IFPI online music report

The Music Industry’s Internet Strategy

Is Turning The Corner

Robust anti-piracy enforcement - including lawsuits

against large-scale file-swappers - is increasingly
accepted as the right and the obligation of record
companies and other copyright holders. Market
evidence appears to show that this strategy is
working, with the total number of simultaneous
illegal music files available on peer-to-peer services
falling from an estimated one billion in April 2003 to
800 million in January 2004.

We believe that the music industry’s internet strategy

is now turning the corner, and that in 2004 there
will be, for the first time, a substantial migration
For everyone working towards the creation of a of consumers from unauthorised free services to
successful legitimate online music business, the start the legitimate alternatives that our industry is
of 2004 brings a new sense of optimism along with providing internationally.
evidence of real change.
The purpose of this first such publication produced
Legal online services are spreading quickly across the by IFPI is to raise awareness of the developments in
United States, and are now beginning to take hold the online music market, and in doing so, help
firmly in the rest of the world. A picture of healthy accelerate them. This report focuses on the events
competition is emerging in Europe as legitimate that took place in 2003 as well as the prospects for
services such as iTunes, Napster and Rhapsody, as 2004 - but it must not be forgotten that these are
well as scores of retailers, Internet Service Providers only the culmination of the work that the music
(ISPs) and hundreds of record companies, vie to break industry and its partners have been doing since the
into a new online market in the first half of 2004. mid-1990s to prepare a thriving legitimate online
music business.
Availability of legally licensed music online from
a multitude of websites in Europe is increasing
sharply - growing during the last three months
of 2003 alone, from a total catalogue of 220,000
tracks to nearly 300,000 across the various
legitimate services.

Public awareness of the legal issues around online

music distribution, a crucial part of our industry’s
online strategy, is much higher internationally than it
was a year ago. Nearly 70% of surveyed respondents
in four major European markets are aware that
unauthorised file-swapping is illegal. Jay Berman, Chairman & CEO, IFPI

1 IFPI ONLINE MUSIC REPORT 2004

The report highlights:

> The rapid development during the course of > The industry will use litigation internationally
2003 of a critical mass of legitimate online where necessary, as it has done in the US.
services, reaching around half a million Making copyrighted music available on the
consumers in Europe by the end of 2003 - a figure internet without permission is illegal in virtually
that is set to increase sharply in 2004. Yet the every country of the world. This is not a grey area
results of our survey, released for the first time in and people who are breaking the law may have to
this report, indicate a very low level of awareness face the consequences.
of the existence of these legitimate services
among consumers. > The different processes our industry is
developing in order to create business models
> A high level of awareness among consumers for the online environment. These are often
internationally that distributing copyrighted underestimated and misunderstood outside the
music on the internet without permission is music industry.
illegal. Our survey shows that in a selected
number of countries in Europe, 66% of all people > Evidence that illegal file-swapping hurts sales
were aware of this. of music. A survey of five major markets shows
that 27% of people downloading illegally
> The impact of the industry’s internet anti- distributed music bought less music as a result.
piracy awareness strategies. Two factors
explain the progress made in this area: the public
information campaigns conducted around the
world in 2003 and lawsuits against individual
large-scale uploaders.

> The increasing public acceptance of the

industry’s use of litigation as an important
option of last resort to fight online piracy.
Our survey figures show that 54% of respondents
support the strategy of legal action, with 19% yet
to make up their minds.

IFPI ONLINE MUSIC REPORT 2004 2

 The Growth Of Legitimate Online
Music Services
A promising online music business According to an internet tracking research by
emerges in 2003 Ipsos-Insight1, the number of Americans who
2003 was the break-through year for online music have paid for downloads doubled from 8% to 16%
services, as record companies expanded their over the first half of 2003. The total catalogue
licensing agreements across a wide variety of online of different songs available to US consumers
retailers, offered consumers greater flexibility of track across the various services was between 400,000
usage, began licensing the catalogue of major and 500,000 tracks - the equivalent of around
international acts and shortened the gap between 40,000 albums - by the end of the year.
off-line and online releases. During 2004 we are likely
to see a sharp acceleration in the provision of online Record companies license iTunes
legitimate music for consumers to enjoy. It was in 2003 that legitimate online services
really took-off in the US. This was driven initially
Major and independent record companies have by the success of Apple’s iTunes Music Store, which
now licensed hundreds of thousands of tracks for was launched to Macintosh users (around 3%
legitimate download in Europe. As an example of computer users in the US) in April. According
of this, EMI in April 2003 announced the biggest to Apple, iTunes sold an average of 500,000
European download initiative, making available downloads per week over the first six months,
over 140,000 tracks from over 3,000 EMI artists for reaching a total of 13 million by mid-October
sale online. when the service was rolled out to PC users.
Apple reported sales of 1.5 million downloads
The music to mobile market has also benefited from
in the PC market in the first week, helping to drive
an increase in licensing deals. This market continues
total sales to 25 million2 by mid-December 2003.
to take shape as record companies embrace the ring
tones market as well as downloads to mobile. iTunes’ success lies in its simplicity, the wide
and flexible usage rights of the tracks and
These recent developments build on a process that
its smooth integration with a portable digital
goes back to 1998, when eMusic.com began selling
player device - the iconic iPod. The service has
MP3 singles and albums on the web in the US.
been heavily marketed by Apple and, alongside
Steamwaves, another American service, launched in
Napster, has become a widely recognised brand
1999 and was one of the first to offer a streaming
name in online music.
subscription service. By the summer of 2001 OD2,
the company founded by Peter Gabriel, launched its Since the second half of 2003, there has been
WebAudioNet platform, enabling retailers to offer a flurry of new service launches and existing
legitimate services in Europe. service enhancements in the US. Most recently,
in January 2004 retailer chain Wal-Mart started
Many services followed from there. MusicNet,
testing a digital service, Real Networks launched
Pressplay and Rhapsody were launched in the
its RealPlayer Music Store offering over 300,000
end of 2001 in the US and were licensed by all five
tracks and Sony announced the launch of its
majors by the end of 2002. These are only some of
Connect downloads service for April 2004, featuring
the services that pioneered the legitimate online
500,000 tracks.
music market, many of which are still active in its
development today. Additionally Loudeye Corp. is developing ‘white
label’ download stores designed for third parties
Where are we now? to build branded digital music services. There
Legitimate services in the US have been further announcements by broadband
The total market for music downloads in the US providers, such as EarthLink, of partnerships
during the second half of 2003 stood at 19.2 million with online music services to offer packages
as measured by Nielsen SoundScan (tracking to subscribers.
download sales since July). Downloads outsold
physical singles by three to one over that period.
1. Ipsos-Insight - TEMPO: Keeping Pace with Digital Music Behaviour,
November 2003. Base: downloaders.

