The Global Music and New Media Industry - WIPO Global Music and New Media Industry ... broadcasting & public performance rights ... Philippines 25% 17% Singapore 33% 16%

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Strictly Privileged & Confidential

The Global Music and New Media Industry

WIPO Regional Forum on Collective Management of Copyright and Related Rights: Challenges and Opportunities

Singapore, June 28 – 30 2011

Leong May-SeeyRegional Director, Asia

[email protected]

www.ifpi.org


IFPI, International Federation of the Phonographic Industry

• Non profit organisation representing the producers and distributors of sound recordings & music videos worldwide

• over 1400 members in about 66 countries • registered in Zurich Switzerland, in 1934• IFPI’s headquarters located in London• Regional offices in Miami (Latin America) Brussels (EU and

Eastern Europe Affairs) Moscow (CIS) and Hong Kong (Asia and the Pacific)

• Affiliated with RIAA (USA)• Consultative status with UNESCO, ILO, WIPO, WTO, Council

of Europe, WCO, Interpol

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IFPI Affiliated Local Groups in Asia Pacific

• Australia Recording Industry Association (ARIA)• Recording Industry Assc of Japan (RIAJ)• Indian Music Industry (I M I )• IFPI Hong Kong Group• Hong Kong Recording Industry Alliance (HKRIA)• Recording Industry Assc of Malaysia (RIM) • Recording Industry Assc of New Zealand (RIANZ)• Philippine Association of the Recording Industry (PARI)• Recording Industry Assc of Singapore (RIAS)• Recording Industry Foundation in Taiwan (RIT)• Thai Entertainment Content Association (TECA)

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IFPI Affiliated CMOs in Asia Pacific• Australia - Phonographic Performance Company of Australia (PPCA) 1969• People’s Republic of China – China Audio Video Copyright Association (CAVCA)

established in 2005 but commenced licensing in 2008• Hong Kong – 2 CMOs

1. Hong Kong Recording Industry Alliance (HKRIA) 20082. Phonographic Performance (SEA) Ltd (PP(SEA)L) 1984

• India - Phonographic Performance Ltd (PPL) 1941• Japan – Recording Industry Association of Japan (RIAJ) established in 1942 but

designated as collective administration body in 1971• Korea – Korean Association of Phonogram Producers (KAPP) 2001• Malaysia -Public Performance (M’sia) Sdn Bhd (PPM) 1988• New Zealand – Phonographic Performance New Zealand (PPNZ) 1957• Philippines - Philippine Music Public Performance Society, Inc. (PMPPSI) 2007• Singapore - Recording Industry Performance S’pore (RIPS) 1998• Chinese Taipei – Association of Recording Copyright Owners (ARCO) 1993• Thailand - Phonorights (Thailand) Ltd (PTL) 1997• Indonesia – in the process of setting one up


Role of IFPI

• Promote the value of recorded music - develop rights of members, represent the industry

• Safeguard the rights of members - enforcement of members’rights– Anti-Piracy enforcement actions, both physical and online

environment– Collective Licensing of members’ communication,

broadcasting & public performance rights • Public Awareness, Education, Training • Development & Assessment of Industry Standards for New

Technologies

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Global Recorded Music Sales 2000-2010

0

5

10

15

20

25

30

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Perf RightsDigitalPhysical

US$ Billion


Asia (excl Japan) Recorded Music Sales 2000-2010

0

200

400

600

800

1000

1200

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Digital SalesPhysical Sales

US$ Million

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Global Recorded Music Sales 2010

• Total Trade Revenue = US$15.9 billion • Declined 8.4% compared with 2009; down 41%

since 2000• Physical format fell by 14.2%• Digital format up by 5.3%, account for 29% of total

(was 25% in 2009)• Performance income = US$851 m, up by 4.6%,

account for 5% of trade revenues


Percentage of Digital Sales in Asian Music MarketYear 2010 Year 2009

China 76% 74%Hong Kong 21% 19%India 45% 38%Indonesia 58% 54%Japan 20% 24%Malaysia 42% 30%Philippines 25% 17%Singapore 33% 16%S. Korea 55% 55%Taiwan 14% 14%Thailand 59% 51%

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Digital Sales by Format 2010

Online MobileSubscription

both online and mobile

Others

ChinaHong KongIndiaIndonesiaJapanMalaysiaPhilippinesSingaporeS. KoreaTaiwan Thailand 11% 87% 2%

