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Digital Music Sales Soar as BPI Slams Slow UK Pace of Tackling ISP Piracy

Posted: 02nd Jan, 2012 By: MarkJ
uk music piracyThe British Phonographic Industry (BPI), a trade body that claims to represent the UK music industry, has once again warned of falling investment and lost jobs because the Government is allegedly "taking too long to act" against "chronic piracy" from broadband ISP customers. Curiously the doom and gloom comments accompanied news of strong growth in digital music sales during 2011.

According to the BPI, a "fourth successive record year for singles and growing consumer confidence in digital albums" has not been able to offset a "decline in overall UK music sales". The decline could equally be caused by the fact that rising digital sales allow consumers to pick and choose what tracks they like from an album and ignore the rubbish, although piracy still takes the blame. Not to mention the current economic problems.

2011 uk music sales

Total singles sales increased 10.0% overall in 2011, with the vast majority (98%) sold as digital tracks and bundles. Consumer appetite for digital album downloads has also continued to grow (23.5% market share), although CD album sales remain dominant with 76.1% of total sales.

Geoff Taylor, BPI Chief Executive, said:

"It has been another record year for digital singles, but the most encouraging news of the year is the strong backing consumers are giving to the digital album format. British music fans understand that the album remains the richest way to connect with an artist’s work. Digital developments grab the headlines, but the CD remains hugely popular with consumers, accounting for three-quarters of album sales. Physical ownership is important to many fans and the CD will be a key element of the market for years to come.

British artists continue to produce incredible music that resonates at home and around the world. But while other countries take positive steps to protect their creative sector, our Government is taking too long to act on piracy, while weakening copyright to the benefit of US tech giants. The UK has already fallen behind Germany as a music market. Unless decisive action is taken in 2012, investment in music could fall again – a creative crunch that will destroy jobs and mean the next Adele may not get her chance to shine on the world stage."

Taylor's comments are largely directed towards the controversial Digital Economy Act (DEA), which seeks to warn and ultimately punish (e.g. disconnect) ISP customers who become "suspected" of involvement with internet copyright infringement activity (piracy).

Unfortunately the act is reliant upon unreliable IP address based evidence, which at best can only identify the connection owner whom may or may not be the guilty individual. Many homes and businesses share their access (e.g. Wi-Fi hotspots, libraries and schools etc.), which could all now risk disconnection.

The act has faced significant opposition, not least from a Judicial Review by TalkTalk and BT that pointed to several serious conflicts with European law (here). The appeal hearing is set to go ahead in February 2012. Alternative plans for website blocking, which Ofcom rejected (here) and even the EU court appears to regard as illegal (here), have faced similar problems and remain incredibly easy to circumvent but continue to be developed as part of a voluntary code (here).
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