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The industry as a whole, over the years has tried to devise a solution to the conundrum, but endured allot more failure than success; despite their emphasis on legislations in regard to organizes piracy companies, and their users. In this report, I will be analyzing how illegal digital downloading/piracy, affects the UK Music Industry, and Global Economy. When and how did it start? The info graphic below exhibits the diminution of CD sales, transpiring from the year of 2000. This quandary was due to organizes Illegal digital downloading companies, capitalizing off legal downloading, via POP file sharing.
Anapest- a POP file sharing network was one of the main culprit s during 1999-2001, causing the music industry a mass loss of revenue. POP (Peer-to-peer) file sharing, enables you to search, locate and download file’s to your computer or device, from others users of the same network; as long as they are connected to the network, and have the file you are looking for on there computers system. POP file sharing doesn’t’ rely on a central index server to host the demanded file; as the users of the network, together are the provider and consumer, hence the expression file sharing”.
How has Illegal digital downloading, affected the music industry & Global Economy? Since 1999, it has been exceedingly complicated for the music industry to be able to control illegal digital downloading, as the numbers of consumers supporting the illegal organizations were rapid expanding. Thought pop file sharing is not as prominent today as previous; there are still other means for consumers accessing and downloading illegally. The IF (International Federation of the Phonographic Industry) is an organization that represents the music industry world wide.
They endorse the value of recorded music, and protect Music Industry Structure and Interaction Assignment- Music Piracy By Ankle-d-Disorientate annually. The PIP’S Digital Music Reports confirms: 1,000% increase in digital income between 2004-2010 31% decline in the value of the Global recorded music industry Estimated loss of Ebony between 2008 and 201 5, due to piracy ban music file were illegally downloaded in 2008 Estimated 95% of music downloads are illegal Growth of 6% in growth in digital music income (IF publishes Digital Music Report 2011, 2011, www. Pi. Org) The ARIA (Recording Industry Association of America) is a trade organization which kooks after the major music organizations in the US. Theses organizations produce, assemble and/or dispense Just about 85% of all legal recorded music created and sold in the US. The Aria’s statistics show: In the last 10 years, U. S music sales have dropped by 47%, from $14. 6 billion to $7. Billion. During 2004-2009, 30 billion songs were illegally downloaded on file- sharing networks In 2009, only 37 % of music in the U.
S was paid for An approximation value of among $7 to $billion of illegal digital music is , consumed in the U. S annually Illegal downloading, of music and movies take up 24 % f the internet bandwidth globally, and 17. 5% in the U. S (Scope Of The Problem, (Year unknown), www. Aria. Com) BPI (The British Phonographic Industry) It is a trade organization, est.. 1973, and funded by its members; who are the Auk’s four major labels and many independent music organizations. These members are responsible for nearly 90% of UK recorded music sales.
The BI’S statistics show: The BPI has reported that for the sixth year in a row, UK music sales have fallen. Both digital and physical album sales fell 7% last year, from 128. 9 million to 119. 9 million. The 2009 figures saw an overall drop of 3. %, despite a rise in download sales Organizes Piracy Companies, Which Affected The Music Industry? As technology and the capability of computers developed, organizes piracy companies took advantage of the situation, and were proficient in capitalizing off illegal digital downloading.
Although illegal downloading has been a cause of monetarily loss to the music industry (a negative); they are also innovators for the introduction of digital music (a positive). Since 2003/2004 the music industry has been able to capitalist off legal digital music downloads, through companies such as Apples. Inch’s tunes store, ND Amazon Music Here are a few of the most famous illegal digital downloading companies:- Anapest Launched in 1999, by student Shawn Fanning, the first pioneering pop file sharing site, where users were able to illegally download music, for free. Million users and millions songs available for download Responsible for the plummet of Global Music sales in 1999 Lawsuit filed December 7th 1999 by the ARIA for copyright infringement An injunction was processed on March 5th 2001, requesting that Anapest put a stop to plus an additional $10 million early payment for future licensing royalties Anapest as officially shutdown in July 2001, re-emerging as a legal download company in 2004 Lit-née Wire.
Founded in 2000, by Mark Gorton (A former Wall Street trader) Its 50 million users played a major role in the loss of revenue in music sales from 1999-2009 ARIA lawsuit, resulted in a permanent injunction (case lasting four-years) Ordered by the courts to immobilizers the websites functionality on Cot 26th 2010, after losing a legal encounter with the ARIA The Pirate Bay One of the most famous file sharing websites; not hosting the files its self, allowed users to search for web links to download media content for free.
Launched in 2003 by a four friends from Sweden, Operating on a non-hosting-file platform, although pop is commonly used in the process. In April 2009, Swedish courts found the four friends culpable in aiding people to copyright infringe, by the formulation of The Pirate Bay website After an appeal in 2010 the verdict was upheld, and the site has still remained active What can governments and organizations do to embark upon the problem? The UK Government- ‘Digital Economy Act’ Introduced in 2010, the new law will work with Sips (Internet Service Provider’s) in tackling the ever increasing online copy infringement.
If users are found to be copyright infringing online, up to three- warning notices will be issued. If users continue, a suspension or termination to the internet connection will occur, with possible legal action. The law is being reviewed, and is set to commence in 2012. The law aim is to: Get Sips to block users from downloading illegally/copyright infringing Get SIPS to send warning letters to users found to be copyright infringing online. If ignored, suspension or termination will occur to the internet connection. (Three warnings, then action will be taken) Protect Jobs in the creative industries
Decrease online copyright infringement by 70% The French Government- ‘HEADPIN’ Is an independent agency introduced in 2007, formed by the Creation and Internet law in France, which has been successful. HEADPIN is acquiescent with the EX. law, and they have a legal out look on their processes. HEADPIN is designed to: Signal copyright infringes about their unlawful doings (illegal downloading/flee sharing) Serve notices to these users, with a legal approach (Notices have bee served sincerest) My Opinion Alternatives to illegally downloading Sine the outbreak of piracy, the industry has created incentives for consumers to buy USIA cheaply.
Companies such as Tests sell chart CDC at an affordable price compared to other shops such as HAM. Theirs is also other avenues to legally access digital music, from services like Spottily; offering streaming/subscription models the consumer prefers to download digitally, and own the file, companies such as Apple tunes Store, and Amazon Music offer albums and single tracks. Most singles are in the pop to pop bracket. I think that the government cracking down on piracy, will make the public more aware of their wrong doings, and the threat of getting the away involved, will change the attitudes and their behavior.
If the public became use to paying for music again, the music industry will bloom, and labels will be more willing to invest in new talent, as the revenue from sales will be much higher than in previous years. This can open doors for the struggling independent artists, getting the recognition they deserve, from a major label signing. The process of getting the public to purchase music legally will be a long one, but if the government legislations stay strong, I believe the public will get the importance of the message, and we will see change.