3 IFPI ONLINE MUSIC REPORT 2004 2. iTunes sales from April to mid-December.
 Milestones in the development of the US online music market in 2003

iTunes launched to Musicmatch adds à-la-carte

US Mac users downloads to its streaming service
and partners with Dell to provide
integrated portable player
iTunes surpassed 10 million downloads iTunes launched into the PC market iTunes reached 25
million downloads by
Napster 2.0 launched mid-December
Roxio acquired Pressplay RealNetworks announced 250,000
from Sony and Universal subscribers by end Q3 (RadioOne
(having bought Napster RadioPass and Rhapsody combined)
in November 2002)

BuyMusic.com launched MusicNet announced

185,000 subscribers
MusicNow Download Store
for Best Buy launched

2003
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

The legitimate online music market has become very 2003 were the most recent in Europe. Most of the
competitive, with services looking to secure new European services are OD2’s brand partners, but
marketing routes via partnership deals with: several independent services are also beginning to
emerge, such as Germany’s T-Online ‘musicload’,
> Broadband suppliers: iTunes and AOL, Rhapsody launched in the summer of 2003.
and Comcast
Following the US example, European-based services
> Hardware manufacturers: Musicmatch and Dell, have now widely introduced the à-la-carte option
Napster and Samsung whereby consumers are able to buy single tracks.
> Other established brands: iTunes and Pepsi, This sharply increased the number of customers
RealPlayer Music Store and RollingStone.com for legitimate online services in Europe, which
reached over half a million people across all services.
> Academic institutions: Napster and Penn
State University This figure is expected to rise further as services
such as iTunes, Napster and Rhapsody enter the
Moreover, in January 2004 Apple announced its European market in 2004. The amount of
agreement to license the technology behind its available repertoire on the existing services
digital music player, the iPod, to Hewlett-Packard has already risen sharply. Consumers can access
who will bundle the iTunes Music Store software between 275,000 to 300,000 tracks depending
into its PCs. Hewlett-Packard also intends to on the service used.
release its own digital music player to compete
with other products already in the market such While customer numbers in Europe grow, awareness
as the Zen Xtra, Dell DJ, Rio’s Karma and Samsung’s of legitimate services is still fairly low. A survey
Napster player. According to Apple, the iPod conducted by IFPI in December 20033 found that only
has sold over 730,000 units in the three months one in four people are aware of legal alternatives for
to December 2003. downloading music. Although awareness of such
services increases to nearly 40% for those aged
Legitimate online music services 16-29, the industry clearly has some ground to gain
in terms of making consumers aware of legitimate
in Europe - poised for sharp growth online services in 2004.
A burgeoning online music market has already
taken shape in Europe in 2003 through nearly Other announcements include Coca-Cola’s plans for
30 legitimate services. The launches of Entertainment its forthcoming service mycokemusic.com, due for
UK (EUK) and Virgin Megastore France at the end of UK launch in 2004, based on the OD2 platform.
3. Conducted by GfK Media for IFPI in Denmark, France, Germany and
Italy (n = 3,500, random sample).

IFPI ONLINE MUSIC REPORT 2004 4

 In Germany, Phonoline, a cross-industry business-to- Legitimate online services outside the
business platform for online retailers and portals
offering music services, is set to launch early in
US and Europe
2004 with many services able to offer 250,000 The developments in the online space are mirrored
tracks at launch from all five majors and many outside the US and Europe. Canada’s first legitimate
independent labels. online service, Puretracks, was launched in October
2003 with a catalogue of 175,000 tracks, including
OD2 has been instrumental in the development many local and international artists. The service offers
of the online music market in Europe, along single tracks and album downloads as well as
with its retail partners including MSN Music exclusive material. By the end of 2003 the service’s
Club, Virgin Downloads, Tiscali Music Club, catalogue had reached around 300,000 tracks.
HMV Digital Downloads, Fnac, TDC musik A French-language version of the site will be available
(Denmark), Karstadt and MTV DE. Aggregated data in 2004. The retailer Groupe Archambault also
for European services provided by OD2 shows entered the Canadian online market in January 2004
significant growth in the final three months of 2003. with www.archambaultzik.ca, their French-language
site which focuses on local Quebec talent.
Aggregated online indicators for Europe
In the Asia-Pacific region, the service provider
End Q3 2003 End Q4 2003
Soundbuzz has access to a wide-ranging catalogue
Registered users 380,000 450,000 from international and regional labels, powering
portals such as those of Hewlett-Packard Singapore
Tracks available and the India Times. Other operating services in the
210,000 275,000 region are mylisten.com, PlanetMG, ilikepop.com
(flexible use)
and clickbox.co.kr. In Taiwan, the iBIZ platform
Tracks downloaded
220,000 300,000 imusic.com.tw, to be launched in 2004, will be that
(monthly average) market’s first legal music download service. The
Source: OD2 platform is set to offer 500,000 songs for download
as broadband provision expands.
Most services using the OD2 ‘engine’ offer
a combination of streaming and à-la-carte In Australia, Destra Corp. has created a digital music
downloads, with both subscription and pay as you go network, supporting services from Sanity and HMV
alternatives. Services differentiate themselves by a among others. Destra has access to over 100,000
combination of exclusive content, flexible payment tracks and aims to reach 500,000 by mid-2004.
options and benefits for ‘premium’ service or Telstra Big Pond was the second to launch a
broadband subscribers. download service, making available 200,000 tracks
for download. Other services are expected to launch
To further help the development of the legitimate during 2004.
online music market, IFPI and its record company
members are working with music publishers and In Brazil, digital service provider iMusica, launched in
authors’ collecting societies in Europe to create a March 2000, is the first online music service in Latin
simple framework for obtaining music publishing America. It provides 60,000 tracks from over 70 local
rights for legitimate online services. It is hoped that labels and powers a wide variety of portals including
such an agreement can be reached early in 2004. MSN, Americanas.com and Compaq. The service
allows for downloads, streams and on-demand CDs.
Summary of expected launches in 2004 During 2004 iMusica expects to broaden its existing
US Based Europe Based Elsewhere catalogue and regional operations.
Hewlett-Packard iTunes (Europe) Puretracks
(French-version, Canada) “We at the Orchard are very encouraged by
Microsoft Napster 2.0 (Europe)
iTunes (Canada) the new legitimate download services.
Amazon Coca-Cola (UK)
MusicNet (Canada) These new services are the backbone of our
MTV Networks PlayLouder (UK)
future business plans; they offer the perfect
Napster 2.0 (Canada)
Rhapsody (UK)
inventory solution and our product is always
ninemsn (Australia)
Phonoline (Germany)
in stock. For an independent, that is a
iTunes (Japan)
T-Online (Germany)
significant accomplishment.”
iBIZ (Taiwan)
eMusic Kft (Hungary) Scott Cohen, Founder and President, The Orchard
(largest distributor of non-major label music)

