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The European Music Sector
State of play, challenges and ways ahead
Fabien MicletEuropean Music Office
A soft power tool
From Beethoven to Adele: a strong heritage
A mosaic of genres (national folklores, classical, popular)
Europe's trademark: a mixed model
Music: an asset for Europe
CC
CC© Universal Music Group
© Bjork
A rich and diverse ecosystem
• Europe: 50% of global music publishing revenues and 1/3 of global recording sales (source: IMPALA)
• Recorded music: physical, radio, online, mobile, video games, cinema, TV...
• Live music: festivals, venues -> macro to micro
• Market structure: Majors, independents, not for profit, public support
Music: an asset for Europe
No 'one stop shop' approach
© Rock am Ring CC
CC CC
2001-2013: A double difficulty
‘Digital shift’ (new distribution channels, consumer choices) + recent economic downturn
rise of online piracy combined to decline of physical and live music sales
Challenges 2008: 40 billion music files shared
worldwide, piracy rate 95% (source: IFPI).
Physical revenue in Europe: €7.1 billion in 2000 to €3.1 billion in 2010 (source: IFPI) Case of Finland
Economic crisis : decline in ticketing figures for venues and festivals
Source: IFPI digital music report 2013
2012: growth of global music sales (0.3%)-> first time since 1999 (IFPI)
Boost: legal online services, mobile apps, rise of subscription services (Case of Finland)
Good news, but does it benefit European operators, artists, music listeners?
Challenges
Source: IFPI digital music report 2013
ChallengesObstacles to cross-border circulation: a key issue
Market obstacles to circulation of repertoires across EU borders
• radio choices• language diversity
Variety of national regulatory regimes in the EU • Taxation • collective rights management • Cross-border licensing issues
Low level of cross-border circulation of EU music repertoire (EMO study)
ChallengesObstacles to cross-border circulation: a key issue
Source: ‘Music Crossing Borders’, EMO / E. Legrand
ChallengesObstacles to cross-border circulation: a key issue
Same problem for European music outside the EU borders (regulations, language barriers and promotional environments )
The EU, a single market... for US music? (EMO study)
Vastly untapped potential
ChallengesObstacles to cross-border circulation: a key issue
Source: ‘Music Crossing Borders’, EMO / E. Legrand
Harmonizing online rules
Policy
• Collective rights management: transparency and cooperation
• Multi-territorial licensing: reduce cross-border transaction costs (KEA)
• Access to finance, incentives to take risks and innovate (Creative Europe, financial guarantee)
• Taxation: online and offline equity
Improving the financial framework
European Commission
Cross-border circulation: a crucial area of action
Encourage cross-border live music tours and concerts (Creative Europe)
Promotion (recorded sales) + performance rights + revenue for venues and festivals + spillover effects (tourism, contractors, etc.)
Best means for non Anglo-Saxon artists to overcome market hurdles (radio, labels, etc.)
Radio incentives to play EU repertoire : embrace linguistic diversity (+online services)
EU music Observatory to quantify circulation and mobility
Support international tours, export offices, showcases, visibility (soft power)
Policy
©EMI
©Universal Music Group
