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IFPI DIGITAL MUSIC REPORT 2009 DMR2009

IFPI DIGITAL MUSIC REPORT 2009 DMR2009

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Published by yiah
IFPI DIGITAL MUSIC REPORT 2009

p3
Introduction: Music has embraced the future with new business models
– Will governments secure a future for digital content?

p4

Section 1: Shaping a new era in digital music
– Digital music: key facts and figures

p8

Section 2: New business models for a changing environment
– The shift to ‘music access’
– More choice in music downloads
– Social networks and ad-supported services deliver
- New frontiers: brands, games and merchandising
– Public performance: getting fair value for music
– Digital music goes global – three countries in focus

p18

Section 3: The core mission – investing in talent
– Cutting through the digital noise
– Adding value to artists
– Broadening services
– Marketing an album in the digital world
– A team sharing the same vision: The manager’s view

p22

Section 4: Monetising music in an era of free – the role of ISPs and governments
– A future for local music and film? France and Spain in focus
– From concept to reality: governments start to move on ISP cooperation

p26

Section 5: Education – the campaign for hearts and minds
– Young People, Music and the Internet
– Pro-music.org
– National campaigns

p28

Section 6: Creative voices speak out
– When did intellectual property become free? – music managers speak out
– Commerce in the era of “free” – a common challenge for creative industries

p30

Section 7: Pre-release piracy: industry steps-up action

For further information please contact:
Adrian Strain or Alex Jacob at IFPI Communications
Tel: +44 (0)20 7878 7935
Email: press-office@ifpi.org
IFPI DIGITAL MUSIC REPORT 2009

p3
Introduction: Music has embraced the future with new business models
– Will governments secure a future for digital content?

p4

Section 1: Shaping a new era in digital music
– Digital music: key facts and figures

p8

Section 2: New business models for a changing environment
– The shift to ‘music access’
– More choice in music downloads
– Social networks and ad-supported services deliver
- New frontiers: brands, games and merchandising
– Public performance: getting fair value for music
– Digital music goes global – three countries in focus

p18

Section 3: The core mission – investing in talent
– Cutting through the digital noise
– Adding value to artists
– Broadening services
– Marketing an album in the digital world
– A team sharing the same vision: The manager’s view

p22

Section 4: Monetising music in an era of free – the role of ISPs and governments
– A future for local music and film? France and Spain in focus
– From concept to reality: governments start to move on ISP cooperation

p26

Section 5: Education – the campaign for hearts and minds
– Young People, Music and the Internet
– Pro-music.org
– National campaigns

p28

Section 6: Creative voices speak out
– When did intellectual property become free? – music managers speak out
– Commerce in the era of “free” – a common challenge for creative industries

p30

Section 7: Pre-release piracy: industry steps-up action

For further information please contact:
Adrian Strain or Alex Jacob at IFPI Communications
Tel: +44 (0)20 7878 7935
Email: press-office@ifpi.org

More info:

Published by: yiah on Jan 24, 2009
Copyright:Attribution Non-commercial

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09/30/2010

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DIGITAL MUSIC REPORT
2009
New BusiNess Models for a ChaNgiNg eNviroNMeNt.
 
ifPi digital MusiC rePort 20092
Cnn
 p3
n
Introduction: Music has embraced the future with new business models
– Will governments secure a uture or digital content?
 p4
n
Section 1: Shaping a new era in digital music
– Digital music: key acts and gures
p8
n
Section 2: New business models for a changing environment
– The shit to ‘music access’– More choice in music downloads– Social networks and ad-supported services deliver- New rontiers: brands, games and merchandising– Public perormance: getting air value or music– Digital music goes global – three countries in ocus
p18
n
Section 3: The core mission – investing in talent
– Cutting through the digital noise– Adding value to artists– Broadening services– Marketing an album in the digital world– A team sharing the same vision: The manager’s view
p22
n
Section 4: Monetising music in an era of free – the role of ISPs and governments
– A uture or local music and lm? France and Spain in ocus– From concept to reality: governments start to move on ISP cooperation
p26
n
Section 5: Education – the campaign for hearts and minds
– Young People, Music and the Internet– Pro-music.org– National campaigns
 p28
n
Section 6: Creative voices speak out
– When did intellectual property become ree? – music managers speak out– Commerce in the era o “ree” – a common challenge or creative industries
p30
 
