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`SIGHTSOUND TECHNOLOGIES
`EXHIBIT 2327
`
`CBM2013—00023 (APPLE V. SIGHTSOUND)
`PAGE 000001
`
`
`
`

`
`News and Notes On 2008 RIAA Shipment Data
`
`Joshua P. Friedlander
`
`RIAA Vice President, Research and Strategic Analysis
`
`Sales of digital music continued growing at a rapid pace in 2008, and now constitute 32
`percent of the total market by value, and $2.7 billion in total shipments. Digital downloads
`grew 30 percent to $1.6 billion. Demonstrating the continuing maturation and adoption of
`the digital music download model, music fans are becoming increasingly comfortable
`buying full length albums online, with digital album growth rates exceeding those of
`digital singles. On a dollar basis, digital albums have grown from 25 percent of the
`download market in 2004 to 36 percent in 2008.
`
`If digital singles are converted into an album equivalent (divided by ten) and added to both
`CDs and digital albums, the overall album unit decline in 2008 was 14 percent (635
`million to 545 million).
`
`Distributions for digital performance rights, which includes payments to artists and labels
`for webcasting, satellite radio, and other digital music services, increased 74 percent to $82
`million in 2008. Though currently a small component of the overall market, performance
`revenues represent an increasingly important piece of the music industry landscape as fans
`shift listening habits to digital formats.
`
`The increase in digital shipments only partially offset the decline in shipments of physical
`products, as overall shipments fell 18 percent year-over-year to $8.5 billion. The market
`for physical recorded music goods fell 28 percent to $5.8 billion. Both CDs and music
`videos experienced significant declines.
`
`Vinyl continued to stage a comeback as the format more than doubled year-over-year to
`$57 million, the highest level since 1990. A favorite product of audiophiles and devout
`fans, shipments of vinyl were bolstered by the roll out of both new release and catalog
`material.
`
`Mobile unit shipments (including ringtunes, ringbacks, and full length content) were down
`7 percent year-over-year. Growth of 36 percent in full length (audio and video) mobile
`downloads and 18 percent in ringback tunes were offset by a 17 percent decline in
`ringtunes. Full length audio and video mobile downloads were 16 percent of the mobile
`market, and ringbacks accounted for another 16 percent of mobile shipments in 2008.
`
`For news media inquiries, please contact: Jonathan Lamy
`Cara Duckworth
`
`Liz Kennedy
`202/775-0101
`
`PAGE 000002
`
`

`
`
`
`2009 Year-End Shipment Statistics
`202-775-0101
`
`Manufacturers‘ Unit Shipments and Retail Dollar Value
`(In Millions, net after returns)
`
`“/0 CHANGE
`
`
`
`977.1
`
`221.4
`
`100.0
`
`368.4
`5,471.3
`0.7
`3.5
`0.1
`0.9
`2.9
`56.7
`0.4
`2.9
`12.8
`218.9
`12.3
`215.7
`385.5
`5,758.5
`332.5
`5,474.3
`
`728.8
`
`213.1
`
`155.5
`
`4,274.1
`
`3.1
`
`0.0
`
`60.2
`
`2.5
`
`218.1
`
`212.9
`
`4,562.0
`
`272.0
`4,382.2
`
`-25.4%
`
`-3.7%
`
`55.5%
`
`-20.5%
`-21.9%
`17.8%
`-12.5%
`-102.8%
`-104.9%
`10.8%
`6.2%
`-30.2%
`-15.3%
`-5.2%
`-0.4%
`-6.4%
`-1.3%
`-19.7%
`-20.8%
`-18.2%
`-20.0%
`
`1,032.2
`
`1,220.3
`
`635.3
`
`763.4
`
`2.6
`
`41 .3
`
`6.3
`
`40.6
`
`9.2%
`18.2%
`20.2%
`
`147.1%
`
`-1 .9%
`
`1,711.5
`
`2,030.7
`
`13.7%
`
`(Units Shipped)
`(Dollar Value)
`
`Download Single
`
`Download Album
`
`Music Video
`
`Total Units
`Total Value
`
`Digital Performance Roya|ties4
`
`Physical
`
`Subscription
`DVD Video5
`
`CD
`
`CD Single
`
`Cassette
`
`LPIEP
`
`Vinyl Single
`
`Music Video
`
`Total units“
`Total value“
`
`Total Retail Value
`
`Total Digital & Physical
