Music Makes The World Go 'Round...
March 22nd 2007 22:56
In January, this year, the IFPI published some astonishing numbers about the worlds' love of music...
IFPI Digital Music Report 2007
Digital music sales estimated to double to around US$2 billion in 2006
Single track downloads estimated up 89% at 795 million
Available tracks double to four million, via 500 online services in over 40 countries worldwide
Portable music players help drive digital music consumption; new revenue streams and business models emerge.
Lawsuits impact illegal file-sharing, but "gatekeeper" ISPs must act to curb digital piracy
Record labels have become digitally literate companies, selling an estimated US$2 billion worth of music online or through mobile phones in 2006 (trade revenues), almost doubling the market in the last year.
Digital sales now account for around 10% of the music market as record companies experiment and innovate with an array of business models and digital music products, involving hundreds of licensing partners.
Among new developments in 2006, the number of songs available online doubled to four million, thousands of albums were released across many digital formats and platforms, classical music saw a "digital dividend" and advertising-funded services became a revenue stream for record companies.
"The past year has seen iTunes forge strong marketing partnerships with major brands, such as Starbucks in the US and Coke in the UK and Germany, and with the addition of blockbuster movies and TV shows, Apple is continuing to raise the profile of legal downloading and the value proposition of the iTunes Store worldwide."Eddy Cue, Apple's Vice-President of iTunes
As an aside, Apple just sent me an email about their newest PC to Television package....
Continuing, a further look at some facts:
Digital music has not yet achieved the hoped for compensation for the decline in CD sales. Meanwhile, digital piracy and the devaluation of music content are a real threat to the emerging digital music business.
Research suggests legal actions against large-scale P2P uploaders - some 10,000 of which were announced in 18 countries in 2006 - have helped contain piracy, reducing the proportion of internet users frequently file-sharing in key European markets.
"The success of eMusic in Europe and around the world shows that consumers are eager for a digital music service that focuses on music beyond the commercial mainstream. By offering customers well-priced, expertly curated adventurous music that they can own in the universally compatible MP3 format, we've shown you can sell a lot of it. This combination has helped eMusic become the world's number two digital music service and sell more than 100 million downloads in three years."David Pakman, President and CEO, eMusic
The record industry is combining digital technology with its traditional skills of discovering and marketing music.
Digital is empowering the music consumer
Consumers are finding that digital technology is helping to change their purchasing habits. They are taking advantage of the unlimited 'shelf space' in online stores, buying recordings that would have long vanished from the shelves of even the largest offline stores.
Recent months have also seen digital music distribution channels diversify. A-la-carte download services, led by iTunes, remain the dominant digital format, but they compete in a mixed economy with subscription services, mobile mastertones and more recently new advertising-supported models and video licensing deals on sites like YouTube and MySpace.
Mobile music accounted for about half of global digital revenues in 2006, but the split between mobile and online varies sharply by country. In Japan around 90% of digital music sales are accounted for by mobile purchases.
2007 could prove to be a landmark year in the mobile music market, as handset makers such as Nokia and Sony Ericsson develop their music phone series. Meanwhile, Apple has announced the launch of the much anticipated iPhone.
"In this internet age, the consumer is using music content more than ever before - whether that's playlisting, podcasting, personalising, sharing, downloading or just simply enjoying it. The digital revolution has caused a complete change to the culture, operations and attitude of music companies everywhere. It hasn't been easy, and we must certainly continue to fight piracy in all its forms. But there can be no doubt that with even greater commitment to innovation, and a true focus on the consumer, digital distribution is becoming the best thing that ever happened to the music business and the music fan."Eric Nicoli, CEO, EMI Group
"We see the trend in the player market moving away from single purpose devices towards multipurpose, and more importantly, connected devices. This trend will enable hundreds of millions of people to have their music collections with them, as well as to download and enjoy digital music on their mobile device. Nokia's leadership in this area means we can offer a compelling mobile music experience combining devices, content and connectivity."Ed Averdieck, Managing Director, Nokia Music Service
Portable players are one of the major drivers of growth in the digital sector. New figures show that the proportion of portable player owners who source mainly from paid downloads is roughly the same as the proportion who source mainly from unauthorised P2P and free websites (14%). Yet there is still concern at the relatively low levels of digitally purchased music that is stored on devices.
Digital piracy is still a massive problem for the music industry and one of the major reasons that the surging legitimate digital market is not expected to make up the shortfall in the decline of the physical market in 2006.
IFPI Chairman and CEO John Kennedy said: "The record industry today has evolved into a digital thinking, digitally literate business. Revenues in 2006 doubled to about $2 billion and by 2010 we expect at least one quarter of all music sales worldwide to be digital. This is a market combining evolution and revolution, where the learning curve is changing direction on a regular basis.
"The chief winners in the rise of digital music are consumers. They have effectively been given access to 24-hour music stores with unlimited shelf space. They can consume music in new ways and formats - an iTunes download, a video on YouTube, a ringtone or a subscription library."
IFPI represents the recording industry worldwide, with a membership comprising some 1400 record companies in around 70 countries. IFPI's mission is to promote the value of recorded music, safeguard the rights of record producers and expand the commercial uses of recorded music in all markets where its members operate.
