Showing posts with label ifpi. Show all posts
Showing posts with label ifpi. Show all posts

Wednesday, March 18, 2009

Irish ISPs Say No To Three Strikes

The Irish internet service providers (ISPs) are reported by outlaw.com as having rejected claims that they are responsible for users' copyright infringement. The ISP Association of Ireland claim that there is no legal basis for the music industry's demands, fronted by the International Federation of the Phonographic Industries (IFPI) that they disconnect copyright-infringing internet users.

The IFPI had pursued Ireland's biggest ISP, Eircom, through the courts in relation to users' alleged copyright infringement. Some days into the court case Eircom agreed to the three strikes deal. Then Ireland's IFPI-affiliated music industry lobby group, the Irish Recorded Music Association (IRMA), wrote to other ISPs demanding that they block a list of websites it believes facilitate piracy.

However the ISP Association of Ireland (ISPAI) has said that its members will not submit to IRMA's demands and that its activities are protected by law.Although, Eircom is a member of the ISPAI, it will comply with IRMA's demands.
So as usual it’s as clear as mud!

Saturday, January 17, 2009

Plan Now - The Consumer Clearly Wants Free Digital Content

According to a report by International Federation of the Phonographic Industry (IFPI), which represents 1,400 music companies in 72 countries, 95% of all today’s music downloads are illegal. This is despite the growth of legally available tracks, the removal of DRM and the wide availability of services to buy from.

Music fans in the UK downloaded 110 million single tracks in 2008 and bought 10.3 million digital albums - accounting for 7.7% of the market.

Although legal downloads have increased by some 25% in the last year to 1.4 billion the worldwide market has effectively shrunk by 7% and the gap between falling CD sales and increased downloads is not closing sufficient to avoid big questions over where its all going. The IFPI, estimated more than 40 billion music files were illegally shared in 2008.

Free content is now a real threat to all media. Music has shown that not engaging with the issue but trying to fight and restrict it in every way has not worked. Going after the ISPs is not the answer, it's just another potential battle and one that its hard to see the music producers winning.

We firmly believe that we should now accept the concept of 'music for free' at the point of consumption, is not a debate, but a goal and that this need to be paid for by another model. Merely battling forward on the belief that eventually it will turn the corner and consumers will return to buying music is just dumb!

What does this mean to other digital media formats, such as film, games, newsprint and books? It’s a fairly safe bet that the consumer will not view these very differently and although the restrictions may work today, they will be broken tomorrow. The Booktrade is still at the beginning of its digital journey but the sheer volume and diversity of its content and number of rights owners means that it probably faces the prospect of being divided in its approach and offer. Some would suggest that we have clearly already seen the warning signs.

Wednesday, June 18, 2008

Music Continues to Reposition and Change

Today’s Times article 'Music sales fall to their lowest level in over twenty years' must send yet another shiver down the backs of those who run the major music production companies. Worldwide music sales are now at their lowest level since 1985. The figures released by IFPI yesterday stated that the equivalent of 1.86 billion albums were sold last year (for comparison they counted ten individual song sales as being the equivalent of one album).

So what does this tell us about the state of what we all know is an industry going through radical change where the once dominant record producers are being squeezed from both ends of the value chain the artists and the consumer?
The sales peaked in 1996 at 3.4 billion so have effectively halved in just over a decade. 1996 ironically was the year when the Internet started to change from being the old dirt track to the superhighway and companies such as Amazon were becoming established.

Today CD sales are not only collapsing in terms of volume but have finally also collapsed in terms of value with prices now being significantly discounted down from those heady days when some would have said that the industry fixed high prices in the UK. This double collapse is further compounded by digital sales continuing to fall far short of bridging the gap. Production company revenues in the UK are 13% down and on last year. On one hand UK CD sales fell by 16% to £871 million but although digital sales increased 28% this only amounted to £132.2 million. Today the consumer wants to make their own compilations and not pay for the extra tracks they don’t want. The charts are revivant to a few but not to the many and social sharing as it always has been is a given.

The IFPI is calling for the usual suspect to be culled, fined and thrown in jail claiming that between 50 and 80% of ISP traffic was accounted for by illegally swapped content. To us a 30% variable would appear a wide margin of error and would serious raise the question of whether they actually know the facts or whether a lot is based on assumptions and the fist waving we are used to from the production companies.

Music companies and lobbyists are trying to reach agreement with ISPs but this is not the problem. The issue is a value chain shift that is disintermediating one of the previously strongest links in the music chain. It isn’t about copyright infringement its about change. Change in how artists are taking control of their revenue streams, branding and merchandising. Change in how, when and what the consumer wants and is willing to pay. Change in how the artist and consumer are linked and the relationship.

The music business is still huge and influential. It will survive and make money going forward but it will change and have to change. Some look to other media sectors such as book publishing and ask what are the lessons we can learn from the music industry – and there are many. We would say that the one thing that is certain in any value chain is that once you stop adding perceived value then your place is in question and that no one has a divine right to remain in perpetuity.