`
`
`34%
`
`Total Value
`
`8,768.4
`
`7,690.0
`
`-12.3%
`
`% of Shipments
`Physical
`Digital
`
`66%
`
`Retail value is value of shipments at recommended or estimated list price
`Note: Historical digital data updated for 2008
`1 Includes Singles and Albums
`2 Includes Master Ringtunes, Ringbacks, Music Videos, Full Length Downloads, and Other Mobile
`3 Weighted Annual Average
`4 Estimated payments in dollars to performers and copyright holders distributed by SoundExchange
`5 While broken out for this chart, DVD Video Product is included in the Music Video totals
`6 Total includes Cassette Single, DVD Audio, and SACD shipments not broken out separately in this report
`7 Units total includes both albums and singles, and does not include subscriptions or royalties
`Permission to cite or copy these statistics is hereby granted, as long as proper attribution is given to the Recording Industry Association of America
`
`PAGE 000003
`
`

`
`News and Notes On 2009 RIAA Shipment Data
`
`Joshua P. Friedlander
`
`RIAA Vice President, Research and Strategic Analysis
`
`In 2009 digital formats comprised a record 41 percent of total music shipments in the United
`States. This is an increase from 34 percent in 2008, and 25 percent in 2007. The total digital
`music market reached $3.1 billion for 2009. Digital downloads continued double digit growth in
`the past year reaching $2.0 billion, 19 percent growth over the 2008 total of $1.7 billion. Digital
`album growth continued to grow faster than single tracks, and on a dollar basis comprised 38
`percent of the download market.
`
`Distributions for digital performance rights, which include payments to performers and copyright
`holders for webcasting, satellite radio, and other non-interactive digital music services, increased
`55 percent to $155 million in 2009. Performance revenues represent an increasingly important
`piece of the music industry landscape as fans shift listening habits to digital formats.
`
`Overall shipments of recorded music in the United States fell 12 percent to $7.7 billion. Growth
`in digital formats only partially offset a decline of 21 percent in physical formats. The decline in
`CD shipments accounted for virtually all the decline on the physical side, though vinyl continued
`to be a positive note, again growing in 2009. Music videos remained flat year-over-year.
`
`Mobile shipments (including ringtunes, ringbacks, and full length content) declined 25 percent in
`2009 to $729 million. Ringtunes experienced a sharp decline of 34 percent, while ringbacks fell
`11 percent in value. Full track mobile downloads were down 5 percent. Ringtones continue to
`make up the majority of the mobile digital music market, with 60 percent share of the category
`by value. Ringbacks grew to 20 percent of the market from 16 percent in 2008, and full length
`tracks and music videos were 19 percent in 2009 versus 16 percent the prior year.
`
`Data note: The RIAA presents the most up-to-date information available in its annual shipment
`reports and new online subscription-only shipment statistics database. Based on additional
`market research, historical data for the digital categories has been updated for 2007 and 2008.
`
`For news media inquiries, please contact: Jonathan Lamy
`Cara Duckworth
`
`Liz Kennedy
`202/775-0101
`
`PAGE 000004
`
`

`
`
`
`2010 Year-End Shipment Statistics
`202-775-0101
`
`Manufacturers‘ Unit Shipments and Retail Dollar Value
`(In Millions, net after returns)
`
`Digital
`
`(Units Shipped)
`(Dollar Value)
`
`Download Single
`Download Album
`
`Total Units
`Total Value
`
`s“bs°”'°“°"3
`
`Digital Performance Royalties‘
`
`Physical
`
`(Units Shipped)
`(Dollar Value)
`
`.
