Album sales in the UK have reached an all-time high - but music industry profits are down.

CD price wars and a continuing massive slump in singles sales have left record sales values down 4.1 per cent in the year to June, according to new data from the British Phonographic Industry.

During that period the album market swelled to 228.3 million units, the largest ever recorded and almost 3 per cent up on the previous year.

The biggest sellers of the past few months have included Justin Timberlake's Justified, Elephant by White Stripes and the Now! 54 compilation.

The album market has now remained above 200 million since 1999.

The BPI said today: "It is clear that cheap retail prices on offer to the consumer combined with strong new release titles are sustaining the UK album market at a high level."

But while sales increased from June 2002 to June 2003, profits for albums actually dipped by 2 per cent, due to many music retailers offering huge discounts and almost permanent sales.

The average price for an album is now £9.79, the cheapest it has ever been in the UK.

Monday August 18, 2003