Duffy may have taken the world by storm last year. Take That may have made a triumphant return and Coldplay may have proved the critics wrong, but none of these artists could halt the slide in music sales around the world.

According to figures which are due to be published this month, sales last year were the lowest for a quarter of a century.

In Britain retailers believe that sales figures will show a fall of up to 10 per cent, as worldwide industry revenues plunge to levels last seen in the first half of the 1980s.

Meanwhile, data from the United States, released yesterday, show that sales volumes fell 8.5 per cent, with digital downloads included. Pricing pressures mean that revenue is likely to be lower still.

Total UK music sales will have fallen to £1.33 billion, if the 10 per cent decline is confirmed. However, executives were hoping that Christmas success of Take That’s The Circus, and the single sales of Alexandra Burke’s Hallelujah would improve the picture, reflecting the fact that sales of the top albums are holding up.

A spokesman for Universal Music UK, the record company behind Amy Winehouse, said: “Ten years ago, an album just getting in the Top 20 would end up selling 75,000 copies. But today, it’s going to sell about 50,000 – and when the market is down like that, it makes finding the big hits more important. It is the middle of the market that is weakening.”

Last year, global sales fell to their lowest level since 1986, and this year’s continuing decline in the UK and US – two of the top three markets – will see the industry hit another low.

The drop in sales means that acts, who can take home 10 per cent of a record’s sale price, have to resort to other ways of making money, from tours or endorsements. Touring revenues grew by 13 per cent to $4 billion worldwide in the year to November 11, according to Billboard Boxscore, with Bon Jovi’s Lost Highway tour the biggest in the period, grossing $210 million. Girls Aloud were paid an estimated £1 million last year for appearing in an advertising campaign for a low calorie KitKat bar, Senses.

Five years ago, the total value of all music sold in the UK was £1.96 billion. The 32 per cent fall since has been prompted by the rise of piracy, consumers buying individual tracks digitally rather than whole albums, and, increasingly, steep deflation caused by supermarkets and online retailers selling flagship titles at a discount. Asda sold the CD The Circus for £7 – at a loss, say industry insiders – Amazon for £8.98 and HMV before Christmas for £8.99. Apple’s iTunes has made the default price for single downloads 79p. Ten years ago, new albums often cost close to £15, while CD singles could cost as much as £4.

This is what has caused much of the fall in sales value. Latest figures show that 124.6 million albums were sold last year, down 5.6 per cent, while single sales are up 35 per cent to 100.7 million thanks to the popularity of downloads. Taken together the overall market is down just over 2 per cent.

The handful of acts that have broken through are headed by Duffy, whose spring album Rockferry sold 1.68 million copies, slightly more than Amy Winehouse’s Back to Black sold in 2007. The Welsh solo artist, who is often compared to Dusty Springfield, was one of five acts to pass a million album sales in the year.

Martin Talbot, marketing director of the Offical Charts Company, the body which compiles the charts, said: “The big acts continue to sell in roughly similar volumes. Last year there were only four singers or bands that managed over a million album sales, one fewer than this year. Three singles sold over half a million this year, compared with two last year.”

The Circuswas the second fastest million seller in history, reaching the mark in 19 days, and the album sold 1.45 million units.

HOW THOSE MILLIONS OF RECORDINGS STACKED UP

UK Music Market

Singles sold: 100.6m +55.3%

Albums sold: 124.6 million -5.6%

Total market*: -2.2%

Album market share:

Universal (Vivendi) 33.9% (31.6%)

Sony 17.6% (18.1%)

EMI 14.3% (15.8%)

Warner Music 11% (10.5%)

Independents 23.2% (23.9%)

Source: industry estimates

Top album: Duffy - Rockferry

US Music Market

Digital singles: 1.07 billion +10.5%

Albums sold: 428.4 million -14%

Total market*: -8.5%

Source: Nielsen SoundScan

Album market share:

Universal 31.5% (31.9%)

Sony 25.3% (25%)

Warner 21.4% (20.3%)

EMI 9% (9.4%)

Independents: 12.9% (13.5%)

Source: Nielsen

Top album: Lil' Wayne (left) - Tha Carter III

* 10 singles = 1 album

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