5 IFPI ONLINE MUSIC REPORT 2004

 Building a legitimate download business: what the unauthorised services don’t have to think about
Quality libraries of music repertoire need to be built from scratch. Hundreds of thousands
Digitising content
of music tracks and supporting artwork need to be digitised to a high quality specification.

Clearing sound recordings for online distribution can involve complex business
considerations with a variety of parties. The sound recording rights need to be cleared with
Rights-clearance
record companies and the rights in the songs separately licensed with relevant music
and re-negotiations
publishers or collection societies. Rights in many recordings may need different licences in
different territories.
High-performing Legitimate services are accountable to consumers and therefore need to ensure that
technologies download times are minimised for the range of consumers’ connection speeds.
‘Digital rights management’ systems are critical to legitimate services. Once a track is
Consumer-friendly
downloaded, consumers need to be able to store and use that track without violating
DRM and establishing
copyrights. However there are complex business negotiations and DRM technologies
‘usage rules’
behind such ‘usage rules’. All these require clever and costly technological solutions.
Both content and operating systems need to be virus- free and reliable, requiring a range
Virus free services
of supporting technologies.

Secure payment Legitimate services must be paid for. Secure payment and billing systems need to be put
systems in place, so that people can pay for music online using a variety of available means, from
credit cards to pre-pay cards and special accounts.

“2003 was the year we proved that consumers would pay for digital music -
it is absolutely clear there is a market. This has injected a huge confidence-booster to labels,
to investors and everyone who is looking at it as a business to get into.”
Ed Averdieck, Sales and Marketing Director, OD2
(European online music distributor)

Building a legal online music market Household broadband penetration

- a complex business
2002 2003
Record companies and many other parties have
Netherlands
been working together for over five years to
create viable online business models. However, this Denmark

has proved an incomparably more complex Spain

undertaking than the setting-up of unauthorised UK

distribution models - a fact that is often
Italy
misunderstood outside the music industry
France
(see table above).
Germany
Two further strategic issues have combined to
Japan
slow down the development of the digital music
Taiwan
market to date:
South Korea
> Widespread piracy on the internet has provided
USA
unfair competition to legitimate services, thereby
Canada
significantly increasing their business risk.
0% 10% 20% 30% 40% 50% 60% 70% 80%
> The relatively low penetration of broadband
Source: Understanding & Solutions
internet services in many countries until
late 2002/early 2003 markedly limited the growth
of legitimate online music. This is changing as
broadband penetration expands.

IFPI ONLINE MUSIC REPORT 2004 6

 IFPI facilitates one-stop shop for The agreements are ground-breaking because, for the
first time, streaming services can obtain licences that
Simulcasting & Webcasting cover all the record producers’ rights with respect to a
The industry is adapting its procedures in order to multitude of territories (as of January 2004 the
simplify substantially the licensing of internet music Simulcasting Agreement covered 36 countries) and a
distribution, particularly streaming. large proportion of the world repertoire from their
local producers’ collecting society.
IFPI developed and announced two important
one-stop licensing initiatives in 2003 to facilitate
the roll out of legal streaming services. These Emerging business models still evolving
initiatives - reciprocal agreements between record Business models offering both subscription and à-la-
producers’ collecting societies - enable the carte options with a range of single track downloads,
participating societies to grant blanket licences album downloads, track streaming and customised
to music service providers clearing producers’ streaming services, are thriving in the US and now
rights and covering repertoire in all of the growing in Europe (see chart below). There has been
participating territories. a clear trend so far from the predominant
subscription model to the à-la-carte model - the
The Simulcasting Agreement covers record simple format pioneered by iTunes.
producers’ rights to the simultaneous and unaltered
transmission of free-off-the-air broadcasts via Other innovative business models are also springing
the internet. The Webcasting Agreement, announced up, such as Wippit and PlayLouder Music Service
in November 2003, covers services that stream Provider (MSP) in the UK. Wippit is the world’s first
sound recordings as part of programmed content, subscription-based peer-to-peer (P2P) music service
exclusively over the internet. The agreements do not to secure needed licences, offering subscribers
cover the licensing of download services or individual (approximately 5,000) access to music files for an
on-demand streams. annual fee.

Major services’ business models

Service Core Offer Payment Method Unique Offering

iTunes à-la-carte downloads pay per song, audiobooks, share music samples via
music allowance accounts, email, exclusive tracks and on-demand
gift certificates sold at videos, customised playlists, transfer
iTunes and Apple Stores to portable player (iPod)

Napster 2.0 track streaming, monthly subscription for playlist recommendations and sharing,
customised streaming, Napster Premium, pay per exclusive material (on-demand videos,
à-la-carte downloads song, Napster Card sold at free online music magazine, exclusive
over 14,000 retailers tracks, in-studio performances), transfer
to portable player

Rhapsody track streaming, monthly subscription, access music from any PC

customised streaming with additional charge
for CD burning

MusicMatch track streaming, one-off fee for MusicMatch transfer to portable players,
customised streaming, Jukebox Plus, pay per song personalise CD package, new
à-la-carte downloads thereafter music recommendations based
on customer playlist

OD2 track streaming, pre-payment credits discounts for products paid

(branded by à-la-carte downloads (activities such as downloads with credits, transfer to portable
HMV, Fnac, and streams have different player, news and special features
MSN, etc.) credit value), pay per song, with artists
subscription

