IRELAND’S music industry is facing its bleakest Christmas in living memory — and internet piracy is being blamed.

Record sales so far this year are down 16% on 2007, the fifth successive year of decline.

Album sales including downloads are down 10% on last year and, due to falling prices, are down 16% in value. CD album sales are down 13%, resulting in an 18% drop in monetary terms.

“We’re in serious decline,” said Dick Doyle of the Irish Recorded Music Association (IRMA). “The market is down about 40% [on 2003]. I don’t think it’s ever been this bad. I can’t remember how far back we’d have to go to find this.”

Year-to-date figures for the DVD market show it is more stable – down just 2% on the same period in 2007.

According to figures from Chart Track, which compiles the Irish top 50 singles and album charts for IRMA, downloads are up 62% but account for only a tiny share of the market.

Irish consumers still prefer to buy albums in the conventional manner, with fewer than 8% of copies downloaded. Doyle does not see the market recovering.

“It’s to do with illegal use. Until the internet is treated differently, until we sort out this whole Internet Service Provider (ISP) responsibility, we’re in trouble,” he said.

Doyle believes 19 out of every 20 songs downloaded are illegal. This is despite the fact that music has never been cheaper to download, as little as 99c a song. “There have been lay offs everywhere,” he said. “A lot of record companies would have cut 50% of their staff in the past couple of years.”

Last year, the music industry was also down in revenue by 10%-15% on 2006 and in volume terms by 9%-10%. The value of the singles market has also declined — down 8% on 2007 despite an overall increase of 18% in singles sold.

A case by IRMA against ISPs over illegal downloading is due to be heard in the High Court in January. Mark Crossingham, managing director of Universal Music Ireland, said combating illegal downloads is a huge problem. “It’s a tough one, trying to persuade people to pay for music when they’ve been used to getting it for free.

“The recession has made Christmas a lot later for us. We thought the last weekend in November, when people got paid, would be the start but it wasn’t great. People are waiting as late as possible to buy Christmas presents.”

He hopes new initiatives in 2009 such as Nokia Comes With Music, will boost the industry. Customers who buy a Nokia music-enabled phone will be able to download music for free to their handset. Record firms will get a cut of each phone sold. Sky is also launching a music subscription service.

Take That, currently number one in Ireland with their new album, are expected to be one of the biggest buys this Christmas. The Priests are at No 2, ahead of Leona Lewis’s relaunched album Spirit.

Since July 2006 the Irish charts include tracks from conventional CD sales, plus downloads from legitimate sites.

Times Recommends

• Please help: maimed children of war want their lives back
• Cabal seizes diamond riches to buy power
• White House gatecrashers got to the president