`
`.
`
`.
`
`.
`
`5
`
`_
`DVD V'°'°°
`Total units“
`
`Total value“
`Total Retail Units
`Total Retail Value
`
`CD
`
`292 9
`4 274 1
`’ 09
`
`225 3
`3,361 3
`1.2
`
`Music Video
`-19.6%
`
`% CHANGE
`2009-2010
`
`2.1%
`12.0%
`8.8%
`8.6%
`-3.4%
`1.2%
`-11.1%
`-11.1%
`2.3%
`10.2%
`
`-27.9%
`-27.7%
`29.9°
`-5.7%
`
`60.3%
`
`—22.9%
`—21.4%
`31.2%
`
`25.9%
`
`-3.9%
`
`—22.5%
`
`—22.4%
`—15.3%
`-22.2%
`
`.2o.2%
`-21.8%
`
`1,138.3
`1,220.3
`76.4
`763.4
`1.7
`6.3
`20.4
`40.6
`1,236.8
`2,030.7
`
`305.8
`728.8
`1.2
`213.1
`
`155.5
`
`1,162.4
`1,366.8
`83.1
`828.8
`1.7
`6.4
`18.1
`36.1
`1,265.4
`2,238.1
`
`220.5
`526.7
`1.5
`200.9
`
`249.2
`
`3.2
`
`0.3
`
`11.3
`
`11.2
`206.9
`309.2
`
`4,555.9
`271.7
`4,376.1
`
`4.0
`
`0.3
`
`9.1
`
`3.7
`175.3
`240.5
`
`3,535.1
`212.4
`3,518.5
`
`Total Digital & Physical
`
` Total units’
`
`1,351.3
`7,683.9
`
`1,726.3
`6,850.1
`
`-5.3%
`-10.9%
`
`Total Value
`
`% of Shipments
`Physical
`Digital
`
`2009
`59%
`41%
`
`2010
`53%
`47%
`
`Retail value is value of shipments at recommended or estimated list price
`Note: Historical digital data updated for 2007 and 2008
`
`1 Includes Singles and Albums
`2 Includes Master Ringtunes, Ringbacks, Music Videos, Full Length Downloads, and Other Mobile
`3 Weighted Annual Average
`4 Estimated payments in dollars to performers and copyright holders distributed by SoundExchange
`5 While broken out for this chart, DVD Video Product is included in the Music Video totals
`6 Total includes Cassette Single, DVD Audio, and SACD shipments
`7 Units total includes both albums and singles, and does not include subscriptions or royalties
`
`Permission to cite or copy these statistics is hereby granted, as long as proper
`attribution is given to the Recording Industry Association of America.
`
`PAGE 000005
`
`

`
`News and Notes on 2010 RIAA Music Shipment Data
`
`Joshua P. Friedlander
`
`RIAA Vice President, Research and Strategic Analysis
`
`The U.S. total digital music market grew to $3.2 billion in 2010, up 3% from the prior year.
`Digital downloads continued double digit annual growth reaching $2.2 billion, a 10% increase
`
`over the 2009 total of $2.0 billion. Although digital download unit growth was only 2%,
`
`stronger growth in albums and the first full year of variable pricing contributed to the larger
`
`growth in value. Digital albums and tracks grew by value at 9% and 12% rates, respectively.
`
`Overall, digital formats comprised a record 47% of total music shipments in the United States.
`
`For comparison, digital shipments only accounted for 9% of the market back in 2005.
`
`Distributions for digital performance rights, which include payments to performers and
`
`copyright holders for webcasting, satellite radio, and other non-interactive digital music
`services, increased 60% to $249 million in 2010. Performance revenues represent an
`
`increasingly important piece of the music industry landscape as fan interest grows in digital
`
`listening and access formats.