7 IFPI ONLINE MUSIC REPORT 2004

PlayLouder MSP plans to offer broadband access > Surveys show that an increasing number of
bundled with high-quality music services - whilst people are using or willing to use pay-for
paying royalties to rights owners, songwriters and music services. In September 2002, an
publishers - and allowing subscribers to freely independent study4 of online music fans
exchange licensed music for a monthly fee. The concluded that 36% of peer-to-peer users
service is currently under trial and it is expected to across Germany, France, Sweden, Spain and Italy,
launch in the first quarter of 2004. Both services are were willing to pay for music. In a study of
experimental and appear to be aimed at specific visitors to its online sites in Europe about
niche markets. downloading, MTV discovered in summer
2003 that a third of online music fans - mostly
Legitimate online music will also benefit new, under 25’s - were willing to purchase downloads.
independent services, as well as artist sites that offer
paid-for content and build on communication > The music industry will be a beneficiary of
between artists and music fans. During 2003, a the growing practice of paying for products
number of artists have had considerable success and services online. In December 2003, the
offering downloads on their branded sites, including American Express Retail Index on internet
Madonna, Muse, Ben Folds and others. shopping found that 54% of Americans
were planning to use the internet to gift shop,
Growth opportunities for legitimate with CDs and DVDs the second most popular
online music category (82%) behind clothing (85%).
The opportunities the internet presents to the music > The uptake of broadband services has
industry are clear: demonstrated that consumers are willing to
pay a premium to improve their access to
> The demand for music is strong, and the internet
the internet. As broadband penetration expands,
is proving to be a popular medium to access it -
ISPs are increasingly looking to content such
especially for younger consumers. The prospect of
as music to attract and retain customers.
converting unauthorised online music distribution
In Europe, Tiscali, MSN, TDC and BT-Yahoo
into legal music downloads represents an
have all pursued this strategy. In the US,
important commercial opportunity. An IFPI survey
AOL (through MusicNet on AOL, Sessions@AOL
conducted in Australia, Germany, UK, USA and
and First Listen) has done the same - with
Canada showed that total music consumption
considerable success.
(legitimate physical formats plus all digital
downloads) actually increased by 30% between
1997 and 2002. Total online consumption of
music - the vast bulk of it unlicensed - amounted
to approximately eight billion tracks in those “Our experience as a pan-European
countries alone - one third of all songs consumed. ISP tells us that consumers are moving
away from the free internet access
Demand for music: track consumption model, towards the paying model based
on high quality connections like broadband.
Physical tracks Downloads
There are parallels to be drawn between
Tracks consumed (millions) this evolution and content distribution.
25,000
Music fans will also be attracted to
quality - and we are combining our
20,000 strengths with the music industry to
supply something which no unauthorised
15,000 online service can ever provide: a
comprehensive, safe, entertaining online
10,000 music experience.”
Sergio Benoni, Head of Music, Tiscali (ISP)

5,000

0
1997 2002
Source: IFPI survey conducted in Australia, Germany, UK, US and Canada. 4. Jupiter Research - Online Music in Europe, 2002.
Singles = 2 tracks; CDs and cassettes = 12 tracks

IFPI ONLINE MUSIC REPORT 2004 8

 Changing music consumption Music to mobile networks and devices
- How do you want to listen? Strong evidence emerged in 2003 that mobile
networks and devices could become a key
> À-la-carte download - most services allow users
distribution platform for music over the next few
to pay a single fee for one song, which they
years. The majority of activity in the sector so far has
download to their PC hard drive or to a portable
been promotional partnerships between mobile
music player.
operators and music companies, allowing mobile
> Tethered download - these allow consumers to subscribers to stream and sample new music as well
‘rent’ tracks for a given period of time. These as offering personalised artist-related material via the
tracks are non-transferable to portable music handset. The ring tones and mobile entertainment
players, but sit on the consumers’ PC hard drive market first emerged in Japan and South Korea,
until they ‘time-out’ or the subscription ends. where growth has been rapid.
These have been popular on European services
Activity has spread throughout Asia and to Western
and are a good way for consumers to preview
Europe, and more recently reached the US. As
songs before they decide to buy.
3G technology and handset penetration develops,
> Download an album - a popular option that new services including music content, and more
enables consumers to pay a single fee for specifically music downloads, are expected to launch.
one album.
In the latter part of 2003, mobile operators, record
> Download a bundle - some services enable companies and music-related companies (such as
consumers to download a ‘playlist’ that has been MTV) formed a number of partnerships that lead to
suggested by other consumers, or perhaps the a wave of new services. In the UK, O2 launched
artist. Such ‘bundles’ may also include video its download to mobile service in November 2003,
content or artwork/photography. allowing mobile users to download music and
transfer files to a player device manufactured
> Streaming - allows the consumer to listen to a by Siemens. In the US, Warner Music is the third
song once and is very low cost. Streaming is ideal major record company to make material available
for listening to exactly what you want without for Sprint Music Tones, a ring tone service, following
having to pay to own a copy of the song. It is the a Sony Music deal in July 2003 and a Universal
preferred option for consumers who want to deal in January 2004. AT&T Wireless is set to launch
explore a broad range of songs, artists or genres. its mMode service in 2004 using the handset
> Customised streaming - these services offer as a channel for clips and full tracks downloadable
subscribers the ability to compile their to the PC.
own programme of tracks based on their Music to mobile will be boosted in 2004 by:
favourite genre, artist, or choose an already
compiled program. > Intensified activity by manufacturers and network
operators in search of new business opportunities
from entertainment content, met by the
development of innovative products by music,
film and game producers.

“MSN Music Club is growing in popularity > Developments in 3G mobile technology enabling
and this is to a large extent due to the delivery of video to portable devices and the
increasing number of the very latest A-list proliferation of Wi-Fi (wireless fidelity) ‘hot-spots’
releases that are available as digital with broadband capacity.
downloads. This is what large proportions of
the online audience want, and it clearly > Emergence of media-capable handsets such as
indicates to us that legitimate digital music the Nokia 7700.
services will have a mass market.”
Geoff Sutton, General Manager, MSN Europe (ISP) > The development of wireless DRM enabling
distribution of content across mobile operator’s
networks whilst protecting copyrighted content.