n
 
Section 7: Pre-release piracy: industry steps-up action
 
iNtroduCtioN3
Mc  mbc    n bn m – nmn c     cnn?
B John Knnd, charmanand ch xcutv, ifPi.
The recorded music industry
is reinventingitsel and its business models. Our world in2009 looks undamentally dierent rom howit looked ve years ago. Record companieshave changed their whole approach to doingbusiness, reshaped their operations andresponded to the dramatic transormation inthe way music is distributed and consumed. The music business, like others, goesinto 2009 under the uncertain cloud o the global economic downturn. However,we are no stranger to the need toreorm, restructure and reinvent. Recordcompanies began this process manyyears ago. They are, I believe, as a result,better placed than many other sectors tomanage through more dicult times. There are some very positive stories inthis report about innovation and changeinside today’s music business. First, recordcompanies are building an economic uturebased not just on selling music but on“monetising” consumer access to it. Nokia’sComes With Music service, launched inOctober 2008, embodies that concept, withmusic ree and unlimited, bundled into thecost o a mobile phone. So do the newlink-ups between music companies and ISPs,rom Sky in the UK to TDC in Denmark andother European ISPs. These are just tasterso the enormous potential or licensing andgenerating commercial value rom music atevery point where the consumer is likely towant it. Meanwhile, as this report goes topress Apple announced it had signed dealswith leading record companies to oer eightmillion DRM-ree tracks at fexible price points.Increasingly our partners in these ventures,grappling with consumer demand problemso their own, are seeing the opportunity o adding music to the value o their oering.One impressive statistic in this report is theconrmation by Danish telecoms company TDC that its music service has produceda very signicant and measureable impactin retaining its broadband and mobilephone customers. That is a powerultestimony to the commercial value o music and it will strike a chord amongISPs and mobile operators elsewhere. The second dominant theme o this reportis the part that record companies – alsoreerred to in this report as “music” companiesto refect their expanding role – continue toplay in bringing to market the vast majorityo acts that music ans enjoy. The idea thatthe digital world somehow diminishes theimportance o music companies is simplya myth. On the contrary, in a world where amultitude o aspiring artists are competingor visibility among millions o consumers,the music company role can only becomemore important in the digital uture. Theinvestment, skills, services and creativeadvice that labels provide remain as corea unction o the music business as ever.Finally, there is a momentous debate goingon about the environment on which ourbusiness, and all the people working in it,depends. This is a debate about the uturenot just o music but o all creative industriesin a digital era where the very principle o getting rewarded or creative work is at risk. The vast growth o unlawul le-sharingquite simply threatens to put the wholemusic sector out o business. This reportrefects the wide consensus, rom majorand independent record companiesto managers and politicians, that anew approach is needed to protectcopyright – one that involves sharingresponsibility across the value chain. The debate has a huge way to go, but thecampaign or ISPs to act as proper partners inhelping protect intellectual property is makingprogress. Governments are beginning tounderstand the scale o the challenge o tryingto monetise content in an environment wherearound 95 per cent o all music is downloadedwithout payment to artists or producers.France is leading the drive towards ISPcooperation, understanding that it is the utureo French creative industries that are at stake. The UK and a growing number o countrieshave progressed along a similar route in 2008and momentum will build urther in 2009. This report tells the story o the musicbusiness as it is developing today. Music is theengine and heart o a large number o diversebusinesses and demand or the product isgrowing year-by-year. Music companies arechanging their business models and reningtheir skills in bringing artists to an ever morecomplex and sophisticated marketplace.Governments are beginning to acceptthat, in the debate over “ree content” andengaging ISPs in protecting intellectualproperty rights, doing nothing is not anoption i there is to be a uture or commercialdigital content. The big question or 2009 –with the ocus in particular on France andthe UK - is what real action will result andhow quick and how eective it will be inreversing the devaluation o recorded musicand helping return the industry to growth.
Governments are beginning toaccept that, in the debate over‘free content’ and engagingISPs in protecting intellectualproperty rights, ‘doing nothing’is not an option.”
 John Kennedy, Chairmanand Chief Executive of IFPI

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