Recording Industry In Numbers 2009

RecordingIndustry In Numbers 2009The Definitive Source Of Global Music Market Information

www.ifpi.org

STANDING UP FOR MUSIC RIGHTS.

FOR 75 YEARS, PPL HAS BEEN GROWING INTO A MODERN SERVICE ORGANISATION FOR THE MUSIC INDUSTRY, READY AND WILLING TO TACKLE THE CHALLENGES OF THE DIGITAL WORLD.

It all started in a café in Bristol, England in 1934, when dance musicians were replaced by vinyl records played on a phonograph. Back then, PPL had just two members – EMI and Decca. Now we have over 3,400 record companies and, following a merger with the principal performer societies, 39,500 performers. In addition, our reach has extended to include international repertoire and overseas royalties through 42 bilateral agreements with similar organisations around the world.

PPL licenses businesses playing music, from broadcasters to nightclubs, from streaming services to sports studios, from internet radio to community radio. Licensees are able to obtain a single licence for the entire PPL repertoire, a service which is seen as increasingly valuable for both rightholders and users alike as consumption of music continues to grow. Broadcasters such as the BBC have commented that they simply would not be able to use music at such a scale, across nine TV channels, sixty radio stations, the iPlayer and numerous online services without a licence from PPL. The PPL licence is equally valuable to other users, such as commercial radio stations, BT Vision, Virgin Media, Last.fm and even the fourteen oil rigs that want to keep their oil workers entertained on their tours of duty.

For the performers and record companies who entrust their rights to PPL, the income from these new distribution outlets is becoming increasingly valuable. Total income (including music videos which are licensed through VPL) now tops £140m and continues to increase. All the income generated, less the actual costs of licensing and distribution, is distributed direct to the record companies and performers whose recordings have been played. PPL takes no profit for itself. For most record companies and performers – featured artists, session musicians, orchestral players, backing vocalists and others – this revenue is an important income source. This significant additional income stream also helps the record industry to continue the essential investment in new recordings.

Each week PPL receives electronic details of approximately 6,500 new recordings. This information is now essential to almost every area of the music business. As well as underpinning PPL’s licensing and distribution operations, this data is also passed on to PRS for Music for mechanical licensing, to the Official Charts Company and to BPI and IFPI for anti-piracy purposes.

PPL HAS COME A LONG WAY IN 75 YEARS. NOW THE CHALLENGES ARE GLOBAL, DIGITAL AND DELIVERING AN EVER BETTER SERVICE TO THE RECORD COMPANIES AND PERFORMERS. PPL LOOKS FORWARD TO A BRIGHT FUTURE.To find out more:+44 (0) 20 7534 1000 www.ppluk.com

PPL289IFPIAd.indd 1 1/5/09 09:36:47

Contents

IFPI Recording Industry In Numbers 2009 01

3 : Introduction 4 : Sources & Notes 5 : Recorded Music Sales In 2008 11 : New Business Models 14 : Unauthorised Downloading 16 : Top Sellers 2008 23 : Broader Music Industry

85 : World Rankings 2008 86 : Recorded Music Volume Trend 87 : Recorded Music Retail Sales 2008 88 : Digital Share By Market 2004 – 2008

89 : Physical Market Repertoire Origin 2008 90 : Certification Award Levels 92 : Local Music Industry Association Contacts 94 : Taxes On Sound Recordings & Exchange Rates

North America 27 : Canada 28 : USA

Europe 30 : Austria 31 : Belgium 32 : Bulgaria 33 : Croatia 34 : Czech Republic 36 : Denmark 38 : Finland 39 : France 41 : Germany 42 : Greece 43 : Hungary 44 : Italy 45 : Netherlands 46 : Norway 47 : Poland 48 : Portugal 49 : Russia 50 : Slovakia 51 : Spain 53 : Sweden 54 : Switzerland 55 : Turkey 56 : UK

