The Internet is now a key distribution channel for legitimate digital music sales; and, in 2005, online sales of digital music represented almost 5% of the total worldwide music market. This figure is up from virtually zero percent in 2003.

In-Stat's latest report, ?The Online Music Market: Downloaded Music Will Outpace Physical Media Bought Online in 2007? (#IN0602972CM), covers the growth of the online music market. It includes worldwide revenue forecasts for music downloads and physical media bought online.

An important addition to this report is a worldwide revenue forecast for full-length songs downloaded to mobile phones. Mobile music represents competition for both traditional CD sales, as well as digital singles and albums downloaded to a PC or portable audio player. Therefore, we can no longer exclude this growing opportunity when discussing the online music market.

Finally, the results of an In-Stat consumer survey on online music buying and listening habits are also presented.