New distribution channels for online music and video are beginning to have a significant impact on the music and video industries, reports In-Stat. Online sales of digital music represented 6% of the total worldwide music market in 2006, up from 4% in 2005, the high-tech market research firm says. By 2011, online sales of digital music will represent 26% of all music purchased worldwide.

"The Internet is now an essential channel for online music distribution; and social networking sites, such as YouTube and MySpace, are beginning to show great potential as new and legitimate channels for digital content consumption," says Stephanie Ethier, In-Stat analyst. "As a result, consumers are demanding access to digital content in more ways than ever."

Recent research by In-Stat found the following:

• In-Stat's latest primary research shows that 74% of respondents (primarily North Americans) downloaded music in 2006, up significantly from 48% in 2005.
• Digital piracy continues to represent the primary challenge to content owners and online service providers, particularly outside the US.
• In-Stat believes that the growth in mobile music will have important implications for the online music market.

The research, "Online Music and Video: New Distribution Channels Emerge", covers the market for online music and video distribution. For more information on this research or to purchase it online, please visit: http://email.in-stat.com/cgi-bin4/DM/y/e6QZ0HWMdu0K560DhtU0Ay