Label Execs Talk Digital Sales

At Sony BMG Music Entertainment digital sales are running at 40% of overall U.S. sales volume pace this year, and Thomas Hesse, president of global digital and U.S. sales predicts that the company will achieve a 50/50 split next year.

That was one of the revelations that came out of the NARM panel on music industry leaders talking digital strategy on the last day (May 7) of the organization’s annual convention.

Of Sony BMG's digital sales, two-thirds are online computer downloads and subscriptions while one-third are mobile sales, Hesse added.

Following Hesse on the panel, Universal Music Group Distribution (UMGD) executive VP/GM of digital distribution Amanda Marks said that digital downloads now account for 54.7% of all digital sales volume, while subscription services account for 7.3%, and video downloads and streams combined for about 3%.

Moving over to mobile, Marks reported that mastertones account for 26.7% of all digital sales, while ringbacks are at 3.9%; mobile OTA track downloads are 3.7%; mobile OTA video 0.3% and other mobile products 0.4%.

During her segment, Marks took umbrage to press reports that say ringtones are over. She said UMGD’s mastertones are up 23% year-over-year, citing high sales from rapper Lil Wayne. Meanwhile, she noted that subscription services are up 20%.

Both speakers predicted that ad-supported services will soon hit its stride and be a steady income producer.