The South African recorded music industry grew by 2.4% in value last year, with international artists' recordings and the DVD format contributing to the market's slight rise.

Total physical sales rose in value to R1.020 billion ($129.5 million) in 2007 from R996 million ($126 million) in 2006, according to new statistics released by the Recording Industry of South Africa (RiSA).

The sale of international artist CDs rose to R578 million ($73 million) from R540 million ($68 million).

RiSA statistics also reveal that the previously-buoyant domestic repertoire market took a knock in 2007, falling to R442 million ($56 million) from R456 million ($57 million).

Sony BMG South Africa claimed the biggest chunk of international market share, with 29.1% followed closely by Universal with 28.3%. EMI captured the biggest local share with 22.4%, followed by Select -- an independent that operates predominantly in the Afrikaans market -- which held strong at 13.5%. Gospel, Urban/Afro-Pop and Afrikaans releases dominated the domestic sector.

The DVD market also saw some growth. Sales of international music DVDs grew to 1.2 million units, up from 1 million, while domestic artists contributed to 1.1 million DVD unit sales, a similar volume to 2006.

RiSA's executives cautioned that the growth in the market was being offset by rapidly growing operating costs, which the trade body estimates rose by 7% and 10% in the past year.

RiSA does not yet collect or publish digital music sales statistics. However RiSA chairperson Ivor Haarburger, CEO Of Warner Music Gallo Africa, pointed to digital piracy as one of the major threats facing the domestic industry in the coming year.