The International Federation of the Phonographic Industry (IFPI) released its 2007 figures on global digital sales.  Although sales of digital music increased by 40 percent, the IFPI claims that the increase does not offset the losses sustained from piracy.

From the AP:

Record companies’ revenue from digital music sales rose 40 percent to $2.9 billion over the past year, but the growth is still failing to cover losses from collapse of international CD sales, the music industry’s global trade body said Thursday.

The International Federation of the Phonographic Industry, or IFPI, said the increase in legitimate music sales did not come close to offsetting the billions of dollars being lost to music piracy, with illegal downloads outnumbering the number of tracks sold by a factor of 20-to-1.

Music piracy is a $4.5 billion market worldwide.