Asia 58 : China 60 : Hong Kong 61 : India 62 : Indonesia 63 : Japan 65 : Malaysia 66 : Philippines 67 : Singapore 68 : South Korea 69 : Taiwan 70 : Thailand

Australasia 71 : Australia 72 : New Zealand

Latin America 73 : Argentina 74 : Brazil 75 : Chile 76 : Colombia 77 : Ecuador 78 : Mexico 80 : Peru 81 : Uruguay 82 : Venezuela

Africa 83 : South Africa

Appendix

01

Forbes Anderson Advert7.indd 2 30/4/09 15:03:02

obtain music as part of a bundled package with their ISP subscription or mobile phone

purchase. All these different channels have one thing in common – they pay

the creators of the music their customers are enjoying.

Investing In Artists Despite rapid changes in the sector, music companies remain the largest investors in artists. They invest around 20 per cent of their revenues in discovering, nurturing and developing talent. The skills and financial backing they provide enable artists to concentrate full-time on their

music career. Record labels can also open the door for artists to

work with the best songwriters and studio producers in the business.

Record labels of all sizes succeed because they aggregate artists together. For every successful act that forges a career in music, several more fail to connect with the public and cannot recoup the advances they have been paid through sales. That is the investment risk that record labels face. The role of the record label is evolving in the 21st century, but they are needed more than ever to discover great acts and develop their talent.

Protecting The Value Of Music The trade value of the recorded music market has been shrinking remorselessly for the last nine years. Increasing digital sales have not offset falling physical sales. This development has coincided with the explosion in availability of copyright-infringing music on file-sharing networks.

Governments now emphatically agree there is a problem to solve: it is grave and mere debate and talk are simply not going solve it. The debate over the future of music in the digital age is fundamentally about recognising the value of creativity. Creating new music costs money. People who work to create an album and bring it to the public need to earn a livelihood like anyone else. Operators of music services need to see a return on their investment, not face unfair competition from online piracy. Music has a real value and that should be respected and recognised by all parties.

are moving in an encouraging direction. In the meantime, music companies are continuing to experiment and innovate with models that get music to consumers in any way they want it and which pay creators the rewards they deserve.

Anyone who earns a living from creativity will have been heartened in April to see the conviction of the operators of The Pirate Bay. The trial of those individuals has been much misrepresented in the blogosphere. In fact, the outcome was great news for creators who need to know that their rights can still be protected by law from deliberate and systematic violators like The Pirate Bay.

A Brand New Sector Today’s digital music market is dominated by services that in some cases did not even exist six years ago: iTunes, AmazonMP3.com, Nokia’s Comes With Music, Sony Ericsson’s PlayNow Plus, Spotify, YouTube, TDC PLAY, We7, Dada, Play.com and MySpace Music.

Music companies have embraced technological change and are working with a huge variety of partners to bring great music to the public. New services are offering users a huge variety of ways to legally access music. Fans can now buy a-la-carte downloads, listen to free streamed music, watch music videos or

IntroductionRecognising The Value Of Music


Economic headlines in 2008 were almost unremittingly gloomy, with countries worldwide slipping into recession and chaos hitting the financial markets. The music industry was not immune from this turbulence but, as the figures in this 16th edition of the Recording Industry in Numbers show, the picture was not bleak across the board.

The global decline in recorded music sales of eight per cent was driven largely by the United States, the largest market in the world for our industry. The US was responsible for 56 per cent of the decline in revenues generated by physical sales worldwide. Excluding the US, global recorded music sales (including digital sales and performance rights) would have fallen by a more modest 3.9 per cent.

In Asia there was a different and more positive picture. Japan, the second largest market for recorded music worldwide, saw overall sales growth of one per cent. There was also growth in China, India, Thailand and South Korea. These markets have been transformed and driven by digital sales.

Europe offers a mixed picture. In some markets, such as the UK, revenues from digital services rose sharply and mitigated, to some extent, falling CD sales. In other markets, such as Italy, digital platforms continue to underperform.

