Paolo Nutini's Sunny Side Up (No.6)

UK Music Sales Dip Further In 2010 But Digital Albums Hit The Mainstream. A third successive record year for singles and the emergence of a mainstream market for digital albums failed to halt a further overall decline in UK music sales in a market that remains heavily distorted by still-increasing levels of illegal downloading, new Official Charts Company data released today by the BPI confirmed.

Combined sales of digital and physical albums overall fell by 7.0% to 119.9m in 2010, with growth in digital sales failing to offset the decline in physical CD sales. Despite the encouraging digital albums sales of 21.0m, growing 30.6% on last year’s sales of 16.1m, the market for CD albums declined 12.4% to 98.5m from 112.5m in 2009.

The singles market recorded an all-time sales high of 161.8m, 5.9% up on 2009′s tally of 152.7m, reflecting the unparalleled choice and value on offer from the UK’s burgeoning digital music retail environment. 5.2m tracks were downloaded in the final week of 2010 – the first time weekly sales have surpassed 5m. Sales of digital single tracks represented 98.0% of overall singles sales, with CD singles only accounting for 1.9m sales, down on last year’s total of 2.5m.

Geoff Taylor, BPI Chief Executive, said, “2010 showed that the digital singles highs seen in the previous two years were no fluke – music fans continue to embrace the convenience, value and choice offered by legal download stores. The market for digital albums also went mainstream in 2010 with nearly a fifth of sales now coming from online services.

“Yet however encouraging it is to see the digital market grow, this must be seen against the bigger picture. Despite unprecedented demand for music, and strong innovation offering consumers new ways to access music online, legal downloads are unable to offset the decline in CD sales because they are dwarfed by illegal competition.

“We will continue to do everything we can to promote the legal market, but meaningful action to tackle illegal downloading remains absolutely critical if we are to stabilise British music sales, let alone return to growth. Without it, investment in new digital services and in British musical talent will begin to dry up.”

Tony Wadsworth, BPI Chairman, added, “Consumer choice for recorded music has never been greater – both in depth of catalogue and the many ways to buy it. It is now crucial that action to stem illegal downloading, incentivising continued investment in this popular art form, is implemented decisively and urgently.”

It was a solid year for British artists in the 2010 album charts. Take That’s Progress was crowned overall year-end album chart champion, selling more than 1.8m copies during 2010. It was boosted in part by first week sales of almost 520,000, making it the fastest-selling album of this millennium.

Including Take That, The Official Charts Company end-of-year artist album Top 10 boasted five placings from new and established British talent, including Plan B’s The Defamation of Strickland Banks (No.5), Paolo Nutini’s Sunny Side Up (No.6), Florence & The Machine’s Lungs (No.8) and Mumford & Sons’ Sigh No More (No.10).

While Pop and Urban titles dominated the bestsellers list, there were also big successes for Classical artist André Rieu – who had two albums in the year-end Top 30 – and Michael Bublé, whose Crazy Love (classified as MOR / Easy) was the second-biggest selling UK album overall.

Eminem featuring Rihanna’s Love The Way You Lie sold 854,000 copies to become the UK’s No.1 single of 2010, narrowly seeing off a late challenge from X-Factor winner Matt Cardle’s single When We Collide which ended 2010 as the second biggest-selling single. Tinie Tempah also featured in the year-end Top 10 with his breakout hit Pass Out.

UK record companies and retailers worked hard during 2010 to make CDs available to consumers in record numbers of outlets on the high street. The Entertainment Retailers Association (ERA) confirmed that over 6,600 stores stocked CDs in the run up to Christmas, compared to just over 4,600 at the beginning of 2010 – around 15% more than the 5,750 in 1999, music’s previous boom year.