Digital Music OnlineChing Man Tang

Digitaalinen Musiikki Internetissä

Physical and digital Sales in Finland and elsewhere Legal

◦ Distribution Illegal Summary

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Contents

Digitaalinen Musiikki Internetissä

In 2010 sales of recordings went down 7 %, digital sales grew 41 %

Digital music has cut down on distribution costs and ”delivery”time

Digitalisation has forced artists and record labels towards modern sales

New artists utilise both; digital backs the physical

Consumers still prefer physical

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Physical vs. Digital

Digitaalinen Musiikki Internetissä

Backing physical sales digitally ◦ Promotion◦ Social media: Facebook, MySpace, Youtube◦ Visibility◦ Samples◦ Street team

Audience◦ Target audience

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Physical vs. Digital

Digitaalinen Musiikki Internetissä 5/14

Physical and digital record sales (world)

Digitaalinen Musiikki Internetissä

84.20%

18.23%

Total sales 2010

Fyysiset tal-lenteetDigitaaliset tallenteet

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Total sales 2010

Digitaalinen Musiikki Internetissä

47.80%51.80%

0.07% 0.46%

Digital sales

Singlet Albumit MusiikkivideotMuut

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Total sales 2010

1.58%0.54%

97.60%

0.24%

Physical sales

Singlet Vinyylit

CD:t Muut

Digitaalinen Musiikki Internetissä

Few Finns legally buy digital music Easy legal music distribution channels are

favored Paid by credit card, PayPal etc. Thought of as expensive

◦ Illegal downloads

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Legal downloading

Digitaalinen Musiikki Internetissä

Most popular digital music store Originally DRM-copy protected

◦ Only iTunes and iPod Pricing

◦ 0,99€/song◦ 9,99€/album

Artists not happy with their share

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iTunes Store

Digitaalinen Musiikki Internetissä

Over10m. users Over10m. tracks Free and premium version Possibility to buy tracks Mobile apps Used only in a few countries Critisized by record companies

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Spotify

Digitaalinen Musiikki Internetissä

> 90% of digital music consumption Easy Free Lots of distribution channels

◦ KaZaA, eMule, DC++, BitTorrent

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Illegal downloading

Digitaalinen Musiikki Internetissä

Working version published 2003 Three sides: user, tracking server and www-

server Meant for distribution of single files/file

packets The Pirate Bay is the largest .torrent-index

◦ Established in 2003, independent organisation 2004

◦ Trial 2009

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BitTorrent

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Making minimum wage online

143 self-paid records 155 records sold on eBay 1161 iTunes/Napster albums

◦ 0,94$/album 12 399 Amazon iTunes mp3s 1 546 667 Last.fm plays

◦ 0,00075$/play 4 053 110 Spotify plays

◦ 0,00029$/play

Digitaalinen Musiikki Internetissä

Physical sales still popular Digital sales does not make up for physical

deficit Only few download legally Music sales getting modern Digital downloading not good business for

artists

Summary

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