Latest Articles

Alexander McCall-Smith Engages Web 2.0

The Daily Telegraph is in the middle of a 20-week serialisation of an online book created by author Alexander McCall-Smith, his first such project. New Media Knowledge caught up with the organisers to discuss ‘Corduroy Mansions’.

more

Business Brief: Video Advertising Looks to Future

Google has announced it will incentivise advertisers on its video properties as well as launching research programmes into how Web users consume Internet video material. New Media Knowledge spoke to a number of industry players to gauge their views on where the video advertising market is going.

more

‘Virtual Home’ for Ex-Pats in London Established

A social network aimed at providing information for ex-pats living in London has been established. New Media Knowledge met the site’s co-founder to find out more.

more

• Rough Guide to: Social Media and the Law
• Record Visits for UK Blog Sites
• Clearing Congestion
• Rough Guide to: Pay-Per-Click Advertising
• Opinion: What Happens to Newspapers?
• LinkedIn Adds Business Applications
• What Happens to Newspapers?

Related Articles

• Second Life in Action

  To help him reach his wide fan base, singer-songwriter Luc Floreani recently turned to online 'virtual' world, Second Life, to perform. He spoke to New Media Knowledge about his experience. more

• Virgin Partners BPI in Anti-Piracy Initiative

  Virgin Media will write to thousands of customers informing them of that they are breaking the law if they download unlicensed content. Customer accounts which appear to have been used to distribute music in breach of copyright will receive separate letters from Virgin Media and the BPI. However, both emphasised that customer names and addresses would not be disclosed to the BPI and that the campaign is educational not aggressive. more

• See YouTube in Court

  The phenomenon of user generated content and social networking sites still sits awkwardly with legislation. As the Web 2.0 companies continue to work out how to best profit from their huge reach, there is still dispute as to who owns the content and data and what they are allowed to do with it. more

• Music on a Stick

  American progressive rock band, Mars Volta is the latest music act to give its fans more choice when it comes to how they consume their music. more

• Sony Drops DRM

  Sony BMG Music Entertainment has announced that it will now offer its songs without electronic copyright protection or digital rights management (DRM). more

Original Pirate Material

British Music Rights has revealed that the average youth has around 900 illegally downloaded tracks on their MP3 player. Tim Hoang reports on how the music industry continues to struggle with the Web.

British Music Rights has revealed that the average youth has around 900 illegally downloaded tracks on their MP3 player. Tim Hoang reports on how the music industry continues to struggle with the Web.

The issue of illegally downloaded content is one that continues to highlight how the mass media is arguably still uncomfortable with the presence of the Internet. While copying music is not a new dilemma for the music industry, the Internet has made it much easier of consumers to illegally share and download content. A new survey has shown that music downloads obtained illegally is still rife, especially among younger listeners.

According to the research, which was conducted by the University of Hertfordshire and commissioned by record industry artist and publisher group, British Music Rights (BMR), the average young person's MP3 player contains an average of 1,770 tracks of which, 842 are illegally copied songs.

The survey of 1,200 participants also revealed that nearly two-thirds (63 per cent) of those between the ages of 14 and 24 downloaded music tracks illegally with 53 tracks downloaded on average per month.

The majority (58 per cent) admitted to copying music from friends' hard drives while 95 per cent of respondents admitted to having copied music in some way. 42 per cent admitted to uploading music onto file-sharing networks.

Light at the end of the tunnel

However, the survey was not all doom and gloom for the music industry. Evidence suggests that consumers would want a legal file sharing service - 80 per cent claimed that they would even pay for the content.

The survey is part of a campaign spearheaded by the BMR which seeks to raise the awareness of legal download services and make illegal downloading less attractive. The organisation is working with ISPs to push for legal downloading sites to be added to broadband packages. 

Difficult to enforce

 

Simon Levine, joint global head of the technology, media and commercial group at law firm, DLA Piper does not believe that putting pressure on ISPs will reduce the amount of legal content.

"The spread of illegal downloading dangerously undermines the entertainment industries and dilutes the value of copyright law," said Levine.

"Placing the full weight of moral responsibility, technological investment and legal liability on the ISPs' shoulders would be unworkable. Not all aspects of file-sharing are illegal and distinguishing the legitimate from the malicious will not be easy. This sort of approach would turn them from mere conduits of content into active arbitrators, opening a can of worms us digital lawyers may never be able to close.