Well, the music brings us together, the copyrights are another story....
IFPI Digital Music Report 2007
Digital music sales estimated to double to around US$2 billion in 2006
Single track downloads estimated up 89% at 795 million
Available tracks double to four million, via 500 online services in over 40 countries worldwide
Portable music players help drive digital music consumption; new revenue streams and business models emerge.
Lawsuits impact illegal file-sharing, but "gatekeeper" ISPs must act to curb digital piracy
Record labels have become digitally literate companies, selling an estimated US$2 billion worth of music online or through mobile phones in 2006 (trade revenues), almost doubling the market in the last year.
Digital sales now account for around 10% of the music market as record companies experiment and innovate with an array of business models and digital music products, involving hundreds of licensing partners.
Among new developments in 2006, the number of songs available online doubled to four million, thousands of albums were released across many digital formats and platforms, classical music saw a "digital dividend" and advertising-funded services became a revenue stream for record companies.
"The past year has seen iTunes forge strong marketing partnerships with major brands, such as Starbucks in the US and Coke in the UK and Germany, and with the addition of blockbuster movies and TV shows, Apple is continuing to raise the profile of legal downloading and the value proposition of the iTunes Store worldwide."Eddy Cue, Apple's Vice-President of iTunes
As an aside, Apple just sent me an email about their newest PC to Television package....
Continuing, a further look at some facts:
Digital music has not yet achieved the hoped for compensation for the decline in CD sales. Meanwhile, digital piracy and the devaluation of music content are a real threat to the emerging digital music business.
Research suggests legal actions against large-scale P2P uploaders - some 10,000 of which were announced in 18 countries in 2006 - have helped contain piracy, reducing the proportion of internet users frequently file-sharing in key European markets.
"The success of eMusic in Europe and around the world shows that consumers are eager for a digital music service that focuses on music beyond the commercial mainstream. By offering customers well-priced, expertly curated adventurous music that they can own in the universally compatible MP3 format, we've shown you can sell a lot of it. This combination has helped eMusic become the world's number two digital music service and sell more than 100 million downloads in three years."David Pakman, President and CEO, eMusic
The record industry is combining digital technology with its traditional skills of discovering and marketing music.
Digital is empowering the music consumer
Consumers are finding that digital technology is helping to change their purchasing habits. They are taking advantage of the unlimited 'shelf space' in online stores, buying recordings that would have long vanished from the shelves of even the largest offline stores.
Recent months have also seen digital music distribution channels diversify. A-la-carte download services, led by iTunes, remain the dominant digital format, but they compete in a mixed economy with subscription services, mobile mastertones and more recently new advertising-supported models and video licensing deals on sites like YouTube and MySpace.
Mobile music accounted for about half of global digital revenues in 2006, but the split between mobile and online varies sharply by country. In Japan around 90% of digital music sales are accounted for by mobile purchases.
2007 could prove to be a landmark year in the mobile music market, as handset makers such as Nokia and Sony Ericsson develop their music phone series. Meanwhile, Apple has announced the launch of the much anticipated iPhone.
"In this internet age, the consumer is using music content more than ever before - whether that's playlisting, podcasting, personalising, sharing, downloading or just simply enjoying it. The digital revolution has caused a complete change to the culture, operations and attitude of music companies everywhere. It hasn't been easy, and we must certainly continue to fight piracy in all its forms. But there can be no doubt that with even greater commitment to innovation, and a true focus on the consumer, digital distribution is becoming the best thing that ever happened to the music business and the music fan."Eric Nicoli, CEO, EMI Group
"We see the trend in the player market moving away from single purpose devices towards multipurpose, and more importantly, connected devices. This trend will enable hundreds of millions of people to have their music collections with them, as well as to download and enjoy digital music on their mobile device. Nokia's leadership in this area means we can offer a compelling mobile music experience combining devices, content and connectivity."Ed Averdieck, Managing Director, Nokia Music Service
Portable players are one of the major drivers of growth in the digital sector. New figures show that the proportion of portable player owners who source mainly from paid downloads is roughly the same as the proportion who source mainly from unauthorised P2P and free websites (14%). Yet there is still concern at the relatively low levels of digitally purchased music that is stored on devices.
Digital piracy is still a massive problem for the music industry and one of the major reasons that the surging legitimate digital market is not expected to make up the shortfall in the decline of the physical market in 2006.
IFPI Chairman and CEO John Kennedy said: "The record industry today has evolved into a digital thinking, digitally literate business. Revenues in 2006 doubled to about $2 billion and by 2010 we expect at least one quarter of all music sales worldwide to be digital. This is a market combining evolution and revolution, where the learning curve is changing direction on a regular basis.
"The chief winners in the rise of digital music are consumers. They have effectively been given access to 24-hour music stores with unlimited shelf space. They can consume music in new ways and formats - an iTunes download, a video on YouTube, a ringtone or a subscription library."
IFPI represents the recording industry worldwide, with a membership comprising some 1400 record companies in around 70 countries. IFPI's mission is to promote the value of recorded music, safeguard the rights of record producers and expand the commercial uses of recorded music in all markets where its members operate.
Well, the music brings us together, the copyrights are another story....
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