`
`Overall shipments of recorded music in the United States fell 11% to $6.9 billion. Growth in
`
`digital formats only partially offset a decline of 20% by value in physical formats. The decline in
`
`CD shipments accounted for the vast majority of the decline on the physical side, though vinyl
`albums continued to be a positive note, growing in 2010 by 44% to $87 million — their highest
`level since 1990.
`
`Mobile shipments (including ringtunes, ringbacks, and full length content) declined 28% in 2010
`to $527 million. Ringtunes experienced a steep decline of 41%, while ringbacks fell 26% in
`
`value. Full track mobile downloads were down 23% (full track purchases made on mobile
`
`devices through online stores, rather than mobile content stores, are counted as digital
`
`downloads).
`
`In 2010, ringtones accounted for about half of the mobile digital music market,
`
`with 49% share of the category by value. Ringbacks remained at 20% of the market, in-line with
`
`2009, while full length tracks and music videos grew to 31% in 2010 versus 19% the prior year.
`
`The RIAA presents the most up-to-date information available in its annual shipment reports and
`
`subscription-only online shipment statistics database (www.riaa.com‘ shi mentloin. h).
`
`Based on additional market research, historical data for the music video category has been
`
`updated for 2008 and 2009.
`
`For news media inquiries, please contact: Jonathan Lamy
`Cara Duckworth
`
`Liz Kennedy
`
`202/775-0101
`
`PAGE 000006
`
`

`
`
`
`
`
`REPRESENTING
`MUSIC
`
`2011 Year-End Shipment Statistics
`202-775-0101
`
`Manufacturers‘ Unit Shipments and Retail Dollar Value
`(In Millions, net after returns)
`
`Digital
`
`°/u CHANGE
`2010-2011
`
`(Units Shipped)
`Dollar Value
`
`Download Single
`Download Album
`
`Kiosk‘
`
`Total Units
`Total Value
`
`1,177.4
`1,317.4
`85.8
`872.4
`1.7
`6.4
`18.4
`36.6
`
`1,283.4
`2,232.9
`
`1,306.2
`1,492.7
`104.8
`1,091.4
`1.4
`3.3
`16.3
`32.4
`
`1,428.6
`2,619.7
`
`448.0
`
`277.4
`
`10.9%
`13.3%
`22.1%
`25.1%
`-18.3%
`-49.2%
`-11.6%
`-11.6%
`
`11.3%
`17.3%
`
`-38.1%
`12:23:
`
`-4.8%
`-8.5%
`28.3%
`
`31.5%
`
`19.7%
`
`-15.0%
`
`—15.1%
`—14.8%
`-4.5%
`-7.7%
`
`-4.7%
`-7.8%
`
`Music Video
`
`
`Physical
`
`(Units Shipped)
`(Dollar Value)
`
`.
`
`.
`
`.
`
`CD
`
`253.0
`3,389.4
`1.0
`
`240.3
`3,100.7
`1.3
`
`4.2
`
`0.3
`
`9.1
`
`3.5
`169.7
`267.7
`3,663.9
`
`233.0
`3,438.7
`
`5.5
`
`0.4
`
`7.7
`
`7.2
`144.5
`255.7
`3,381.1
`
`222.0
`3,170.9
`
`.
`
`.
`
`6
`
`_
`DVD V"‘°°
`Total Units
`Total Value
`
`Total Retail Units
`Total Retail Value
`
`Total Digital & Physical
`Total Units7
`Total Value
`
`1,739.6
`6,995.0
`
`1,800.2
`7,007.7
`
`3.5%
`0.2%
`
`% of Shipments”
`Physical
`Digital
`
`2010
`54%
`46%
`
`2011
`50%
`50%
`
`Retail Value is the value of shipments at recommended or estimated list price
`Note: Historical data updated for 2009 and 2010
`
`1 Includes Singles and Albums
`2 Includes Master Ringtunes, Ringbacks, Music Videos, Full Length Downloads, and Other Mobile
`3 Weighted annual average number of subscribers
`4 Estimated payments in dollars to performers and copyright holders distributed by SoundExchange
`5 Includes fees and royalties from synchronization of sound recordings with other media
`6 While broken out for this chart, DVD Video Product is included in the Music Video totals
`7 Units total includes both albums and singles, and does not include subscriptions or royalties
`8 Synchronization Royalties excluded from calculation
`
`Permission to cite or copy these statistics is hereby granted, as long as proper
`attribution is given to the Recording Industry Association of America.