For the music business, the challenge remains creating a thriving online business that gives consumers access to the music they want in a way which also rewards and respects creators, artists and producers.

In France an enlightened approach to controlling internet piracy led to the government proposing the Creation and Internet law which would oblige ISPs to take steps to deter their subscribers from repeated unlawful file-sharing. At the time of publication, the proposed law is being debated in the French National Assembly. The music and film businesses are looking for other governments to follow this approach. Several, from the UK to Taiwan,

John Kennedy, IFPI Chairman & CEO

03

Sources › Population, median age: The World

Factbook (www.cia.gov)

› Exchange rates: Oanda (www.oanda.com)

› Broadband lines: Point Topic (www.point-topic.com)

› Internet users: Internet World Stats (www.internetworldstats.com)

› Mobile subscriptions: Mobile operator figures

› Top independent labels: IFPI national groups (unless otherwise stated)

› Portable player users: Screen Digest, Futuresource Consulting Ltd.

Notes › Trade value: or wholesale value refers

to record companies’ revenue, net of discounts, returns and taxes. Promotional goods and non-music related sales or non-recording artist related products are excluded. All analysis, growth and trends, are based on trade values unless otherwise stated.

› Retail value: estimate of the final value paid by the consumer for the purchase of music products, inclusive of relevant sales taxes and retailer mark-up. Retail values are estimates only and refer to physical and digital sales only (performance rights not included).

› $US (fixed): historical local currency values re-stated at the 2008 exchange rate.

› Physical sales: CD sales ordered via the internet (e.g. Amazon) are reported as physical sales. Figures are provided by the record companies in the respective markets to the local IFPI body. IFPI applies a ‘coverage factor’ to the figures to account for non-reporting companies, therefore representing 100% of the market.

› Digital sales: refers to sales via online and mobile channels and via subscriptions. Income from ad-supported services, mono/polyphonic ringtone income and

bundled subscriptions were included in the digital sales figures in 2008. IFPI has revised 2007 digital sales for the major markets to include these new digital categories and in order to reflect true year-on-year digital growth. Online sales include single track and album downloads, music video downloads, streams, bundles and kiosk sales. Mobile music sales include master ringtones, single track downloads to mobile, ringback tones, music video downloads to mobile, streams, mono/polyphonic ringtone income, embedded music on mobile phones (pre-loaded), mobile bundles, greetings and dedications income. Subscription revenues include online, mobile and bundled subscriptions.

› Performance rights revenues: monies received by record companies from music licensing companies for licenses granted to third parties for the use of sound recordings and music videos in broadcasting (radio and TV), public performance (nightclubs, bars, restaurants, hotels) and certain internet uses. Performance rights revenues refer to distributions to record companies – it excludes non-allocated distributions and non-recurring distributions such as settlement amounts. Distributions for the current year refer to monies collected by music licensing companies in the previous year (e.g. distributions for 2008 refer to monies collected in 2007). Figures are provided by the respective music licensing companies to IFPI.

› Repertoire origin: proportion of the physical market value (trade) accounted for by each repertoire type. IFPI does not report repertoire splits for the digital market. Classification is based on artist country of signing, unless otherwise stated. Jazz is generally not reported under classical repertoire.

› Rounding: figures are subject to rounding, which may affect overall totals and percentages.

IFPI figures may differ from local industry groups’ reports due to different methodologies.

Compiled by Francesca Jacobson and Laura Childs.

Produced and edited by Gabriela Lopes.

For further information visit www.ifpi.org

Designed by: band: www.bandlondon.co.uk

Photographer credits: Metallica (p 7) – Soren Starbird 2008 Duffy (p 18) – Julian Broad Taylor Swift (p 21) – Joseph Anthony Baker Utada (p 62) – Y. Kikuma

Published by IFPI, May 2009. Copyright © IFPI.

All data, copy and images are subject to copyright and may not be reproduced, translated or made available without permission from IFPI.

