Digital Music Industry sees Massive Growth
The only problem that has been bugging the music industry is illegal downloads. Would you believe that almost 95% of music was downloaded on the internet illegally? However the digital music industry saw an increase in its sales by over 25% with sales touching $3.7 billion across nations.
Online piracy has always been a case of concern for those in the music industry with figures touching new highs according to the department for Business, Enterprise and Regulatory Reform or BERR, which is a regulatory body that fights illegal file sharing among peers. Apparently, efforts by the recording industry, and government, such as DRM protected files, have not been enough to thwart digital pirates. Moreover, popular music download service iTunes, used for managing music on your Apple iPod nano, classic, touch etc, has decided to do away with DRM protection. Clearly, new and innovate steps must be taken to deal with online music piracy.
The government has come out with a new set of regulations that are formulated to replace existing laws to restrict internet service providers. Internet service providers are bound by legal codes of practice that ensure internet users are restrained from flouting laws.
Claims by the BPI, a voice of the British music industry claims a loss of over 180 million pounds in revenue from illegal downloads in 2008 alone. Last July saw a memorandum of understanding being signed that ensured that ISP mail out to 1000 subscribers every week over a three-month period. These subscribers have been found to engage in illegal file sharing on the internet. Though the ISP’s have sent out warning letters, they are opposed to any plans of disconnecting their customers. Internet Service providers feel that a workable business solution to tackle illegal music downloads needs to be worked out so that users stay clear of piracy and music rights owners slapping legal action against them. P2P file sharing of copyright material, which is strictly unauthorized, is an important issue that requires immediate action.
At this year’s Midem there was immense support for new digital models. Whether ad-funded or with support from ISPs 2009 will be the year in which the music industry fully accepts digital music giving it a variety of new revenue streams.
Steve Purdham
CEO - We7
http://www.we7.com