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IFPI Digital Music Report 2011

IFPI Digital Music Report 2011

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Published by Nicolás Boettcher

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Published by: Nicolás Boettcher on Mar 09, 2011
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IFPI Digital MusicReport 2011
Music at the touch of a button
Artists’ VoicesDigital Music - Summary of StatisticsIntroduction: Digital music – 2011 is the Year WhenGovernments Can Turn the TideThe Shape of Digital Music in 2010ISP Responsibility and the Role for GovernmentContent ProtectionPiracy and the Other Creative IndustriesDigital Music Services WorldwideConsumers Drive New Business ModelsDigital Piracy - Facts and TrendsConsumer Education has a Key RoleThe Squeeze on the Smaller PlayersDigital Music Services in Prole
Frances MooreChief executive, IFPI
“Music at the touch of a button” is a ttingstrap line for this report. Music fans have neverhad such choice and ease of access tolicensed music. Around the world, legitimatemusic services are catering to the lifestyle,taste and modes of access preferred byconsumers. These four hundred servicesinclude download stores offering tracks andalbums, streaming services, free-to-user sites,internet radio, subscription models and onlinevideo channels.And the new offerings keep on coming.This was the year we “broke the seal” onsubscription services. Highlights in 2010included the advance of music subscriptionservices such as Spotify and Deezer, as wellas partnerships with ISPs, such as Telia inSweden and Eircom in Ireland.Music is leading the creative industries intothe digital age. We are forging the newmodels that aim to make digital music bothconsumer-friendly and commercially viablefor creators. New licensing models helpedtake the digital share of music industryrevenues to an estimated 29 per cent in2010. To put that in context, the lm and bookindustries’ equivalent shares are only one andtwo per cent respectively.Does this mean all is well with music in thedigital age? Regrettably not. The key statisticsof this report sum up the story of recent years– on one hand, spectacular growth in digitalrevenues, up more than 1000 per cent in sevenyears; but on the other hand, the loss of nearlyone-third of the value of the entire recordedmusic industry. While record companies areinnovating and licensing every viable formof music access for consumers, the musicindustry is still haemorrhaging revenue as aresult of digital piracy.This is a crisis affecting not just an industry –but artists, musicians, jobs, consumers, and thewider creative sector. New gures in this reportindicate piracy is hitting investment in newmusic on a global scale, with the sales volumeof best-selling debut titles falling precipitouslyin recent years. Meanwhile, large numbersof jobs are disappearing, and many moreare under threat. The rst comprehensivestudy of the impact of piracy on employment,published in March 2010, projects that morethan one million jobs will disappear from thecreative industries in Europe by 2015 if piracyis not addressed. It is no wonder that tradeunions are now speaking out.We are not just waiting for government. Themusic industry is stepping up to the task ofprotecting its content. Industry pressure inthe last year alone has led to the closure ofLimewire, the blocking of The Pirate Bay inItaly and Denmark, the removal of more thanseven million infringing links and growingsuccesses against pre-release leaks.We are also being responsible educators. IFPIthis year backed two international educationprojects aimed at schools. Many are callingfor better education of young people on thevalue of intellectual property in creativity andcommerce. We agree and are acting.Yet tackling digital piracy is ultimately a task forgovernments. Are they prepared to stand byand allow an internet where normal laws andvalues do not apply? There were encouragingsigns in 2010 that the tide of governmentopinion is turning.Many governments are now recognising theneed for proportionate and effective steps tocurb piracy. In the last year, France and SouthKorea implemented “graduated response”measures that will for the rst time engageISPs in reducing peer-to-peer infringement ontheir networks.Similar moves are underway in the UK, NewZealand and Malaysia. The European Unionis reviewing its enforcement legislation. Themomentum for a solution is building, and thatis grounds for optimism.As we enter 2011, digital piracy, and the lackof adequate legal tools to ght it, remainsthe biggest threat to the future of creativeindustries. Great new legitimate musicofferings exist all over the world, but theywill not survive if the market continues to bemassively rigged by piracy. “Music at the touchof a button” captures just how far we havecome in a few years in response to consumers.Yet we also need an internet guided bythe rule of law. This is the opportunity forgovernments to seize in 2011.
There were encouragingsigns in 2010 that thetide of governmentopinion is turning.

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