`
`PAGE 000007
`
`

`
`News and Notes on 2011 RIAA Music Shipment Data
`
`Joshua P. Friedlander
`
`RIAA Vice President, Strategic Data Analysis
`
`While the industry remains less than half the total value at its high in 1999, total U.S. music
`
`shipments in 2011 were up for the first time since 2004, albeit slightly, versus the prior year.
`Total shipments of $7.0 billion were up 0.2% when compared with 2010. Digital sales grew
`
`9.2% compared with 2010, offsetting the physical decrease of 7.7%, a much smaller decline in
`
`physical than experienced in recent years. Overall, digital formats comprised slightly above
`
`50% of total music shipments in the United States, as digital became more than half the market
`
`for the first time ever. Diversification among formats continued to widen, as a greater amount
`
`of shipments came from non-traditional formats than ever before.
`
`Digital downloads in 2011 totaled $2.6 billion, up 17% from the prior year. Digital albums
`showed particularly strong gains, up 25% by value to $1.1 billion, and surpassing 100 million in
`volume for the first time. Digital individual track sales also grew to $1.5 billion, and 1.3 billion
`
`copies.
`
`Revenues from music subscription services grew to a new high in 2011 of $241 million, an
`
`increase of 13% from the prior year. The number of users also grew from 1.5 to 1.8 million.
`
`Growth in both digital performance royalties and subscription services indicates increasing
`
`consumer demand for music access models, which give fans the ability to listen to incredibly
`
`broad selections of music whenever and wherever they want.
`
`Distributions for digital performance royalties, which include payments to performers and
`
`copyright holders for webcasting, satellite radio, and other non-interactive digital music
`services, increased 17% to $292 million in 2011. Revenues from digital performance royalties
`
`for the first time surpassed the sales of ringtunes, ringbacks, and other mobile products, which
`fell 38% to $277 million in 2011. Ringtunes declined 39%, while ringbacks fell 28% (both by
`
`value). Ringtunes accounted for 56% of the mobile digital music market by value, and ringbacks
`were 28%.
`
`The RIAA shipment report is for the first time including royalties from synchronization of
`
`recorded music with other content (such as movies, TV, video games, or other media). Data
`
`back to 2009 is included for comparison. Synchronization royalties were up 4% year-over-year,
`
`to $196 million in 2011. Note that synchronization royalties are effectively included at
`
`wholesale value since there is no retail value for comparison, and are not adjusted to represent
`
`non—major label distributed content. They are excluded from the calculation of the digital
`
`market percentage.
`
`The decline of 7.7% by total value in physical formats was primarily accounted for by an 8.5%
`
`value decline in CD shipments. Although still only 2% of the overall market, vinyl albums
`
`continued to grow in 2011, up 34% versus the prior year to $119 million, with more than 5
`
`million units shipped.
`
`PAGE 000008
`
`

`
`The 2011 music industry shipment data confirms that digital music has truly become
`
`mainstream, though there are certainly still challenges presented by massive volumes of digital
`
`theft. Half of industry shipments came through digital channels in 2011, and digital downloads
`
`— hardly a new format anymore - have continued growing. More than 100 million digital albums
`
`were sold in a year for the first time. Access models like subscription services and Internet
`
`radio (represented by digital performance royalties) have continued to grow both in popularity
`
`as well as in their revenue contribution to the industry. No longer just a niche, digital music has
`
`shown it can be a model - or perhaps more accurately a variety of models - for the music
`
`industry going forward.