9 IFPI ONLINE MUSIC REPORT 2004

The Fight Against Online Music Piracy
The lure of ‘free’
Although the development of an international online > Commercial services. A number of commercial
music market is now well underway, its progress has services make money from their own copyright
been hampered by unfair competition from infringements and those of their users. Some
illegitimate sites and services - that is, from online charge users directly for access to unauthorised
music piracy. A host of unauthorised internet sites copies or streams of music. Others (like
and peer-to-peer services sprang up before legitimate peer-to-peer services) claim not to copy
services had a chance to set up, seducing many music music themselves, but encourage and assist
lovers with the lure of ‘free music’. users to steal music, and make money from
advertising, spyware and other businesses built
Why call them ‘unauthorised’? Because these
on the back of user infringements.
are sites and services that enable users to distribute
and exchange digital files - not just music but > Peer-to-peer (P2P) activities. These involve
also film, computer games, and pictures - without direct transfers of music files and other
paying for them. Those who create the music and material between users (‘peers’), typically
other products that are exchanged in this way through a service that encourages and assists
have not agreed to their distribution and do not see the activity. Users not only download music
a penny in return. files from other peers’ computers, but typically
make files available for transmission to
Some say the unauthorised services got their head
large numbers of other users.
start from an ingenious concept supported with
clever technology. The truth is that the killer idea > Increasingly sophisticated techniques. As
behind unauthorised music distribution is simply internet enforcement has ramped up, those
profiteering from other people’s music. These services engaged in infringement have developed
ignore all the requirements of a proper music increasingly devious techniques to avoid
business, and thus can operate with very little set-up responsibility for their actions. These have
or maintenance costs. They have achieved a system involved encrypting various communications,
where they make millions of dollars from selling using third parties’ internet accounts,
online advertising and bundled software on the back moving infringing files off-shore, and hiding their
of music taken from someone else. own identities through various technical means.

This has hurt sales of music worldwide, causing artist

rosters to be cut and thousands of jobs to be lost,
The size of the problem
Online piracy takes two dominant forms: distribution
from the music shop assistant and the sound
of files from unlicensed internet sites known
engineer to the band manager, songwriter and music
as web and FTP sites; and peer-to-peer traffic
journalist. Anyone who thinks that his or her illegal
on file-swapping services such as Kazaa,
file-sharing or other unauthorised internet activity
Grokster, Gnutella, WinMX and others.
cannot affect sales is mistaken: in fact any such
person’s activity, combined with everyone else’s, has IFPI estimates that the number of infringing music
a huge aggregate effect. files on traditional web and FTP sites on the
internet remained flat at approximately 100 million
The nature of the problem during 2003, while unauthorised files on
Unauthorised use of music on the internet takes a peer-to-peer systems dropped by approximately 20%
number of forms: from their peak in April 2003 to approximately
800 million by the year’s end. This has resulted
> Web, FTP and link sites. The ‘traditional’ forms
in an estimated 900 million infringing music files
of internet infringement are still popular in many
on the internet as of January 2004.
countries. Those involved may or may not profit
from the activity, but often generate advertising
revenue, user traffic and even notoriety for
their activities.

IFPI ONLINE MUSIC REPORT 2004 10

 Infringing music files on the internet FastTrack also appears to have experienced declines
in use outside the US during 2003, measured by
Apr 02 Apr 03 Jan 04
the number of users and files that its system reported
Web & FTP files 100 million 100 million 100 million
to be online during off-peak (i.e. overnight)
P2P files 500 million 1.0 billion 800 million
hours in the US - times when European and
other non-US usage would be the highest. Between
Total 600 million 1.1 billion 900 million June and December 2003 the FastTrack network
experienced a drop of approximately 28%
Infringing in concurrent files available at off-peak US
Web & FTP 200,000 200,000 200,000 times, which was nearly the same drop seen
sites in peak US times during the same period. This
P2P users offering indicates that the widespread reports of legal actions
infringing files 3.0 million 5.0 million 6.2 million
against US ‘uploaders’ had a deterrent effect on users
(concurrent) of the FastTrack network in other countries as well.
Source: IFPI There appears to have been some growth in
The most substantial change has been the drop in other regions and on other peer-to-peer systems
files on the peer-to-peer network FastTrack (Kazaa, where litigation has not been focussed so far,
Grokster, iMesh) that began in April 2003 and but to date this has been outweighed by the decline
continued as the US recording industry group (RIAA) in the files available on FastTrack, by far the largest
made public announcements of instant messaging, peer-to-peer network.
litigation warnings, and legal cases against users
distributing large quantities of music files over the The impact: unauthorised file-swapping
system. The number of simultaneous files on the hurts sales more than it promotes them
FastTrack system dropped 33%, from approximately It is a frequent misconception that illegal internet
900 million in April 2003 to approximately 600 distribution promotes legitimate sales of music.
million in January 2004, as reported by the FastTrack In fact, studies in 2002 in five major music markets -
client software itself. US, Canada, Germany, Japan and Australia - showed
that illegal downloading and burning have a clear
Concurrent files on FastTrack P2P service (m) negative impact on consumers’ music purchases.
1,000,000
900,000
On average, 27% of respondents among all the
800,000 surveys stated that their spending on CDs and
700,000 similar music purchases had decreased since they
600,000 began downloading illegally distributed music,
500,000
compared with 15% who said that their spending
400,000
300,000
had increased.
200,000
Impact of downloading & burning on sales
100,000
0
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Bought more Bought less
02 02 02 03 03 03 03 03 03 03 03 03 03 03 03 04
35%

31%
This trend has been confirmed by independent 30% 29% 29%

research firms. According to Nielsen NetRatings5, 26%

27%

there was a 53% drop in use of the FastTrack 25%

22%
network in the US between June and December 19%
20%
18% 18%
2003. Similarly, a report by Pew Internet & American
15%
Life and ComScore Media Metrix6 found that 15%
13%
usage of leading peer-to-peer services (Kazaa,
10%
WinMX, BearShare and Grokster) declined in 8%

November 2003 from a year earlier. The user 5%

base of Kazaa dropped by 15% and Grokster
fell 59% during that period, according to the report. 0%
USA Canada Australia Japan Germany Average
2002/03 2002/03 2002 2002 2002
5. Internet Application Continues To Decline, September 2003. Sources: RIAA/Hart Research, CRIA/Solutions Research Group,
6. America’s Online Pursuit, December 2003. ARIA/Quantum Market Research, RIAJ, Gfk.

11 IFPI ONLINE MUSIC REPORT 2004

The industry response file-swapping, digital copying can then be
transformed into unlimited distribution at the
The record industry sharply stepped up its response
touch of a button. DRM protects against this,
to the growth of internet piracy in 2003. Initiatives
while allowing online stores to offer the consumer
took place on four fronts:
a wide range of options including streaming,
1. Technological protection of copyrighted music. track rental, track purchase or ‘burn to CD-R’.

