IFPI: Digital Music Sales Up, ISP Help Needed
'Governments Can Turn The Tide Against Piracy In 2011'
January 26, 2011 at 10:40 AM (PT)
In a report on digital music sales, the IFPI, the international version of the RIAA, report that digital sales increased 6% to $4.6 billion, accounting for 29 % of record companies' trade revenues in 2010. What's more, the IFPI asserted that "Governments can turn the tide against piracy in 2011" by getting the ISPs on board to restrict Net access to illegal downloaders.
Evidence of progress on this front were:
* First actions by ISPs to stop mass illegal file-sharing announced in FRANCE, IRELAND and SOUTH KOREA in 2010
Digital piracy remains the biggest threat to the future of creative industries. Great new legitimate music offerings operate in a market that is rigged by piracy, and they will not survive if action is not taken
* Progress is expected in U.K., NEW ZEALAND, the EU and MALAYSIA in 2011.
The report expressed confidence of further sales growth because " consumer choice for accessing music via digital channels continued to grow in 2010. New easy-to-use subscription models, such as SPOTIFY, DEEZER and VODAFONE, expanded to complement the hundreds of download services already available to fans. Record companies have also partnered with ISPs and mobile operators to offer music services in IRELAND, TAIWAN, ITALY, SOUTH KOREA, DENMARK, NORWAY and SWEDEN.
Nevertheless, digital piracy remains an enormous problem, which the IFPI believes requires government intervention. "Many governments are now recognizing the need for proportionate and effective steps to curb piracy," IFPI CEO FRANCES MOORE said. "In the last year, FRANCE and SOUTH KOREA implemented systems of warnings and deterrent sanctions that will for the first time engage ISPs in reducing peer-to-peer infringement on their networks.
"Similar moves are underway in the UK, NEW ZEALAND and MALAYSIA. The EUROPEAN UNION is reviewing its enforcement legislation. The momentum for a solution is building, and that is grounds for optimism.
"As we enter 2011, digital piracy, and the lack of adequate legal tools to fight it, remains the biggest threat to the future of creative industries. Great new legitimate music offerings exist all over the world, offering consumers a wide range of ways to access music. Yet they operate in a market that is rigged by piracy, and they will not survive if action is not taken to address this fundamental problem. This is the challenge and the opportunity for governments to seize in 2011."
You can access the entire report here.