`
`Please note that the RIAA presents the most up-to-date information available in its annual
`
`shipment reports and subscription-only online shipment statistics database
`(htt
`:. ‘www‘.ri:a:a1.co*m keg statistics.
`Ch ?co.nt_ent selector=riaa-shi ment—dIatab.as:e-lo. s--in).
`
`Based on additional market research, historical data has been updated for 2009 and 2010.
`
`For news media inquiries, please contact: Jonathan Lamy
`
`Cara Duckworth Weiblinger
`
`Liz Kennedy
`
`202/775-0101
`
`PAGE 000009
`
`

`
`
`
`2012 Year-End Industry Shipment and Revenue Statistics
`202-775-0101
`
`United States Unit Shipments and Estimated Retail Dollar Value
`(In Millions, net after returns)
`Digital Permanent Download
`
`% CHANGE
`2011-2012
`.
`
`(Units Shipped)
`
`Dollar Value
`
`Digital Subscription & Streaming
`
`
`
`$462.0
`3.4
`$5708
`
`58.2%
`86.3%
`589%
`
`SoundExchange Distributionsa
`_
`_
`4
`_
`_
`_
`Subscription & Streaming Not Distributed by SoundExchange
`
`$292.0
`1.8
`$3592
`
`TOTAL DIGITAL VALUE
`
`1%
`
`Physical
`(Units Shipped)
`Dollar Value
`
`CD
`
`240.8
`$3,100 7
`
`210.9
`$2,532 0
`
`42.4%
`-18.3%
`
`1 5
`
`
`
`LPIEP
`Vinyl Single
`.
`.
`
`$119.4
`$24
`7
`$1510
`$80
`DVD Audio
`SACD
`—Total Physical Units 255.7
`
`Total Ph sical Value
`$3,381.1
`Total Retail Units
`222.0
`Total Retail Value
`$3,170.9
`
`225.8
`$2,822.2
`182.9
`$2,584.3
`
`-11.7%
`-16.5%
`—17.6%
`-18.5%
`
`
`
`
`
`Foralistofauthorizedservicesseewww.whymusicmatters.com
`
`TOTAL DIGITAL AND PHYSICAL
`Total units“
`1,924.9
`1,s1e.5
`-0.5%
`
`Total Value
`$7,133.1
`$7,os5.5
`-0.9%
`% of shipments’
`2011
`2012
`Physical
`49%
`41%
`Digital
`51%
`59%
`
`Retail Value is the value of shipments at recommended or estimated list price
`Note: Historical data updated for 2011
`
`Ilncludes Singles and Albums
`Qlnclucles Master Ringtunes, Ringbacks, Music Videos, Full Length Downloads, and Other Mobile
`3 Estimated payments in dollars to performers and copyright holders for digital radio services under statutory licenses
`4 Streaming, tethered, and other subscription and non—subscription audio and music video services (including ad-supported) not operating under statutory licenses.
`Services with no retail value equivalent included at wholesale value.
`Volume is annual average number of subscribers for subscription services.
`5 Includes fees and royalties from synchronization of sound recordings with other media
`6 Units total includes both albums and singles, and does not include subscriptions or royalties
`7 Synchronization Royalties excluded from calculation
`Permission to cite or copy these statistics is hereby granted, as long as proper
`attribution is given to the Recording Industry Association of America.
`
`PAGE 000010
`
`

`
`News and Notes on 2012 RIAA Music Industry Shipment and Revenue Statistics
`
`Joshua P. Friedlander
`
`Vice President, Strategic Data Analysis, RIAA
`
`Though revenues are still well below the highs of over a decade ago, total US music industry
`revenues showed a second year of stabilization relative to the steep declines of prior years.
`
`Overall recorded music sales revenues for 2012 were $7.1 billion, down 0.9%, after a slight
`increase from 2010 to 2011.