21% 49% 14% 16%2% 18% 68% 12%1% 96% 2% 1%1% 98% 1%

11% 87% 1% 1%1% 91% 2% 6%7% 89% 4%3% 13% 33% 51%

58% 19% 22% 1%1% 39% 58% 2%


Challenges faced by the Record Industry - Music Piracy

• Physical Piracy – CD Piracy– CD-Recordable (CD-R) Piracy

• Internet Piracy• Mobile Phone Piracy

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Physical Piracy Levels 2010 (%) 2009 (%) 2008 (%)

China 95 90 90Hong Kong 8 10 10India 60 60 55Indonesia 95 95 95Malaysia 55 60 60Philippines 83 83 83S Korea <1 <1 < 1

Singapore 10 10 10Taiwan 15 20 22Thailand 46 50 30Vietnam 95 95 95


Online Piracy Levels

• Over 90% piracy level• Estimate of more than 40 billion illegal

song files downloaded over P2P services per year

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• Illegal Peer to Peer (P2P) filesharing– Xunlei, BT, Gnutella, DirectConnect, eDonkey, eMule,

LimeWire (closed at end 2010), Foxy (closed in 2011)• Forum/Blogs Sites offering vast amount of infringing files/links

– Uwants.com.hk, discuss.com.hk• Unauthorised Cyberlockers

– Rapidshare, Megaupload, filebanker.net, 4shared• Unauthorised Music Deeplinking Sites

– Baidu, Sogou, Gougou• Unauthorised Music Download / Streaming Sites

– 1Ting.com• Unauthorised Video Sites

– Tudou.com• Unauthorised WAP sites for mobile downloadStrictly Privileged & Confidential

Sources of Infringing Music on the Internet and for Mobile Phones


Mobile Piracy

timewe.net haodewap.com wap.baidu.com

mp3.3g.cn

lexun.cn

wap.net.cn

mp3.3g.cn

dtmp3.cn

mp3.lexun.cn

ltmp3.cn

wapoh.cn

mp3.3g.net.cn

dtop.cn

dtmp3.cn

zuitu.com

ddown5.wapnc.com

WAP sites in China

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Measures to Combat Music Piracy• Adequate laws - copyright laws and others - implementation of

the various conventions, treaties and international agreements; Special OD laws; Laws to deal with Organized Crime, digital piracy

• Vigorous & effective enforcement of the laws – create deterrence• Co-operation by various stakeholders eg ISPs, Telcos, Payment

service providers, Credit Card co.• Graduated response system of warnings to repeat online

infringers leading to suspension of internet accounts eg Korea, Taiwan, France, UK, NZ

• Use of technology by Industry e.g. RMI, watermarking, fingerprinting, filtering technologies

• Education and Public Awareness• Bringing new and exciting legal music services to the

consumers


South Korea – case study• 2007 – changes in government stance; Largest

online infringers found guilty & turned legitimate (Soribada & Bugsmusic); legislative changes - OSP liability, incl P2P operators, filtering req”t, digital transmission right, broadcast right for foreign record producers

• 2009 – graduated response leading to suspension of accounts, public performance right for record producers

• 2009 & 2010 – education & public awareness, implementation of GR (>100K notices sent; 11 accounts suspended in Nov 2010)

• 2011 – webhard registration law passed• Music industry up 10% in 2009, 12 % in 2010; • Digital music account for 55% of market; Over 15

legal digital services• Increased investment in & export of Korea music

0

50

100

150

200

250

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Year

Valu

e in

USD

Mill

ion

Digital SalesPhysical Sales

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Digital music revenues now make up more than 29% of the global market,

over 400 services, 13 million tracks• Online downloads – iTunes, AmazonMP3, 7digital• Online subscription – Moov, Pandora, MelOn, Deezer• Mobile ringtones and mastertones, caller ringback tone• Mobile downloads - Omusic• Mobile subscription – NTT Docomo, China Unicom,

Omnifone’s MusicStation, Vodaphone• Advertising support models – Google China, Sina,

Spotify• Social networking licensing – YouTube, myspace• Cloud services - Sony’s Music Unlimited, iCloud


Video

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www.pro-music.org

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www.ifpi.org


Thank you.


Thank You!

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The Global Music and New Media Industry - WIPO Global Music and New Media Industry ... broadcasting & public performance rights ... Philippines 25% 17% Singapore 33% 16%