International Federation of the

Phonographic Industry (IFPI), worldwide

Retail Value by Region 

sales in 2003 fell 7.6% in constant US

($000,000,000 US Variable) (2003)

dollars.

40

Among major markets, the largest

declines were seen in Europe. Germany

Latin America  0.8

Other  1.1

Asia  5.8

and France saw sales plummet 19% and

14.4%, respectively, while Spain's sales

fell 9.4%. As a region, Europe, which

accounts for 37% of the world market,

North 

America  12.5

saw sales decline 8.7%, compared with

a 5.9% drop in North America. Japan,

Europe  11.8

y

with a 15.5% share of the global market,

saw sales fall 9.2%.

Total 32.0

Source: IFPI Music & Copyright, April 28, 2004.

24