"The effect of illegal downloads on the music industry - sales are at their lowest in ten years - is there for all to see. What is equally clear however is that wholesale sanctions are not the answer. Understanding the motives of illegal downloaders and developing a framework for policing and legislation is vital. Only when the industry is acting unilaterally and accepts shared responsibility for illegally downloaded music, will it have any hope of enduring against it," he continued.

Pirates increase reach

However, there are some artists who see downloadable content as the perfect channel for reaching audiences. Speaking to NMK, Rob Tissera, international house producer and DJ highlighted how piracy has helped get his music out.

"Downloading music is so important to me as a producer and as a DJ. I don't know how we survived without it. I wish we could stop piracy but unfortunately it's now a way of life; so we have to accept it and use it to our advantage. More people now get to hear my music and it's much easier for me to promote myself as an artist. I've just mixed the Judgement Sundays album for Ministry of Sound and was able to send it to the label and get all the tracks for it without leaving the studio. To me that's priceless," he said.

Tim Davidson, an international house producer and DJ also underlines how digital media has increased the reach of his music.

"It's very difficult to gauge the exact impact of piracy as you're never really sure just how widespread it is. Whenever I play overseas I'm always amazed how knowledgeable crowds are about my music but have put this is down to the proliferation of digital sales rather than piracy. Speaking to DJs and promoters in Eastern Europe and South America, for example, you come to realise just how much more difficult and expensive it is for them to get new upfront music delivered to them in vinyl format as much of the distribution is traditionally centred in Europe.

"The expansion of digital music has allowed them instant access to international producers and a wider range of labels and choice. Obviously, the availability of free music is even more tempting and is a real problem in certain countries and allows music to be disseminated widely without the need for expensive publicity campaigns. Often bookings are based on the DJs/promoters playing your music a lot and then wanting to bring you over in person so, if pirated music is more easily available this could help to some extent," said Tissera.

Fergal Sharkey, chief executive of BMR admitted that illegally downloaded content continues to be a huge headache for the music industry but predicts a positive outcome for all those involved.

"I was one of those people who went around the back of the bike shed with songs I had taped off the radio the night before. But this totally dwarfs that, and anything we expected," said Sharkey.

"The positive message is that 80 per cent of downloaders said they would pay for a legal subscription-based service, and they told us they would be willing to pay more than a few pounds a month," he continued.

Legal sites available

One company hoping to capitalise on this need for legal downloadable music is Amie Street. The site has a taken a free-market approach to legal downloading where the community of users decide the price of tracks depending on how popular they are. Songs start from free and can rise to 98 cents with 70 per cent of profits going directly to the artist.

"So, as far as the future is concerned, we will continue to see the fallout from the outmoded 20th century precedent, with people accessing music in a number of ways. Illegal file sharing will continue, notwithstanding, people will buy music if it is social, fun, supports the artists, and gives them freedom to discover and engage," said Zane Groshelle of Amie Street.

Education is paramount

According to Andrew Booth, creative industries partner at Manchester law firm, turner parkinson LLP, education will be vital in any campaign hoping to reduce the amount of illegally downloaded content.

"One of the main problems surrounding the music industry is that the majority of people do not understand what is right or wrong when it comes to downloading from the web.

"The Internet has been a real headache for record companies, mainly because the industry has failed to react as fast the technology around it. The sheer scale of the number of unlicensed recordings occurring as a result of file sharing amongst music fans has both frightened and galvanised the recording industry," said Booth.

"The price of CDs in the shops has fallen significantly over the last couple of years and overall sales have dropped. The increase in legal downloads from Internet sites such as iTunes has not provided the industry with replacement revenues that are sufficient to deal with fall in income from CD sales. The effect of all of this is expected to settle down in about three years time. But a large overall drop in revenue will have occurred, with a resultant loss of jobs in the industry, from record company personnel to sales assistants in record shops.

"Interestingly, the record industry was always seen as too risky for private equity and was left to fund itself. But now we are seeing venture capital entering the arena in an attempt to 'cash in', whilst the major record companies reorganise themselves in the light of their dwindling turnover," continued Booth.