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.

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?

GfK NOP research reveals most popular online brands in communication, entertainment and information services

The ‘Connected Life’ study, which asked 2,000 UK internet users about their favourite services, found 60% of music users stream music directly from the internet. While iTunes still leads the direct-streaming arena (17%), Spotify is coming up at a close second, with 12%.  Looking at all digital music users (not just direct streamers), 11% of these have used Spotify, making this fourth most popular digital music service, behind the more established Real Player (13%), Amazon (24%) and ITunes (50%). Another newcomer, Last.FM, also fares well with seven per cent having used the service; ahead of two of the pioneers of digital music mp3.com (5%) and Napster (4%).

Babita Earle, Divisional Director at GfK Technology comments:

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.”