Digital delivery of music . caught up with physical formats like CDs as a money stream for . the first time last year, the trade association IFPI said on . Tuesday. It came, however, as overall global sales of $14.97 billion . fell marginally from 2013. The report also named the year's top-selling album - the 'Frozen' soundtrack, which sold 10 million copies, while Pharrell Williams' 'Happy' was the top single, selling 13.9 million copies. Taylor Swift famously removed her music from Spotify. Digital formats have now caught up with physical sales of music for the first time. Piracy and free Internet sites remain a huge problem for anindustry still reeling from the impact of turning music intodigital form, which encouraged copying, bootlegs and free musicsites, and led to a collapse in sales from $40 billion in 1999. IFPI, the International Federation of the Phonographic . Industry, said in an annual report, that while revenues were . down 0.4 percent in 2014 from the previous year, digital . formats, including streaming and downloads, had finally caught . up with physical formats, with each accounting for about 46 . percent of the market. The vinyl format has had a renaissance and now accounts for 2 percent of revenues. Performance rights and film and related . revenues made up the balance. 'We have overall a positive picture, with the biggest . market, the U.S., growing and the third biggest market in the . world, Germany, growing as well,' Edgar Berger, chairman and . CEO international of Sony Music Entertainment, said at a news . conference. 'If we keep the current trajectory the industry will . inevitably grow,' he said, adding his view that paid . subscriptions to streaming services 'will be the predominant . performer'. But the IFPI also noted some dark clouds ahead for the . industry, including the impact of free delivery of music over . Internet sites such as YouTube and dailymotion.com, and the . desire of Chinese consumers to get their music for free. The industry group said it was pushing for legal changes to . be made in Europe, and eventually elsewhere, so that YouTube, . dailymotion and others could no longer contend they are 'safe . harbours', immune from copyright violation because users post . music and other content themselves. Jay-Z and a host of celebrities recently launched Tidal in a bid to make more money from streaming services . 'Companies that play the role of distributing, monetising, . promoting don't belong in the 'safe harbours',' IFPI chief . executive Frances Moore said. She noted that streaming sites such as Spotify and Deezer . which pay the industry for music rights had contributed some . $1.6 billion in revenues on the basis of having about 140 . million users while the free Internet sites, with a billion . users, paid something over $641 million. Berger said there was a 'a piracy issue that needs to be . fought in China', adding without piracy instead of ranking in . 19th place globally for music revenues, it would be in the top . five. Sorry we are not currently accepting comments on this article.
Digital delivery of music caught up with physical formats like CDs . Overall global sales of $14.97 billion fell marginally from 2013 . Massive piracy problems in China one of biggest problems facing industry . Vinyl sales now account for 2% of revenues .