The latest issue of Music & Copyright is now available for subscribers to download. Here are some of the highlights.
Pay-monthly bundle opportunities for recorded music are expanding
Offering customers who buy one product a discount on another is a practice the retail sector has engaged in for decades. “Buy one, get one free” and “three for the price of two” are just two retail discounting terms most people are familiar with. Bricks-and-mortar sellers of music and other entertainment products have for a long time happily grouped together hard formats into multimedia bundles in an effort to boost sales, and this practice has been a central feature of most online retail sites. More recently, the rise of the fixed regular fee for access to music has given streaming services and communications providers, both of which charge for their services on a monthly basis, the opportunity to combine their offerings. However, consumers also pay monthly for many other financial necessities and household utilities. Although there might seem to be little connection between the likes of Deezer and Spotify and energy or water suppliers, the willingness of some services and suppliers to experiment suggests that the distribution of recorded music is set to experience another major evolution.
French recorded-music sales have an encouraging year, but medium-term concerns remain
French music trade association SNEP has reported a rise in trade earnings from recorded-music sales. Total trade income increased year-on-year, marking only the second time in the last 10 years that sales registered an uptick. Subscriptions and ad-supported streaming were the two growth sectors, with sales of single track and album downloads down sharply. The overall performance was buoyed by a modest dip in trade earnings from physical format sales, with digital more than offsetting the physical losses. However, physical formats still accounted for the majority of trade revenue, and there remains concerns over the medium-term prospects for the French recorded-music sector should the rate of decline in CD album sales begin to accelerate.
Graduated response and litigation not enough in the ongoing battle against music piracy
Graduated-response mechanisms appeared to have had their day, as evidenced by the recent closure of a number of programs, most notably in the US. However, content owners and ISPs have now joined forces to roll out a warning-notice project in the UK, with a view to steering primarily young demographics away from illegal file-sharing websites and toward legitimate sources. The efficacy of graduated response in deterring music piracy – as well as in promoting the use of rights-protected content – has always been contested. As pirates turn to innovative ways of illicitly disseminating music, the industry needs to come up with new responses to the threat.
India country report
In addition to the usual set of music industry statistics and news briefs, the latest issue of Music & Copyright includes a detailed India music industry report. India’s music industry is regularly grouped together with those of a small number of countries that for years have underperformed but that offer great potential to become major markets of the future. With the country accounting for almost one-fifth of the world’s population and with an economy that is growing steadily, tapping into what is a market ripe for exploitation is high on the recorded-music industry’s list of priorities. However, India has yet to live up to the promise of its “emerging” label, with favorable results one year followed by poor sales the next. Arguably the biggest problem for the country is piracy. Retailers have always struggled to compete in a market flooded with illegal copies. Moreover, rising internet penetration has brought with it increased access to unauthorized music distribution sites and services. There is some hope that streaming will be the way out of the piracy problem, but the road to greater sales and meaningful returns is likely to be a long one.
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