International Federation of the Phonographic Industry Releases Money Lost from Music Piracy

According to the International Federation of the Phonographic Industry, record sales dropped 10 percent last year in a growing trend. The industry group is worried that digital piracy will continue to reduce profits dramatically if strict crackdowns are not put into action.

According to an article in the New York Times, there has been a 30 percent decline in music sales around the world from 2004 to 2009.

One could mention that many legal music distribution methods are picking up financial steam, but IFPI Chief Executive John Kennedy says it is not enough to stem the tide of losses. CD sales decreased 16 percent worldwide, amounting to about $1.7 billion in profit losses for the industry.

But the news is not all bad, apparently legal digital music sales has risen 12 percent in the past year, making the global industry about $4.2 billion. Regardless, the IFPI said that about 95 percent of music on the Internet is pirated.