Sources& Notes

IFPI Recording Industry In Numbers 200904

04


0

5

10

15

20

25

2004 2005 2006 2007 2008

23.022.2 21.8

20.1

18.4

Global recorded music sales totalled US$ 18.4 billion in 2008 in trade values, a decline of 8.3% on 2007. While music sales on physical formats continued to fall, digital sales and performance rights revenues grew strongly. On a retail basis, the global recorded music market was worth an estimated US$ 27.8 billion.

Recorded Music Sales In 2008

Global Recorded Music Sales In 2008 (US$ Millions)

Source: IFPI

Source: IFPI

Trade Value 2007 2008 % change

Physical sales 16,350 13,829 -15.4%

Digital sales 3,050 3,784 24.1%

Performance rights 690 802 16.2%

Total 20,091 18,415 -8.3%

On a volume basis, full-length product sales (including vinyl, cassette, CD, music video and digital albums) totalled 1.6 billion units globally, a drop of 12% on 2007. Digital albums were the fastest growing format, up 76%, now accounting for 7% of full-length product sales. Music sales on vinyl also grew strongly by 60%, but its share of album sales remained low at 1%.

Albums remain a popular format despite the recent boom in single track consumption. As much as 79% of all revenues from music products sold via retail channels are in the album format – with digital albums accounting for 4% of overall album revenues.

Singles volumes (including physical singles and online single track downloads) were up 24% in 2008, totalling 1.5 billion units. Single track downloads now account for 94% of singles sales.

Recorded music sales in physical formats continued to fall in 2008. Factors explaining this trend include:

› The continued impact of illegal downloading on CD sales, particularly affecting younger consumers’ purchasing habits

› Shrinking shelf space for recorded music in physical stores leading to limited purchase locations for CD buyers

› Difficult economic conditions, with many shop closures taking place during 2008

› Increasing competition from other entertainment products

› Partial shift towards legal online purchasing, particularly among younger consumers

› Worsening economic environment, particularly impacting sales during Christmas 2008

› Increasing ubiquity of music, leading to digital consumption without purchase

› The continued impact of physical piracy in many markets

Global Recorded Music Sales (US$ Billions, Trade Value)

Source: IFPI

Recorded Music Sales By Sector

n Physical n Digital n Performance Rights

0

20

40

60

80

100

2004 2005 2006 2007 2008

98%

2%5%

3%

10%

3%

15%

4%

21%95%

87%82%

75%

05

0

20

40

60

80

100

Online Mobile Subscriptions AdSupported

TotalDigital

51%

42%

11%

48%

29%

6% 2%

62%

100%

24%


Recorded Music Sales By Region

Source: IFPI

2007 - 2008 % Change (Trade Values)

Physical DigitalPerformance

RightsTotal

US -31.2% 16.5% 133.3% -18.6%

Europe -11.3% 36.1% 11.3% -6.3%

Asia -4.9% 26.1% 14.6% 1.0%

Latin America -10.3% 46.6% 16.7% -4.7%

Source: IFPI

Digital Growth 2008

n Growth 2007 – 2008 n Share Of Digital 2008

0

10

20

30

40

50

60

SouthKorea

US Asia Global Japan France UK LatinAmerica

Europe Germany

20%21%22%

36%

60%

15%

12%14%

8%10%

Source: IFPI

Digital Share % Total Sales 2008

Digital music sales continue to grow strongly – up 24.1% in 2008 totalling US$ 3.8 billion, with single track downloads crossing the US$ 1 billion mark for the first time. Digital revenues include downloads, mobile sales, subscriptions and additional categories, such as revenues from ad-supported models, income from social networking sites, income from own company websites, bundled subscriptions and video-on-demand streaming.

The music industry commands the second highest digital sales share among a number of entertainment and media industries. Only the games industry has a higher digital share (35%). Digital music sales now account for 21% of total industry revenues, up from 15% in 2007 and 2% in 2004. The newspaper and film industries both have a digital share of 4% (PWC).

