Shaping a new era in digital music.

The music industry is reinventing itself and its business models to meet new forms of consumer demand in an environment that has been revolutionised by new technology. In 2008 the digital music business internationally saw a sixth year of expansion, growing by an estimated 25 per cent to US$3.7 billion in trade value.

Digital platforms now account for around 20 per cent of recorded music sales, up from 15 per cent in 2007. Recorded music is at the forefront of the online and mobile revolution, generating more revenue in percentage terms through digital platforms than the newspaper, magazine and film industries combined.

Music consumption is becoming far more ubiquitous and revenue streams for music companies are expanding and diversifying.

A number of key themes underpin these changes. First is the unflagging consumer demand for music. In the US, research by NPD Group found that total music consumption (both licensed and unlicensed) increased by one third between 2003 and 2007. Nielsen SoundScan reports overall sales in the US hit an all time high in 2008, with music purchases across all formats totalling 1.5 billion, up 10.5 per cent.

“Music has never been more important to the consumer than today. Every year we are seeing increased use of music and what we are doing as music companies is finding new ways of playing into that interest,” says Thomas Hesse, president, global digital business, Sony Music Entertainment. ...

“ There is a tsunami of digital theft on the internet that extends across multiple content sectors.” - Rick Cotton,  NBC Universal

Visit IFPI Digital Music Report 2009 Download Page

You can download the entire report in PDF format.

Published by IFPI. January 2009.

CONTENTS
Introduction: Music has embraced the future with new business models
– Will governments secure a future for digital content?
Section 1: Shaping a new era in digital music
– Digital music: key facts and figures
Section 2: New business models for a changing environment
– The shift to ‘music access’
– More choice in music downloads
– Social networks and ad-supported services deliver
- New frontiers: brands, games and merchandising
– Public performance: getting fair value for music
– Digital music goes global – three countries in focus
Section 3: The core mission – investing in talent
– Cutting through the digital noise
– Adding value to artists
– Broadening services
– Marketing an album in the digital world
– A team sharing the same vision: The manager’s view
Section 4: Monetising music in an era of free – the role of ISPs and governments
– A future for local music and film? France and Spain in focus
– From concept to reality: governments start to move on ISP cooperation
Section 5: Education – the campaign for hearts and minds
– Young People, Music and the Internet
– Pro-music.org
– National campaigns
Section 6: Creative voices speak out
– When did intellectual property become free? – music managers speak out
– Commerce in the era of “free” – a common challenge for creative industries
Section 7: Pre-release piracy: industry steps-up action

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