Is an Apple iTunes / Big 4 deal close?
p2pnet news | Music:- Could a deal between Apple’s iTunes and the members of the Big 4 organised music cartel be in the offing?
Steve Jobs and Warner Music, EMI, Vivendi Universal and Sony BMG have been singularly unable to strike a deal to get corporate product onto Apple’s iPod online front end (iTunes) on terms satisfactory to both.
However, an authentic-looking ‘report‘ by the Big 4’s IFPI (International Federation of Phonographic Industry) pits iTunes against LimeWire, described as a “copyright infringing service”.
“Contrary to popular perception, legal music services like iTunes offer a wider selection of songs than P2P networks like Limewire,” it says in a highlighted section, going on:
IFPI conducted research with a sample of 70 acts, mentioned by focus group participants (aged between 15 and 25) in
the UK throughout 2007. These ranged from underground bands to mainstream artists, including names such as Cherry Ghost and Jack Peñate.
The research examined the availability of songs from these artists on the legal site iTunes and on the copyright infringing service Limewire.
In 95 per cent of searches the artists requested had more songs available on iTunes than on the leading P2P service.
The searches revealed a large number of duplicates and misleading file names on the P2P networks, as well as many files that were not available to download.
You couldn’t buy that kind of PR.
Or could you?
“Research by IFPI debunks a myth about illegal P2P services,” says the corporate misinformation service, “in fact, fans get better choice on legal sites”.
At this point in time, compared to the real world of online music where the P2P networks and independent sites run by artists and entrepreneurs rule, the corporate music business is virtually non-existent.
Sales of Big 4 ‘product’ through the likes of Amazon are slowly coming about, but they’re insignificant stacked against what’s happening within the world’s hundreds and thousands of P2P communities.
Digital music sales rose 40% to $2.9 billion
Meanwhile, one could be mistaken for believing the corporate music industry is made up of hundreds, if not thousands, of independent labels.
The reality, however, is four enormous conglomerates —- Vivendi Universal (France), Sony BMG (Japan and Germany), EMI (Britain), and Warner Music (US) —- are Big Music.
They rule, control, dominate. And like their fellow travellers in the music industry, they’ve amassed eye-popping profits, at the same time pleading poverty, blaming their own customers for their woes.
Now, revenues from digital music sales rose 40% to $2.9 billion over the past year, confesses the IFPI, which soon may become one with the RIAA (Recording Industry Association of America) .
The IFPI is infamous for its dubious reports and it kicks off its 2008 with a statement / headline which, typically, is about as far removed from reality as you can get.
“2007 was the year ISP responsibility started to become an accepted principle,” it says.
However, nothing could be further from the truth. It’s a Big 4 wish, and nothing else.
“2008 must be the year it becomes reality,” it says, going on in the body copy:
“Governments are starting to accept that Internet Service Providers (ISPs) should take a far bigger role in protecting music on the internet, but urgent action is needed to translate this into reality …”
‘Massively devalued by piracy’
A 40% increase to $2.9 billion can hardly be described as paltry, but it isn’t enough for the Big 4 who, through their IFPI, say, “the spread of unlicensed music on ISP networks is choking revenues to record companies and investment in artists”.
Therefore, “ISP cooperation, via systematic disconnection of infringers and the use of filtering technologies, is the most effective way copyright theft can be controlled.
Copyright-infringing files comprise 80% of ISP traffic, states the IFPI, failing to give details of how it arrived at this figure.
It also lauds French president Nicolas Sarkozy’s plan to stick it to Big 4 customers in France.
“After years of prevarication in the discussion, the French government’s decision to seize the day is deeply refreshing,” says IFP boss John Kennedy.
“It shows an urgency of approach that is badly needed in every market where music is today being massively devalued by piracy.”
The PR puff piece also “outlines the hidden dangers to consumers and businesses of illegal downloading, and gives a comprehensive summary of the public education work being done internationally by the record industry to improve awareness of legal online sites and of copyright”.
Adds the IFPI:
- Single track downloads, the most popular digital music format, grew by 53% to 1.7 billion (including those on digital albums)
- Digital sales now account for an estimated 15% of the global music market, up from 11% in 2006 and zero in 2003. In the world’s biggest digital music market, the US, online and mobile sales now account for 30% of all revenues
- There are more than 500 legitimate digital music services worldwide, offering over 6 million tracks – over four times the stock of a music megastore
- Tens of billions of illegal files were swapped in 2007. The ratio of unlicensed tracks downloaded to legal tracks sold is about 20 to 1
- Progress in the digital music market is being hampered by lack of interoperability between services and devices, and lack of investment in marketing of new services.
Jon Newton – p2pnet
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January 24th, 2008 at 10:55 pm
“Contrary to popular perception, legal music services like iTunes offer a wider selection of songs than P2P networks like Limewire.”
But not BitTorrent, eMule or DC, I’m afraid.