`
`Figure 1
`
`$9-
`
`Total US Music Industry Revenues
`
`
`
`5Billions
`
`$
`2009
`2010
`2011
`2012
`
`Source: RIAA
`
`Industry revenues from digital formats continued to grow, and in 2012 surpassed $4 billion for
`the first time ever, up 14.0% versus the prior year. Overall, digitally distributed formats
`comprised 59% of the total US market by dollar value in 2012, after crossing the 50% threshold
`for the first time in 2011.
`
`Digital growth was driven by large increases in revenues through what can broadly be referred
`to as "access models", where users can choose to listen from large libraries of music rather
`than purchasing individual songs or albums. This category includes revenues from subscription
`services (such as Rhapsody and paid versions of Spotify, among others), streaming radio service
`revenues that are distributed by SoundExchange (like Pandora, SiriusXM, and other Internet
`radio), and other non—subscription streaming services (such as YouTube, Vevo, and ad-
`supported Spotify, which this year are included for the first time in this report).
`
`PAGE 00001 1
`
`

`
`Figure 2
`
`20%
`
`Proportion of Total Industry Revenues From
`
`Access Models
`
`15%
`
`10%
`
`5%
`
`0%
`
`2007
`
`2008
`
`2010
`2009
`Source: RIAA
`
`2011
`
`2012
`
`These types of services have quickly become significant revenue contributors for the industry.
`Collectively, they went from just 3% of total industry revenues in 2007 to 15% in 2012, totaling
`over $1 billion for the year. Distributions for digital performance royalties from
`
`SoundExchange, which include payments to performers and copyright holders for webcasting,
`satellite radio, and other non-interactive digital music services, increased 58% to $462 million in
`2012.
`
`Revenues from subscription services and streaming services that do not fall under a statutory
`license were $570.8 million in 2012, up 58.9% from $359.2 million in 2011. Note these figures
`include retail revenues for paid services, as well as wholesale revenues for services like ad-
`supported streaming that do not have a retail price. The number of digital subscribers to paid
`on—demand services also reached a new high at 3.4 million.
`
`Digital downloads, including albums, single tracks, videos, and kiosk sales were up 8.6% by
`value, from $2.6 billion in 2011 to $2.9 billion in 2012. Digital albums continued to grow, from
`$1.1 billion to $1.2 billion (12.5%) in 2012. Digital album volume of 116.7 million marked the
`second year in which the total exceeded 100 million. Digital albums accounted for 35% of all
`album sales by volume, up from 30% in 2011. Digital tracks also grew but at a slower pace, up
`in total value 6.7% from $1.5 billion in 2011 to $1.6 billion.
`
`After a more moderate decline in 2011, there was a significant decline in the physical market in
`2012. Overall value was down 16.5%, from $3.4 billion in 2011 to $2.8 billion in 2012. Physical
`shipment volumes were down less at 11.7%, indicating a lower average price for music sales in
`
`PAGE 000012
`
`

`
`physical formats. Vinyl though continued to grow, up 36% in value to $163 million in 2012,
`nearly equaling the total for ringtones, ringbacks, and other mobile products, but still only 2%
`of the overall market.
`
`The 2012 music industry revenue results show a mix of a continuation of trends from previous
`years, along with the emergence of new developments. Overall revenues were relatively
`steady at $7.1 billion. The mix of digitally distributed formats continued to increase, and the
`industry is now digital to a greater degree than ever before, with both new formats and
`permanent downloads contributing growth to a nearly 60% digital industry. The growth of
`access models show that formats where fans can listen from vast libraries rather than making
`individual purchases are gaining traction and making a significant contribution to the industry
`today.
`
`Please note that the RIAA presents the most up—to-date information available in its annual
`industry revenue reports and subscription-only online statistics database
`(htt
`: www.riaa.com ke statistics. h ?content se|ector=riaa-shi ment-database-lo -in).
`Based on additional market research, historical data has been updated for 2011 as well.
`
`For news media inquiries, please contact: Jonathan Lamy
`Cara Duckworth Weiblinger
`Liz Kennedy
`202/775-0101
`
`PAGE 000013