Digital platforms are also opening up new opportunities, enabling the music market to grow in countries where the industry’s presence has been traditionally limited. In parts of Asia and Latin America, digital sales are driving the music market with China, India, Japan, Thailand, Central America and Colombia all seeing digital growth offset the decline in physical sales.

Performance rights income – revenues derived from music used in broadcast and public performance – remain an important and growing revenue stream, now accounting for 4% of global music sales. Performance rights revenues to record companies totalled US$ 802.0 million, up 16.2% on 2007. While Europe accounts for the majority of revenues in this sector, it was North America that saw the biggest growth in performance rights in 2008, driven by satellite radio and webcasting in the US.

06


US Sees Strong Digital Growth But Suffers A Big Drop In CD Sales

Global Decline Excluding US : -3.9%

The global decline in the physical market in 2008 was driven by a 31% reduction in sales in the US, the biggest music market in the world. The impact of unauthorised downloading was complemented by other factors, including for example the absence of high-selling holiday releases like Josh Groban’s 2007 Noel. The US alone accounted for 56% of lost physical revenues to the recording industry in 2008. Excluding the US, global recorded music sales (including digital sales and performance rights) would have fallen by a more modest 3.9%.

The steepest decline in CD buying was among younger (13–17) digitally-connected consumers. Teenagers’ overall music spend has declined steadily over the past three years. Though P2P incidence rates in the US have stabilised, the teen and college age groups with fast internet access remain the heaviest users, and continue to increase the volume of unauthorised music they download (NPD Group). While this group accounted for the largest share of music purchases ten years ago, their share of spending has been eclipsed by older groups. Although the lack of a credit card may be a barrier for some teenagers when buying music online, there are alternatives available. Up to 60% of teens purchase songs at iTunes using gift cards (NPD Group).

Despite the large decline in CD sales, digital sales continued to grow strongly in the US, which now accounts for as much as 47% of global digital revenues. The growth in 2008 online sales was largely attributable to an expanding music-buying demographic, with new buyers coming into the market. New digital buyers are older, possibly an impact of AmazonMP3’s growth. According to NPD Group, 87% of digital music buyers in the US used iTunes to download music in 2008. Amazon’s digital store followed with 16%. Three out of four digital consumers are repeat buyers.

Young adults are driving the US digital music economy. US consumers aged 18-35 were the highest spenders in music in 2008, with their increased spend on digital formats compensating for the decline in CD buying. CD buying still contributed to the majority of music spending among this age group, indicating that a significant proportion of downloaders have not abandoned the CD format altogether. This finding that music buyers are simultaneously buying in physical and online formats is echoed elsewhere in the world. Research in the UK found that only 15% of music consumers who download music legally say they have stopped buying CDs altogether (Entertainment Media Research).

Music Discoverers: Why You Want To Know Them

Research in the US by The Taylor Group (2008) looked into the habits of music ‘discoverers’ – those who are always looking for new acts, who like finding out about new artists and like listening to different music to most people of their age. It found that this group accounts for 13% of the US population and 28% of music purchases in the US. The mean age of a music discoverer is 33 years old and they are much more likely to purchase music than non-discoverers. Discoverers are particularly strong purchasers of digital albums, accounting for 40% of digital album sales in the US.

Looking at their buying behaviour, the research found that this group is spending less on music than they used to. The key factors identified as driving this decline in spending were the growing number of sources of music that satisfy consumption removing the need to buy; an increase in the incidence of file-sharing among this group; and the economic environment.

