Despite global internet piracy, the music industry remains optimistic about the growing digital music market. In its Digital Music Report 2012, the International Federation of the Phonographic Industry (IFPI), reports that the turnover on paid downloads and streaming subscriptions has increased. In 2010 this turnover from digital sales contained 27% of the total music industry. In 2011 this share was much higher, namely 32%.   

Looking at the United States, where the digital music market surpasses the ‘physical’ music industry in turnover, IFPI is confident this trend will continue. Furthermore, IFPI emphasized the ‘crucial role’ of internet service providers in the fight against internet piracy in their report,. According to IFPI, the controversial French Three Strikes Act, ‘HADOPI’, remains a light example of a fruitful method to fight online piracy. The French Three Strikes Act makes it possible to disconnect internet users if they engage in illegal file sharing, after they have received three notifications of violating copyrights by illegally downloading pirated content.  

Interestingly, the rise of digital music in the Netherlands does not follow the international trend. According to NVPI, a Dutch association for the entertainment industry, the turnover on digital music is only 15% of the total turnover in the music industry in the Netherlands. A cause for this may be that around 40% of Dutch consumers participates in illegal file sharing online. Hence, NVPI maintains their support for legislative reform, such as the introduction of a ban on downloading content from evidently illegal sources, as recently proposed by the Secretary of Security and Justice Mr. Teeven. We will keep an eye on these developments on Future of Copyright this year.

References: Digital Music Report 2012, IFPI;  Webwereld 

By: Deniece Teterissa