Here is yet another piece of evidence that indicates that Indians are emerging as among the most tech-savvy people in the world. India has emerged as the first country in the world where digital music sales have outpaced physical music sales.
Globally, the same will be replicated only in 2009, while in the Asia-Pacific region, it is expected to happen later this year, according to  figures compiled by Soundbuzz, reportedly Asia’s largest online and mobile music company. Digital music, comprising downloads on computers and mobile phones, overtook physical music in business volumes in the first calendar quarter of this year.
Rs 1,026 crore biz
The digital sector realised business worth Rs 1,026 crore as against Rs 756 crore, realised by the physical music sector. Globally, digital music sales were worth Rs 42,300 crore as against Rs 1,31,940 crore of physical music, an independent analysis of industry figures by Soundbuzz has found out.
By 2009, Indian consumers will purchase almost nine times more mobile music than any other format, taking the figures in money terms for digital music to Rs 3,600 crore as against just Rs 500 crore of physical music, in CD or audio cassette format.
In the same year, global music business in digital format is expected to be worth Rs 1,24,920 crore, while physical format music business is projected to go down to Rs 81,405 crore.
“The crossover has happened purely thanks to the stupendous growth of mobile telephony in the country”, acknowledges Soundbuzz’s India general manager Mandar Thakur. “The digital music sales include both online and mobile music downloads, but mobile downloads are far more than online downloads,” he says. Most of the downloads are happening in mono ring tones and ring back tone downloads.
“The growth in mono ring tone downloads is happening because the growth of mobile telephony now is happening in C and D-category towns, where the average purchasing power of the customer is on the lower side.