2. Public awareness programmes highlighting Copy control technologies (CCT) are also
the illegality of file-swapping and the damage being used by record companies. These have already
it inflicts on people across the music proved instrumental in the DVD Video format, as well
sector; combined with the promotion of legal as in computer games and software. But CCT is now
alternative services. evolving further than simply preventing copying.
3. Co-operation with ISPs. Despite some initial technical and legal hurdles, by
integrating DRM flexibility with CCT protection,
4. Litigation directed both at unauthorised file-
flexible usage of the protected CD is now becoming
swapping services and at hundreds of individuals
possible - for example by allowing the ‘burning’
illegally offering and distributing substantial
of a protected copy, or by allowing the transfer
quantities of music files online.
of DRM-protected music files from the CD to
1. Protection through technology a PC jukebox or portable digital player.
As the technology used to create and play music Damage control
evolves, so does the role of technology in protecting
music against unauthorised copying and distribution. Among other things, legitimate technologies now
allow options such as making alternative (‘decoy’)
Music must be protected in two distinct ways. Prior files available on otherwise infringing systems - a
to release, recordings need to be handled securely to self-help measure that some record companies
avoid early leaks. After release, music must be have taken. Technology itself thus can provide
protected from unauthorised mass copying while important tools for increasingly effective action
giving consumers a wide range of options for against infringement on the internet.
enjoying it.

Pre-release security “As a retailer I feel very strongly about the

effect internet piracy is having on music
Increasingly sophisticated security is needed to stores and their employees in Canada and
protect against unauthorised leaks - that is, the indeed around the world. Stealing music on
stealing and distribution of recordings on the internet the internet is no different from stealing a
prior to their planned release. Pre-release piracy can pair of shoes, and we have to carry this
force an earlier than planned release, disrupt tour argument to its logical conclusion. The social
dates and marketing or advertising plans, hurt the all- contract on which our society is based is
important initial album sales and compound the rooted in respect for the law.”
losses due to substitution by unauthorised copies. Natalie Lariviere, President and CEO of Groupe Archambault Inc.
(Canadian retailer)

Leaks of albums from bands such as Metallica and

Korn led to their release dates being advanced by 2. Public awareness campaigns
several weeks, because the leaked copies circulated
The music industry conducted an intense global
were of poor quality with the wrong mixes and in the
information campaign in 2003, with the aim of
wrong order.
explaining the illegality of unauthorised online music
Post-release protection distribution. These activities are designed to highlight
how new legal online services are developing, as well
Digital Rights Management (DRM) technologies are as how online copyright theft hurts people working
critical to the development of new music services across the music sector. Campaigns have ranged
because without them music content is vulnerable. It from music coalition websites, public relations and
is possible to burn as many as 200 albums onto advertising campaigns, university and school projects
multiple CD-R discs in less time that it takes to record and messages sent directly to people using
a single C90 cassette. Combined with internet unauthorised services.

IFPI ONLINE MUSIC REPORT 2004 12

 These campaigns, coupled with the launch of
extensively publicised lawsuits against major
copyright offenders in the US, have had a
decisive impact in raising public awareness on the
issue internationally.

The new figures released by IFPI show that the

general public has a very high level of awareness that
unauthorised file-swapping is illegal, indicating that
the industry’s public education activities have indeed Singapore’s ‘Keep the Music Alive’ website and educational video package

had an effect.
Other countries took out advertising to reach
Multi-media campaigns consumers, including:

Summer 2003 saw an alliance of music sector > Japan, where five other industry groups joined the
groups launch www.pro-music.org (see page 18), recording industry’s ‘Respect Our Music’ ad.
a website aimed at promoting legitimate online
music services and confronting the myths > Belgium with their ‘Please Don’t Steal Music. Just
surrounding online music piracy. The website is because you can doesn’t mean you should.’ ads.
supported by six international organisations - FIM,
> Canada with two recent advertising spots ‘Virus’
GIART, ICMP-CIEM, IFPI, Impala and GERA-Europe -
and ‘Jimmy’s Room’.
representing musicians, publishers, performers,
artists, major and independent record companies, Information to students and employees
producers and retailers across the music industry.
A national version of pro-music has been launched File-sharing activities have become a serious concern
in Germany, and in France with the support of to companies and universities as peer-to-peer
the French government, with other countries applications quickly consume their bandwidth. There
to follow suit. are reported examples in universities around the
world where virtually all of the institutions’
Many other countries have launched national bandwidth had been taken over by peer-to-peer
websites, along with advertisements, CD inserts or traffic, affecting those who depend on these
education tools. Canada’s ‘Keep Music Coming’ resources to study and work. For example, Lund
campaign, for example, uses all these media to University in Sweden reported in April 2003 that it
inform young Canadians that when people buy had blocked all access to peer-to-peer ports, given
music, they help artists create more music and give that peer-to-peer traffic had slowed its university
new artists a chance to be heard. network dramatically.

The ‘Get It Right!’ educational campaign of IFPI’s Copyright Use and Security Guides were
the Netherlands’ broad-based copyright coalition - mailed to thousands of companies, government
involving the Ministry of Justice and representatives departments and educational institutions in 21
of copyright industries - aims to teach the value countries in early 2003. They call on administrators
of copyright to 14-15 year olds. The education of computer networks within government, private
pack, which includes a video with Dutch rock companies and educational establishments to advise
band Di-rect, a magazine and an interactive website, employees and students against copyright misuse on
helps teachers introduce the subject of copyright to computer systems, in particular copying and
their pupils by taking them through the process by uploading copyright material to the internet without
which certain products like books, newspapers, film, permission from the rights owner. The guides advise
websites and music are created. these groups of the security and legal risks they run
when copyright material is copied and transmitted
The Singaporean ‘Don’t let the Music Die’ video has
without permission.
been distributed to almost 200 educational
institutions, and clips from the video broadcast on The distribution of the brochures to academic
television. Singapore’s largest broadcaster has also institutions was the start of a greater co-operation
run television and radio commercials as part of the between the music industry and universities around
‘Keep the Music Alive’ campaign. the world.

13 IFPI ONLINE MUSIC REPORT 2004

 Record industry groups in five other countries -
Australia, Austria, Canada, Denmark, Germany
- have sent nearly two million instant messages
to peer-to-peer users since August 2003.

