| Author (Person) | Alexovich, Ariel |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.11, No.39, 3.11.05 |
| Publication Date | 03/11/2005 |
| Content Type | News |
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By Ariel Alexovich Date: 03/11/05 Smaller digital music providers have the most to gain from the European Commission's recent recommendation (12 October) for a single EU-wide music licence, which would make obtaining copyrights easier and less expensive. By contrast, Apple, operator of the hugely popular iTunes Music Store, could be the biggest loser if the recommendation is carried out, although some industry experts say enforcement is unlikely. As of September, iTunes held 80% of the legal music download market in the UK, according to Apple, and now iTunes operates online stores in 15 EU countries. With only a few exceptions, like iTunes and MSN Music Club, the European market is made up of mainly country-specific services. US music service Yahoo! Music Unlimited has not opened a European store because the current copyright licensing system requires permission from royalty collecting societies in each country. If acted upon, the Commission's recommendation would provide digital music services of all sizes with less costly and time-consuming access to music rights to increase their sales catalogues. These competitors could therefore attract more clients and reduce Apple's market share. Apple declined to comment to European Voice, and Yahoo! referred questions to the European Digital Media Association (EDiMA), which represents the interests of some online media content providers in the EU arena. EDiMA, to which Apple also belongs, is disappointed with the Commission's decision to issue a recommendation instead of binding legislation. "It's up to member states to act on the recommendation and to adjust or adapt their national legislation to fall in line, but they have absolutely no obligation to do so," said EDiMA spokesman Luc Delany. "As far as we are aware, the collecting societies and member states are fairly well aligned, so we don't expect many of the recommendations to happen." But Internal Market and Services Commissioner Charlie McCreevy said in a statement: "I will be monitoring the situation closely and if I am not satisfied that sufficient progress is being made, I will take tougher action." Even with the enactment of the recommendation, the challenge for smaller digital music providers will be to curb the growing number of iPod sales, since music files can only be installed onto the device using the iTunes system. Apple shipped almost 6.5 million iPods in its fourth quarter ended 24 September 2005, a 220% growth from the same period in 2004. Delany points out that EDiMA supports the idea of pan-European licensing because it could benefit all its members. Data from the Business Software Alliance suggests the online music market in Western Europe could grow more than 500% by 2008, to EUR 560 million from a predicted EUR 106m this year. This could leave room for iTunes to grow and other music services to grab a share of the industry. "Occasionally there can be some conflict in our interests, but EDiMA exists because there is a very large common ground," said Delany. "If you're the smallest website or the biggest, you still have to go through very difficult negotiations and you're still paying a great price for the licences compared to other licence users. Their competition issues are pushed aside in this case." Adam Howorth, spokes-man for Napster, the former pirate music provider which has now entered the market for legal downloads but is currently only available in the UK and US, said that his company was committed to reaching as wide an audience as possible. "If a pan-European licence accelerates this process, then it is good news for music fans," he said. Article discusses the European Commission's Recommendation of 12 October 2005 for a single EU-wide music licence, which would make obtaining copyrights easier and less expensive. Author suggests that smaller digital music providers have the most to gain from the proposal while larger players such as Apple, operator of the hugely popular iTunes Music Store, could be the biggest loser if the recommendation was to be carried out. This article is part of a European Voice Special Report, 'New Media'. |
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| Source Link | Link to Main Source http://www.european-voice.com/ |
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| Subject Categories | Business and Industry, Internal Markets |
| Countries / Regions | Europe |
