Page 27 - AC/E Digital Culture Annual Report

The fact is that piracy a ects how content is sold more than morals. That is, it is a commercial rather than an ideological problem. The internet has been a serious wake-up call for the creative industries, as we have seen in music, TV and, more slowly, books, forcing the content sector to restructure. Technology has not only evolved; it has proved capable of changing consumers’ habits. As this isa commercial problem, industry should take this approach when seeking solutions.Piracy cannot be a moral problem because thereis no social consensus on this. What is more, it is useless to legislate with laws that are di cult to enforce. Music, books and lms are downloaded and shared simply because it is possible to do so. [...] Another matter is the industry’s reluctance to change – which is understandable as this involves making readjustments to value chains and in some cases getting rid of a few middlemen. Focusing the industry debate on piracy distracts attention away from the real problems it faces: the restruc- turing that the new ways content is consumed are calling for.In other countries where new business models are being adopted, such as the United States and the United Kingdom, digital distribution is already higher than physical distribution. Su ce it to cite the recent bankruptcy of the music stores HMV in England and Virgin and France to illustrate the wisdom of the Spanish saying “when your neighbour’s house is on re, bring water to your own”.The present-future of the music industry: streamingMusic has been undergoing a veritable revolution since the appearance of the internet. This revolution is a ecting the conventional business model: how artists relate to each other and produce their songs; fans’ shifting role from passive subjects to part of the creative process; and above all how popularity is achieved. We could sum this up in three ideas:• How artists produce and collaborate with each other.• How audiences consume and participate.• How artists’ relationships with their fans have changed (contact, music recommenda- tions, etc.).The internet and technology have created an environment that is hostile to the old business models but full of opportunities for new ideas, new actors and, especially, artists – provided that they are willing to adapt to the changes in consumers’ listening habits and are aware of what they need to do to be successful.Nowadays artists have hundreds of cost-free tools available to them on the internet for creating music; consumers no longer settle for just pressing the play button but want to be involved; and the boundary between both is becoming blurred. Therefore, music must be increasingly focused on fans, on content and, above all, on customising the experience. The importance lies in fans, who decide what they want to consume and how.After plummeting for a decade, the recorded music industry is on the road to recovery and revitalisation. For the rst time in thirteen years, IFPI reported an increase of 0.3% in recorded music revenues in 2012, driven especially by the growth of the digital music sector.Digital channels are becoming an important source of income in key markets such as those of Norway, Sweden, India and the United States. In the United Kingdom digital revenue overtook physical for the rst time in 2012, followingin the footsteps of the United States, where digital accounted for 50.3% of income in 2011. The world music industry had been sliding into recession since 2001.This growth is due mainly to the constant inno- vation of business models in music marketplaces and the expansion of related digital servicesAC/E DIGITAL CULTURE ANNUAL REPORT 201727Smart culture. Analysis of digital trends