Following is a sample of the instant messages sent:

> Austria: ACHTUNG! Sie bieten geschützte

Musikfiles ohne Zustimmung der Rechteinhaber
The Copyright Use and Security Guide brochures
über eine Internet-Tauschbörse an…

> Australia: INTERNET FILE SHARING IS THEFT. IT

Many schools and universities have taken steps to
ROBS ARTISTS AND SONGWRITERS OF INCOME
discourage illicit file-swappingactivity, imposing
AND REDUCES THE AVAILABILITY OF NEW
bandwidth limits, sending warning notices, using
MUSIC. Copyright owners are aware that you
filtering and other technical tools, and disconnecting
may be offering copyrighted music from your
users that trade copyrighted music unlawfully.
computer via a file-sharing network…
In Italy, schools have been requested by their regional
> Canada: WARNING: It appears that you are
educational authorities to adopt copyright protection
offering copyrighted music to others from your
measures, which include technical tools to prevent
computer…
the use of unauthorised music files on the
institutions’ servers. > Denmark: Antipiratgruppen har konstateret, at De
øjensynligt er i færd med at kopiere ophavsretligt
Most recently, universities in the US have begun
beskyttede lydoptagelser…
giving crash courses in copyright law and at least one
has already begun to offer legitimate music services > Germany: Warnung wegen Urheberrechtsverletzungen.
along with cable television, free newspapers, and Hallo Musikfan, Sie bieten anderen Nutzern der
other perks of campus life when students begin their Tauschbörse Musik an…
university term.

Instant messaging: reaching file-swappers directly

3. Co-operation with internet
operators for high-volume take-down
Users illegally distributing music online can also Much of the industry’s internet anti-piracy work takes
be reached directly. For several months the place as a co-operative effort with ISPs. This is in the
recording industry has been sending instant interest not only of the music business but also of
messages over peer-to-peer systems to users who ISPs, who do not want their systems used for
appear to be offering unlicensed music. These activities that are illegal, that clog the internet service
warn users that they should not engage in or subject it to security problems.
copyright infringement and explain why using lawful
copies of music is so important. Most ISPs’ terms of service expressly prohibit their
customers from engaging in copyright infringement,
or from running servers (such as peer-to-peer servers)
from individual accounts. ISP agreements also
typically provide that they may remove, block or take
other action to stop such activities, and co-operate
with enforcement efforts to do so.

For many years, IFPI and more than 25 national

groups have notified ISPs when unauthorised music
Since April 2003, the RIAA has sent approximately files or other infringing activities appeared on those
18 million instant message warnings to peer-to-peer ISPs’ services. In the vast majority of cases, they have
users in the US. Virtually all of the users sued by voluntarily blocked or taken down the sites or files
RIAA for making infringing copies of recorded identified as infringing. Given that no legal
music available on peer-to-peer services had proceedings or other formal procedures are required,
been sent such a message. this has proved an efficient and cost-effective way of
removing high-volume infringing material.

IFPI ONLINE MUSIC REPORT 2004 14

 The number of music files removed from the internet Legal action against services and unauthorised sites
and infringing sites taken down thanks to voluntary
action by the ISPs once notified continues to increase Cases against unauthorised sites are brought
year-on-year. in countries all around the world, as the
laws everywhere already provide a basis for
In 2003, IFPI secured the take-down of approximately stopping unauthorised internet copying, transmission
41,000 unauthorised web and FTP sites, 1,050 peer- and/or distribution.
to-peer indexing servers, and 1.6 billion unauthorised
copies of recorded music from the internet in 101 While such cases may be difficult or prolonged,
countries worldwide. they are having an overall deterrent effect. The
following are examples of the types of cases that
have been brought:
Infringing files removed from the internet
2001 2002 2003 Services

Files taken down 700 1.3 1.6

> MMO peer-to-peer service (Japan). The final
after ISP notices judgement entered in December 2003 found
million billion billion
this service itself to have infringed. An
injunction was entered against the service, and
Web and FTP compensation awarded to the record company
28,000 38,000 41,000
sites taken down and music publisher parties.

Source: IFPI > Soribada peer-to-peer service (Korea). The court

entered an injunction in July 2002 requiring this
4. Litigation raising awareness and service to stop letting users download the plaintiff
record companies’ copyrighted recordings.
achieving deterrence
Persistent online infringement > Weblisten (Spain). First-and second-instance
courts have entered injunctions against Weblisten
Litigation has proved highly effective when (subject to appeal) for unauthorised use of
cooperation and public awareness are not enough to plaintiff record companies’ recordings in its
reduce unauthorised online music activities. . streaming and download service.
Examples of potential targets for litigation are:
> MP3.com, Aimster, Kazaa, Grokster (US). The
> Unscrupulous businesses that may have a strong US industry has brought a range of litigation
financial incentive to conduct online infringement case against peer-to-peer and other online
or encourage users to do so. Such services services that have not secured licences for
sometimes will not stop infringements or act copyrighted recordings of music.
responsibly unless forced to do so by law
enforcement authorities or the courts. Web, FTP, Link Sites

> Unauthorised web, FTP or other sites which are > Mp3WmaLand (Australia). The criminal court
overtly commercial but which may for ideological convicted three individuals in November 2003
reasons spend substantial amounts of time, for running a complex web of ‘free’ download
money and effort to maintain pirate sites, disguise sites offering an estimated AUD 60 million in
or move them to avoid the law, and resist take- recorded music.
downs or legal actions to stop them.
> Bruvik/Napster.No (Norway). In this case
> Individual users who don’t get the message. The brought by recording industry and music
idea of taking or distributing someone else’s publisher plaintiffs, the site was found liable
music for free on the internet is a seductive one in January 2003 for offering ‘links’ to
that may need a tougher deterrent response. Even unauthorised copies of recorded music
users fully aware that online infringement is (no relation to the original Napster
stealing may believe that they will never get company or case).
caught or face any real consequences, and thus
persist in illegal behaviour.

