IFPI Says Digital Music Growth Up 8% Globally

IFPI, the music industry’s trade group, has released the 2012 Digital Music Report.  In a nut shell, the good news is that global digital music sales rose 8% in 2011, which was the first growth rate increase since 2004.  The bad news, according to the trade group, is that piracy is still a major problem in the industry.

IFPI is attributing a portion of digital music sales growth to the emerging on-line music subscription services like Spotify and Deezer. The report says that there are now 13 million subscribers to services like this compared to just 8 million last year. There were also small sales increases at on-line music vendors like Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) in 2011.

And though digital music sales account for only 32% of the music industry’s total revenue, it’s still a key component, and one that was slashed in half less than a decade ago with the emergence of Napster and other illegal music downloading sites. The IFPI estimates that even today a quarter of all Web-users “access unauthorized services on a monthly basis.”

The report asserts that a key driver in digital music sales growth was tougher anti-piracy laws around the world. The report cites France’s “three-strikes” legislation which punishes repeat offender pirates with fines and even the loss of Internet access. Digital music sales in the country grew 20% last year compared to the global 8%. IFPI is rallying for stronger laws here in the US and fully backs the hot button SOPA/PIPA proposed legislation.

Here’s how digital music stocks are trading:

Pandora Media Inc (NYSE:P): P shares recently traded at $12.87, down $0.35, or 2.65%. They have traded in a 52-week range of $9.15 to $26.00. Volume today was 553,941 shares versus a 3-month average volume of 1,290,170 shares. The company’s trailing earnings are $-0.22 per share.

SIRIUS XM Radio Inc. (NASDAQ:SIRI): SIRI shares recently traded at $2.12, up $0.02, or 0.95%. They have traded in a 52-week range of $1.27 to $2.44. Volume today was 18,957,088 shares versus a 3-month average volume of 54,325,200 shares. The company’s trailing P/E is 52.88, while trailing earnings are $0.04 per share.

Apple Inc. (NASDAQ:AAPL): AAPL shares recently traded at $423.50, down $3.91, or 0.91%. They have traded in a 52-week range of $310.50 to $431.37. Volume today was 4,521,728 shares versus a 3-month average volume of 12,570,100 shares. The company’s trailing P/E is 15.30, while trailing earnings are $27.68 per share.

Amazon.com Inc. (NASDAQ:AMZN): AMZN shares recently traded at $186.65, up $0.56, or 0.3%. They have traded in a 52-week range of $160.59 to $246.71. Volume today was 2,519,714 shares versus a 3-month average volume of 6,550,690 shares. The company’s trailing P/E is 98.39, while trailing earnings are $1.90 per share.

Google Inc. (NASDAQ:GOOG): GOOG shares recently traded at $580.88, down $4.64, or 0.79%. They have traded in a 52-week range of $473.02 to $670.25. Volume today was 1,112,093 shares versus a 3-month average volume of 3,021,240 shares. The company’s trailing P/E is 19.52, while trailing earnings are $29.76 per share.

To contact the reporter on this story: Ashley Cloninger at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com