The end of music as we know it if file sharing continues.

26 January 2010

The end of music as we know it if file sharing continues.

Spain has been cited as an example of a country which does not have laws in place to prevent illegal downloads and the sales of albums by local artists there have fallen by 65 per cent in five years.

Rob Wells, Senior Vice President, Digital, at Universal Music Group said Drastic action needs to be taken in order to save the Spanish music industry.'

This is because global stars such as Lady Gaga, who topped the digital download chart of 2009 with 9.8m downloads for her single Poker Face, are regarded as more secure investments.

In the UK the IFPI said it was supportive of the proposed Digital Economy Bill, which includes legislation to cut off persistent file sharers.

'If there is a risk of kids losing their internet connection, they will stop,' said Mr Kennedy. He described the loss of the recent court case against BitTorrent website Oink as 'a terrible disappointment' and an indication that current laws in the UK are 'out of touch with where life is'. He expressed support for the bill's controversial clause 17, which would give the Secretary of State power to make changes to copyright laws.

However, companies such as Google and Facebook believe that the ability to make fundamental changes are too broad and could stifle innovation. Despite the stranglehold the industry considers itself to be in, legitimate music services are starting to pay off, the IFPI believes.

Global digital revenues increased by 12% in 2009. In the US, iTunes is selling more music than Walmart and digital sales account for 40% of the industry’s revenue.

Spotify has been the most successful financial model and the Orange monkey service, a joint venture between Universal Music Group, 4Music and Orange, had acquired 110,000 subscribers since its launch in July 2009. The pay as you go service offers free access to music in exchange for a regular top up of at least £10 a month.

Jane Coyle is a trainee solicitor at Lawdit and can be contacted at jane.coyle@lawdit.co.uk