In June 2009 with the passing of the HADOPI law, France became the first country to use legislation to tackle the issue of piracy in music downloads. The UK Digital Economy Bill, which passed somewhat controversially through Parliament earlier this year and includes provisions for banning illegal file-sharers and blocking websites that infringe copyright laws, is similarly designed to tackle internet piracy through the use of legislation. But how successful is legislation of this nature in reducing music piracy, and more importantly, to what extent does it encourage legal consumption? There seems little evidence so far that they are doing either.

The IFPI (International Federation of the Phonographic Industry) has revealed its analysis of global music consumption in 2010, highlighting an overall drop in physical CD sales of -14.2%, with an increase of only 5.3% in (legal) digital sales during the same period leaving a significant shortfall in revenue for the industry.

Common opinion generally decrees that, in the future, the majority of consumers will be moving to the cloud to obtain broader access to music. While this is almost certainly true, in the fragmented world of consumer music consumption, a ‘collector’ mentality and desire for personal ownership continue to exist amongst many music fans. The music industry needs to ensure these different needs are addressed, rather than assuming a single model will satisfy all consumers.

Vinyl records not affected by the industry downturn?

Over the last few years a pleasing story has continued to appear like clockwork in the press. Amid general doom and gloom and tales of music industry collapse, we are told, somewhat counter-intuitively, that sales of vinyl records are continuing to increase. See the chronologically listed selection of articles below for proof.[1]

 

Declining consumer spend on physical music has forced the demise of many traditional bricks and mortar record stores. For the music industry, question marks remain about how, and even whether, the revenue generated by digital music can offset this loss. Rather than fighting this, the music industry first needs to ensure that the remaining retail consumers don’t drop out of its customer base altogether.

High street closures

The first album I bought was Happy Nation by Ace of Base. Yeah, I know. The format I bought it on – cassette – hasn’t aged any better than their distinctive (and, some would argue, inimitable…) brand of Swedish pop-reggae. And now, it looks like the record shop I purchased it from might be taking a similar slide into the field of “ha, remember them?” obscurity.

The shape and direction of the digital music industry can be hard to evaluate at the best of times. This week saw BSkyB give up on their Sky Songs service just a year after launching it [1], while Spotify continues to grow a paying subscriber base (albeit not yet to a level deemed profitable) [2]. Given these contrasting fortunes, it seems an appropriate time to revisit demand for streaming services, and see whether they’re any closer to establishing the mass-market audience the model relies on.

With growing smartphone and tablet ownership, and increasing connectivity of home stereo/entertainment systems, the notion of being always-on and seamlessly interacting across multiple devices is becoming a way of life for many consumers. Within this context, a service offering unlimited access to any song, artist, or label catalogue, across any internet-enabled device, can surely have never been a more enticing proposition?

In the PC market, Microsoft’s Windows OS is as common as the mobile phone in your pocket. However, Windows Mobile has struggled to capture the imagination of both consumers and businesses. In fact, with a rapidly declining 5% [1] of the global smartphone market it’s fair to say that relatively speaking Windows Mobile has been a horrible failure. But that’s all about to change.

Recent research by GfK NOP [2] shows that interest in Windows Phone 7 (the catchy name given to the successor of Windows Mobile 6.5) is strong. Almost one in five (18%) of UK mobile phone owners say they would consider a Windows Phone 7 (let’s go with WP7 from here on in) handset (available on HTC and Samsung devices among others) when they next come to renew, upgrade or buy their next mobile phone. Of course current smartphone owners display much higher levels of interest (32%). What’s more, Microsoft will be pleased to hear that of all smartphone owners, those using Google’s Android will be most interested (41%) in WP7. So what’s changed?

For consumers there may have never been a better time to buy DVDs, with prices falling and new avenues for purchasing appearing almost daily, but how has this affected the consumer mindset and where does this leave traditional retailers?

Online retailing is by no means a new entry to the consumer electronics market; in fact it’s been five years since Online first overtook Supermarkets in terms of % market share [1]. Consumers have long since embraced Online and its ability to compete on both price and choice (with supermarkets and traditional high street retailers respectively), especially in the realm of high price purchasing such as consumer electronics. In this case, Online represents a step forward in consumer purchase planning, with the internet offering access to a range of price comparison websites, manufacturer specifications and consumer forums to collate information before purchasing, offering the consumer the chance to be more methodical in their decision making than in the pressure cooker environment of a Saturday afternoon trip to the local electronics department.

The future of 6 Music may be decided later this month; a recent survey suggests that keeping the station alive should form part of the BBC’s duty, regardless of whether recent publicity has engaged a sufficiently large enough audience to justify its existence to the number crunchers.

Over the last few months BBC 6 Music has successfully managed to do something it previously had not been notable for; namely commanding a significant share of radio listeners and attracting correspondingly high levels of media and public interest. (According to recently released RAJAR figures* the digital station was up 47% on the previous quarter and 50% on the year, bringing it to a total of 1.02m listeners in Q1 2010.)

The catalyst for this growth certainly appears to be the leak back in February that the BBC was considering shutting the station down, officially confirmed by a Mark Thompson announcement in March; a move which has resulted in public outcry, a protest outside Broadcasting House, with another planned for 22 May and huge media publicity.

Despite the continuing efforts of manufacturers, it seems that we the consumer are still not recycling our old mobile phones.  Research by GfK NOP way back in 2007 first highlighted the problem of consumer lethargy but since then recent reports suggest there has been little improvement since.

An article by Telephony online for example, bemoans that:

“when a mobile phone reaches its end of life or, more likely, a consumer opts to upgrade, the three most common places for it to end up are a landfill, an incinerator or the consumer’s desk drawer.  Nokia’s own studies find that only about 3% of consumers are recycling their handsets today …there could be as many as one billion sitting in desks, consumers  aren’t spending the time or effort to seek out a recycling program.”