Online music growth slows

Sales of individual songs grew just 1% in 2010, a sign the market is maturing.

Todd Martens and Alex Pham, Los Angeles Times Staff Writers

January 6, 2011

Digital music sales, which over the years have provided optimism for the music industry in the face of crumbling CD sales, are starting to flatline as consumers turn to a growing number of free and legal ways of listening to hit songs whenever they want.

Sales of individual digital songs grew just 1% in 2010, down from 8% in 2009 and 27% in 2008, according a report released Wednesday by market research firm Nielsen SoundScan.

The slowing digital numbers are a sign that the market for digital music is maturing, said Eric Garland, chief executive of Big Champagne, a digital music consulting firm. Garland believes the numbers point to another change in the market — the emergence of free and legal alternative sources to music online such as YouTube, Vevo and Pandora.