“The perspective of the music market to counter the illegal downloading”
I. Presentation of the labels’ market
II. Secondary Data
III. Choice Of the panel
V. Analysis of the answers
The purpose of this market study is to find a way to solvethe problem of illegal downloading. In France, labels are complaining about illegal downloading they are putting pressure on the government to punish the pirates. So French government created a law to counter the massive illegal downloading, it’s called ADOPI. This law is not very well accepted by the customers.
I. Presention of the labels’ market
In the 21st century, client spent farless money on recorded music than they had done before in 1990s, in all formats. Total revenues for CDs, vinyl, cassettes and digitals download in the world dropped 25% from $38.6 billion in 1999 to $27.5 billion in 2008 according to IFPI. The revenues in the U.S. dropped from $14.6 billion in 1999 to $10.4 billion in 2008. The Economist and The New York Times report that the turnover of thelabel companies will keep going downward, the trend is expected to continue for the foreseeable future —Research predicts that by 2013, revenues in USA may reach as low as $9.2 billion.
This dramatic decline in revenue has caused a lot of layoff inside the industry, driven retailers out of business and forced record companies, record producers, studios, recording engineers and musicians toseek new business models because the actual label is obsolete, they didn’t pay attention of the cultural revolution link to the appearance of internet .
In the first of the decade, the record industry took aggressive action against illegal file sharing( a lot of companies have been assign in justice) . A lot of website had to close. In 2001 it succeeded in shutting down Napster (one of theleading on-line source of digital music similar as fnac in France), and it has threatened thousands of individuals with legal action. This failed to slow the decline in revenue and proved a public-relations disaster, because now these companies look likes ogre. However, some academic studies have suggested that legal downloads did not cause the decline. Legal digital downloads became easyliavailable with the debut of the iTunes Store in 2003.
The popularity of internet music distribution has increased and in 2009 according to IFPI more than a quarter of all recorded music industry revenues worldwide are now coming from digital channels. However, as The Economist reports, "paid digital downloads grew rapidly, but did not begin to make up for the loss of revenue from CDs." And thedigital copies are also better for making money much less cost, and most of the digital copies are protected, it results hard to spread the digital legal downloaded music. It’s the easily access to illegal download and the streaming website that permit to spread the music and may be the cause of such a loss, but also it’s because the label companies didn’t adapt themselves to the culturalrevolution; some website have been created such as deezer in France and permit to listen to music for free. But these website have been attacked by the labels and they order to pay a lot of money (800 000 €) to be able to stream their music; this huge amount pushed this kind of companies to have a lot of advertisement and to create partnership with some companies as Itunes to be able to sell the musicon the website.
The turmoil in the recorded music industry has changed the twentieth-century balance between artists, record companies, promoters, retail music-stores and the consumer. As of 2010, big-box stores such as Wal-Mart ,Best Buy, Carrefour, Fnac retail more music than music-only stores, which have ceased to function as a player in the industry. Recording artists now rely on live...