Only 5% of music downloaded is legal, according to
a report by the International Federation of the Phonographic
Industry (IFPI).
Generating value in an environment where 95% of music downloads
generate no revenue is
the biggest
challenge for music companies, the report said.
The recording industry copyright watchdog estimates that over 40
billion music tracks were
illegally file-shared in 2008.
John Kennedy, chief executive of IFPI, said there is a
momentous debate going on about the environment on which the music
business depends.
Governments are beginning to accept that doing nothing is not an
option if there is to be a future for commercial digital content,
he said.
According to the report, governments around the world are
starting to accept that co-operation from internet service
providers (ISPs) is the key to the problem.
The Carter Report on Digital Britain, due out at the end of the
month, is expected to recommend how the government can tackle
online piracy.
The government brokered a
voluntary co-operation agreement between the recording and film
industries and the six largest ISPs in July 2008.
The Carter Report is expected to recommend ways of expanding and
enforcing that agreement through new regulations.
Google launches free music download service in China
>>
Black Eyed Peas star woos RIM developers with Blackberry-supported
music site >>