January 21, 2010 2:01 PM

Digital Piracy Stronger than Ever

By
CBSNews
(AP)  Strong growth in digital music sales in 2009 led by Lady Gaga failed to stop the continuing slump in the international recorded music industry, and pirates remain a major problem, an industry body said Thursday.

Downloads of singles increased by 10 percent to 1.5 billion units in 2009, with Lady Gaga's "Poker Face" leading the field with 9.8 million units, the International Federation of the Phonographic Industry said.
Digital album sales were up by 20 percent, and combined digital revenues rose to $4.2 billion.

However, total revenue including CDs fell 12 percent in the first half of 2009, continuing a decline which has depressed sales by 30 percent since 2004, the IFPI's annual digital music report said.

The federation blamed piracy for much of the slump, estimating that illegal downloads now account for about 95 percent of all music downloaded despite the number of licensed music services increasing from 50 in 2003 to 400 in 2009. Licensed providers usually charge a fee for music downloads and ensure the artists receive a profit from the sale of a song.

"Mass piracy is continuing to hurt the industry," IFPI Chief Executive John Kennedy said, warning that it also acted as a "disincentive for people to invest in the market."

He called for more countries to adopt graduated response legislation - first warning people who are downloading illegally and then suspending their Internet connection if they fail to stop.
Such legislation was passed last year in France, South Korea and Taiwan.

"We are doing all we can to cater for an increasing want to consume music legitimately," Senior Vice President, Digital, for Universal Music Group International Rob Wells said.

Wells said Orange Monkey - a pay-as-you-go program from Orange, Universal Music Group and 4Music - has taken on 110,000 subscribers since launching six months ago in Britain. Orange Monkey users get benefits including free texts and free music for topping up.

Stephen Garrett, head of Kudos film production company, said Kudos had used a trial program to block illegal downloads of an episode of Spooks. Data showed 340,000 attempted illegal downloads of the episode were blocked, but about 50,000 were successful.

AP
Add a Comment
by Seirra7 January 5, 2011 9:23 AM EST
Having lost most of my early, DRM'd to death, downloaded music collection legally purchased from OD2, (now deceased - from MSN Music UK), I am annoyed and frustrated with the music industry. The licenses on the music were lost due to legal and proper MS operating system upgrades, and software re-installations, and a new laptop. 3 shots and the collection went.

Being a decent sort of person, and wanting to do the right sort of thing I have lost a lot of music. I know that now I can get it DRM free (Amazon) but feel ripped off and wounded by the industry. (Yes I know about the small print, but what about the customer !)...

.....
Reply to this comment
by Seirra7 January 5, 2011 9:21 AM EST
Having lost most of early, DRM'd to death, legally downloaded music collection legally purchased from OD2, (now deceased) (MSN Music UK), I am annoyed and frustrated with the music industry. The licenses on the music were lost due to legal and proper MS operating system upgrades, and software re-installations, and a new laptop. 3 shots and the collection went.

Being a decent sort of person, and wanting to do the right sort of thing I have lost a lot of music. I know that now I can get it DRM free (Amazon) but feel ripped off and wounded by the industry. (Yes I know about the small print, but what about the customer !)...

.....
Reply to this comment
by barbaram99 January 21, 2010 4:54 PM EST
I would rather buy the CDs..
Reply to this comment
by Scimajor January 21, 2010 2:24 PM EST
Recording Industry Spoksman: "CD sales are down! SEE? Piracy is killing us.".

Scimajor: "Ahhhh but you see it's because people want to recieve their music digitally ... and sure enough digital sales are up."

Recording Industry Spoksman: "CD sales are down! SEE? Piracy is killing us.".

Scimajor: "Yes, thanks for saying that again Sherlock but GET OVER IT. People want digital copies not CD's, they don't want to buy an entire album for 2 good songs, they're sick of the obsense royality top 20 nonense and they think the artist should be paid a fair amount for their work.".

Recording Industry Spoksman: "Ok but piracy is killing our industry."

Scimajor: "No, your greed is killing the industry."
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