Feeds

Legal, British P2P 'by end of year'

ISP-music talks get serious

  • alert
  • submit to reddit

SANS - Survey on application security programs

For the music business, the attraction is best explained by the following slide. Music has never been so popular, but the share of the British consumer's income that goes on paid-for recorded has been in long-term and accelerating decline.

Music revenues vs "wallet share" [click to enlarge]

The CD has been on the market for 26 years, and there are no new physical formats on the horizon. The digital download business is worth over $2bn, but is dwarfed by the number of unlicensed exchanges for which labels, publishers and creators see no revenue at all.

80 per cent of P2P users recently surveyed by the University of Hertfordshire for British Music Rights said they'd consider signing up to a legal file sharing service.

And for both networks and music companies, music services that for the first time match consumers' online activity may end the eternal arms race between enforcement and unlicensed music outlets.

Risks and rewards

There are risks for the respective industries, too. The music business fears two in particular: pricing and "substitution".

The original fear of losing the ability to set a price for music has been largely superseded by concerns about setting the price of the licenses too low. Once fixed, this would be hard to raise.

This is related to a wider concern about the substitution effect: to what extent subscribers, once given "unlimited" access to music, would cease to buy CDs. Since a subscription covers a household, the substitution effect could be significant in some cases. Nevertheless, even pessimistic modeling suggests revenue would be higher than it is today, if not as much as some hope.

Inside the business, which covers a variety of different competing interests, concerns vary. While independents fear being excluded by the big four, major labels fret that their market share wouldn't be reflected in the usage patterns. To date, licensed digital downloads tend to magnify their dominant share: at iTunes, the "head" has grown at the expense of the "long tail". Publishers, songwriters and composers are anxious that their contribution is both adequately reflected in music service revenues, and fairly collected. In the physical world, the recording copyright takes the lion's share of rights revenue.

Blanket relief

At the very least, the negotiations currently underway break new ground for both music and network businesses. A voluntary agreement leaves the idea of a compulsory "blanket" access to music charge, levied on all UK broadband subscribers, all but dead. If it was ever seriously alive. ®

3 Big data security analytics techniques

More from The Register

next story
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Audio fans, prepare yourself for the Second Coming ... of Blu-ray
High Fidelity Pure Audio – is this what your ears have been waiting for?
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Zucker punched: Google gobbles Facebook-wooed Titan Aerospace
Up, up and away in my beautiful balloon flying broadband-bot
Apple DOMINATES the Valley, rakes in more profit than Google, HP, Intel, Cisco COMBINED
Cook & Co. also pay more taxes than those four worthies PLUS eBay and Oracle
It may be ILLEGAL to run Heartbleed health checks – IT lawyer
Do the right thing, earn up to 10 years in clink
prev story

Whitepapers

Securing web applications made simple and scalable
In this whitepaper learn how automated security testing can provide a simple and scalable way to protect your web applications.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.