95% Of All Music Downloads Illegal, Report Finds

by Jason Gorringe Tax, News.com, London

23 January 2009

Around 95% of all music downloads during 2008 were illegal, despite progress being made by the music industry to try and combat the problem, according to a new report.

Digital music downloads rose by 25% last year, with some of the rise attributed to the increasing popularity of the pay-per-download system, iTunes. However, this still wasn't enough to deter the majority of downloaders from using illegal methods of obtaining music.

According to the Digital Music Report 2009, which was released this month by global music trade body, the International Federation of the Phonographic Industry (IFPI), an estimated 40 billion files were illegally shared in 2008 on a global basis.

In the UK alone, around 110 million single tracks were downloaded in 2008 – a rise of 42% on the year before.

The IFPI's report is based on the collation of data from individual studies carried out in 16 countries. According to this data, current statistics show that around only one music download in every 20 comes from a legal site.

The findings revealed in the report showcase a host of worries for the music industry, which has tried in vain to transform itself in light of the problem. According to the IFPI, though, little can be done to "generate value in an environment where 95% of music downloads are illegal and unpaid for", which it says, "is still the biggest challenge for music companies and their commercial partners."

The report does offer some hope of solving the piracy problem plaguing the music industry, however, and observes that:

"Cooperation from Internet Service Providers holds the key to this problem – something that is increasingly accepted by governments internationally. In 2008 a tipping point was reached, with governments in France and the UK leading the way in looking to ISPs to help bring piracy on their networks under control."

In France a draft Creation and Internet Law sets up a system of "graduated response" by which ISPs will write to persistent copyright abusers to educate and warn them about their actions, as a last resort sanctioning them with loss of internet access for between one and 12 months.

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