David Rose investigates the 'cost of free music' and how the digital era is changing the face of the music industry.
The Dilemma
Just a few clicks of the mouse and you can download almost any song immediately...Oh and you can pay for it if you like!
This is the dilemma the music industry has been faced with for the past ten years. Is it the responsibility of the government or internet service providers to stop illegal file sharing and downloads? Or should we continue to allow people to download for free whilst other law abiding citizens keep the record industry afloat?
But what is the cost of this era of free music? Jupiter Research estimates music piracy cost £180 million last year in the UK. This would mean a cumulative loss of £1.1 billion by 2012 if nothing is done to address the problem. According to estimations by IFPI, 95% of music downloaded worldwide last year was done illegally with over 40 billion files illegally file-shared.
Overall 16% of internet users in Europe regularly swap infringing music on file-sharing services, according to Jupiter Research. Yet research from EMR estimates that 72% of consumers would stop illegal file-sharing if told to do so by their ISP.
Recommended link:
Click here to see Record Producer Peter Waterman speaking about the music piracy problem on Channel Four.
“Some form of regulation is required as a chaotic free for all is never best in any society.””
Andy Burnham, Secretary of State, Department for Culture, Media & Sport
ISPs forced to limit downloaders!
Internet service providers are to be forced to limit and restrict activity of file sharers in the UK, with Ofcom regulating them.
The final part of the Digital Britain report has implemented ruling which will award Ofcom with the regulatory powers. Speaking at the “Music conference making online music pay,” Secretary of State, Department for Culture, Media & Sport, Andy Burnham said:
“I think now in 2009 the rest of the world finally understands what the music industry knew for years. Some form of regulation is required as a chaotic free for all is never best in any society.”
Record labels have been pushing for a move which forces ISP to cut off persistent offenders for more than 10 years, since the launch of Napster. But ISPs have argued that it is not their role to police the internet and cutting off customers isn't good for business.
Mr Burnham said: “You don’t go straight to a solution that cuts people off.” BPI Chief Executive, (The representative voice of the UK recorded music business) Geoff Taylor has suggested that ISPs could be compensated for converting file sharers to legal services to give them more incentive.
Meanwhile, member of the ISPA Council of Management, Clive Feather, believes it is not up to ISPs to police the internet, and is unconvinced about Ofcom’s suitability as a regulator for the ISPs. Mr Feather believes companies need to give the users what they want:
“In order for downloading to be legal, truthful, honest and make money then licensing has got to be easier."
It is one year since the government set out its commitment to reduce music file sharing by 70-80% within 3 years, a commitment which Mr Burnham stands by.
Click here to read Mr Taylor's commentary on the Digital Britain Report.
50 times harder for DJs
From “moshing” to Mozart
More people of all ages are now listening to classical music as the digital space is providing a non-intimidating environment for listeners.
Chaz Jenkins, Head of London Symphony Orchestra Live claims that in the past there has been too much emphasis on classifying music, and believes the internet has been a huge success for the classical music industry. He said:
“By creating a non-intimidating environment at home, it gives people the means to listen to and discover new music.
Very few fanatics only listen to one genre of music and about 95% of classical listeners are buying other genres too.”
Jamie Pendle, 25, Kenilworth, previously only listened to heavy metal, but was recently surprised to find he liked listening to classical music as well. He said:
“I find classical music quite relaxing, but it can be powerful like metal too. I didn’t really listen before because I didn’t think I’d like it. I think that the use of classical music in big films has also made me more interested.”
Virgin offer ISP download subscriptions
Virgin Media have announced an unlimited music download subscription service with Universal, set to be launched later this year.
The new service will allow UK Virgin broadband users to legally stream or download as many Universal songs as they want, for a fee.
Virgin Media's CEO, Neil Berkett, believes their new music service will be better than any currently offered online in terms of “convenience and value”. He said it will provide a “fair deal for both consumers and artists”.
Virgin Media customer Simon Barrs, 30, Coventry, is excited about the new service:
“This is great for customers like me; I was hoping a deal like this would happen soon.”
Negotiations between Virgin Media and other UK major and independent music labels and publishers are currently taking place, to offer customers a wider choice of music.
Session musician and music fan, Michael Gunn, 25, London, thinks this will be a positive step for the music industry:
“Hopefully others ISPs will follow suite. It will be great for fans and the artists!”
Links
Click here to listen to Radio One
Where can I get music online?
Complete services:Streaming:
Subscription download to own:
Ad-funded/ad-supported:
Bundled:
Mobile downloads:
Redemption:
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