15 IFPI ONLINE MUSIC REPORT 2004

Actions against individual infringers Although their primary intent was to create a
deterrent via public awareness, the US legal
Litigation against high-volume individual distribution actions have also helped give breathing room to
is an important option of last resort in the fight legitimate online services. And there appears to
against internet piracy. Civil or criminal lawsuits have been a significant reduction in the levels
against commercial, persistent or major individual of online piracy in the wake of the litigation
infringers provide a crucial public deterrent. Even campaign. At the same time subscriptions to
some of the biggest critics of the record industry have legitimate online services in the US have risen sharply.
admitted this:
New IFPI survey shows the deterrence effect can
Mr. [Joe] Kraus [of DigitalConsumer.org] agreed work internationally
that existing laws should be enforced suggesting
that some high-profile prosecutions of major In December 2003 IFPI commissioned a survey
violators could “make consumers feel more to determine the level of public awareness
vulnerable” and more likely to seek out of illegality of distributing or sharing unlicensed
legitimate sources of online content. music files over the internet, awareness of legitimate
‘Customers, Not Technology, Seen as Key for Digital Music’. T R Daily. online music services, and support levels for
[Fred] Von Lohmann [of the Electronic Frontier legal action. Research firm GfK conducted the
Foundation] said it was “not such a radical survey using random sample computer assisted
statement” to say piracy suits would be telephone interviews. The sample sizes were 1,000
more appropriately aimed at consumers than in Germany, France and UK and 500 in Denmark.
enabling technology companies… A few The main findings and conclusions from the survey
targeted lawsuits would get the message across. results are:
‘Copyright’. Washington Internet Daily.

> An average of 66% of surveyed respondents

The US record industry in 2003 began to enforce the
in the four countries are aware that unauthorised
copyright law against individuals. These were not
file-swapping is illegal. This is even higher
people who had casually downloaded a few files for
than the corresponding levels of awareness in
their own personal or private use. They were
the US (64%) in December 2003, after three
individuals alleged to have copied hundreds or
waves of US lawsuits against individuals.
thousands of music files onto their personal
computers and opened their directory of files to the > More than half the people surveyed (54%) in
internet for copying, transmission and distribution to the four countries support the industry’s legal
potentially millions of anonymous strangers. actions against major internet infringers.
Support is highest in Denmark (59%) and
Lawsuits against major ‘uploaders’ of copyrighted
Germany (60%) where awareness of the
music - a successful deterrence strategy
illegality of file-swapping is also greatest. In
The lawsuits against substantial ‘uploaders’, first France and the UK, the support figures are 49%
launched in September 2003 in the US, have got the and 52% respectively, with almost a quarter
message across to a vast audience in the US and of consumers undecided whether to support
abroad. Awareness of the illegality of unauthorised the legal action.
file-swapping in the US rose from 37% before the
> Litigation has played a critical role internationally
lawsuits to 64% in December 2003.
in improving the public’s awareness that
The message has reached companies and universities, file-swapping is illegal. Awareness of illegality
as well as children and parents. There is growing of file-swapping is higher among people who
awareness, especially in the US, that the ‘sharing’ have heard that the industry has taken legal
activity sometimes portrayed as harmless or even actions against file-swapping services and
respectable by peer-to-peer services is in fact illegal users. An average of 59% of people surveyed
and raises a raft of other concerns about security and were aware of announcements about such
other content of such services. legal actions.

IFPI ONLINE MUSIC REPORT 2004 16

 > Half of all respondents (53%) think that the Litigation as a global strategy
prospect of legal action by music copyright
holders would make illegal file-swappers stop or Litigation has proved a successful strategy that
reduce their activities. is increasingly likely to be needed internationally.
As growing broadband penetration spurs an increase
> Awareness of legitimate alternatives to file- in unauthorised music distribution, it is likely that
swapping is still low, at 23% among all there will be lawsuits against major internet
respondents. The 16-29 year olds are however distributors internationally in 2004, similar to those
more aware; 38% are aware of legitimate online filed in the US.
music services.
Several countries have already taken selected cases
against individuals offering music files without
Awareness of illegality of file-swapping
authorisation. These include:
Legal Illegal Don’t know
> Denmark. Civil claims against 150 peer-to-peer
14% 13% users in December 2002.
23% 28% 20%
> Germany. Criminal raid against peer-to-peer
uploader and server operator in April 2003.

> Italy. Criminal raids of 75 peer-to-peer uploaders

73% 74% 66%
62% 57% and server operators in May 2003.

> Switzerland. Criminal conviction of uploader on

peer-to-peer service, May 2003.

15% 13% 13% 15% 14% > Taiwan. Criminal prosecutions of peer-to-peer
users pending.
UK Denmark Germany France Average

Question: “As you may know, there are technologies available on the internet > Korea. Criminal complaints filed against 100 peer-
that individuals can use to distribute or share music from their computer to other
people for free. From what you know about the current laws, is it: 1) legal all the to-peer users, December 2003.
time 2) legal most of the times 3) illegal most of the times, 4) illegal all thetime,
5) Don’t know.”
The industry’s willingness to bring lawsuits, alongside
its educational and commercial initiatives to promote
Level of support for legal action good commercial and legal online alternatives,
should not be doubted. The recording industry has
Supportive Unsupportive No view
already demonstrated that is prepared to enforce its
18% 12% rights against major infringing uploaders on the
25% 20% 19%
internet where necessary.
28%
23% 27%
23% 31%
“We at Fnac have the ambition to become a
major player in the digital distribution of
music. We are convinced that the market is
59% 60% now ready for legitimate download services
52% 49% 54% and there is evidence to support this.
However for the market to really take off
it is crucial to fight against piracy - largely
UK
responsible for the decline in music sales - as
Denmark Germany France Average
well as giving consumers a really attractive
Question: “If you were to hear news that the recording industry in (this country)
is taking legal action against (nationality) individuals illegally sharing substantial and efficient service.”
amounts of copyrighted music online, would you say that you are: 1) Supportive Christophe Cuvillier, Directeur General International et
2) Unsupportive 3) No view.” Developpement, Fnac (French retailer)

17 IFPI ONLINE MUSIC REPORT 2004

 “Making available
copyrighted music without
permission on the internet
- that means the bulk of
all file-sharing - is illegal
in virtually every country
of the world. Those who
ignore this legal reality
may have to face the
consequences.”
Jay Berman, Chairman & CEO, IFPI

visit: www.pro-music.org

Email [email protected] with details of planned or existing legitimate online music services
 Published by IFPI, January 2004
Copyright © 2004, International Federation of the Phonographic Industry (IFPI).
All data, copy and images are subject to copyright and may not be reproduced,
transmitted or made available without permission from IFPI.

For further information contact: IFPI Secretariat, 54 Regent Street, London W1B 5RE
Tel: +44 (0)20 7878 7900 Fax: +44 (0)20 7878 7950 Email: [email protected] Web: www.ifpi.org

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