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A year-end report by Nielsen SoundScanhttp://www.soundscan.com">SoundScan;, which tracks retail activity, states that compact disc sales through December 22, 2002, were off 9.3% compared to the same period the previous year, with 624.2 million units sold compared to 688.2 sold in 2001. Of all recorded music sold, 94% of it was on CD, the remainder on cassette tape and vinyl records. An insignificant amount of music was sold as legitimate downloads from industry-sponsored music sites. SoundScan did not expect the last week of December to impact the year's total.

Is the music industry in the midst of a turnaround?

Retail sales of recorded music in the United Kingdom sagged by an unprecedented 13% in the first three months of 2003, according to figures released May 14 by the British Phonographic Industry (BPI). British music fans spent £216 million ($351 million) in the first quarter of this year, compared to £249 million ($404.6 million) in the same period a year ago. In unit sales, albums in the UK declined only 4.8% to 44 million, but prices dropped 9.4%. UK album sales totaled £200 million ($324.9 million); singles were off 42%, accounting for only £16.2 million ($26.3 million).

Is there a future for high-resolution audio? Will the music industry survive as a packaged-goods business? The answer to both of these questions is "Yes, probably . . ." if the DualDisc follows test market indications and become next year's must-have entertainment format.

BMG and SunnCommhttp://www.sunncomm.com">SunnComm; Technologies revealed last week that they have entered into a "strategic worldwide" licensing agreement and revenue deal to add restriction technology to CDs in an effort to reduce piracy and the unauthorized duplication of music. The companies report that the agreement will enable the use of SunnComm's newest proprietary CD restriction system, known as MediaMax CD-3 Technology, on BMG discs.

Media conglomerates have long hedged their bets by consulting demographics experts and marketing gurus. Now, music executives have real science to bolster their sometimes unreliable instincts about what will succeed and what will fail. It's an audio analysis program called Hit Song Science (HSS).

More European music lovers will soon be able to enjoy the offerings of Music Choice, a leading provider of audio and data services. Zug, Switzerland-based The">http://www.fantastic.com/">The Fantastic Corporation announced an agreement October 28 with Music Choice that will expand the musical options for computer-equipped music fans in Great Britain, Italy, Germany, Switzerland, and other countries.