Source: NPD Group, 2008

n CD only n CD and digital

n Digital only

10%

65%25%

Distribution Of Music Buyers In The US (2008)

Metallica

Kid Rock

07


“ It’s about working with our business partners and coming up with consumer-friendly options. We are starting with the consumer and working backwards which is proving a successful approach.” Lachie Rutherford, President, Warner Music Asia

“ We tend to release chaku-uta (mastertones) one or two months before the physical release for test-marketing and use the market’s response to judge the song’s hit potential in physical form.” Takashi Kimoto, Managing Director Of Sales, Marketing And Digital, Universal Music Japan

Japanese Market Remains Resilient Asia Delivers Positive Results

Asian Market : US$ 4.8 billion % Change : +1.0%Digital Share : 22%Asia Excl. Japan : US$ 663.3 million% Change : +1.9%Digital Share : 37%

Japan, the second biggest music market in the world, saw an overall market growth of 0.9% with the increase in digital sales and performance rights offsetting the decline in physical sales. In 2008 Japan overtook the US as the country with the most physical music sales.

Digital sales in Japan grew by 25.4% and continued to be dominated by mobile platforms, which accounted for 88% of the digital market. Single track downloads to mobile remained the leading mobile format in Japan.

Japan’s success can be partly attributed to Label Mobile, a joint venture between twelve record labels that runs all of its stakeholders’ mobile commerce activities. The synergy between physical and digital formats, as well as constant mobile product innovation, have also contributed to Japan’s positive performance.

Illegal downloading of mastertones and full tracks to mobile phones continued to threaten the Japanese market, but Japan’s piracy rate is significantly lower than the global average. Out of all downloads in Japan (online and via mobile phones, legal and illegal) in 2008 40% were unauthorised. Globally 95% of all music downloads are unauthorised. Research shows that the bias towards mobile consumption is a key factor in Japan’s lower piracy rate. This reduced impact of piracy also helps explain Japan’s market resilience.

Asia was the only region to show overall growth (+1.0%). Excluding Japan, the region grew by 1.9%. Asia (excl. Japan) has the highest share of digital sales in the world, now at 37%. Four Asian markets saw overall market growth: China (+8.0%), India (+6.3%), South Korea (+16.0%) and Thailand (+7.3%). Asia also showed the highest growth in performance rights (+46.8%), although from a small base. Japan’s performance rights revenues grew more modestly, by 3.5%.

Top Asian Music Markets (Trade Values)

Source: IFPI

US$ (millions) % Change 07-08 % Digital

Japan 4,109.0 0.9% 20%

South Korea 140.6 16.0% 60%

India 140.4 6.3% 21%

China 82.0 8.0% 62%

Thailand 68.3 7.3% 37%

Thelma Aoyama

GReeeeN

08


Europe’s Digital Growth Outpaces Global Average

European Market : US$ 7.3 billion% Change : -6.3%Digital Share : 10%

Music sales in Europe fell by 6.3% in 2008, driven by a steep decline in physical sales (-11.3%). Europe’s digital market on the other hand grew strongly, up 36.1% on 2007 now accounting for 10% of music sales in the region.

Since 2004, broadband connections across Europe have grown by almost 95% and now outstrip those in the US. This growth has opened up opportunities in the digital sector, with new online services entering the market and new business models being introduced. However, the European digital market still has enormous untapped potential with widespread online piracy in many markets acting as a major barrier to growth.

There are also marked differences in internet penetration levels across Europe, with Northern Europe showing faster adoption of PCs and the internet. Nordic countries have an internet penetration rate of 76% on average compared to 45% in Southern Europe.

The top two European markets showed modest overall market declines of less than 5% in 2008. While digital sales helped offset the UK physical decline, in Germany, CD sales saw a less steep decline. The UK and France were the fastest expanding digital markets with digital growth rates well above the global average. Eastern European markets also delivered strong digital growth, including Poland, Russia and Turkey.

The performance rights sector in Europe is a more mature market than elsewhere in the world and accounted for more than 70% of global performance rights revenues. Europe is also home to the top three music licensing companies – PPL in the UK, GVL in Germany and SCPP in France.

Top European Music Markets (Trade Values)

Source: IFPI

US$ (millions) % Change 07-08 % Digital

UK 1,845.4 -2.5% 14%

Germany 1,627.8 -4.2% 8%

France 1,049.6 -11.4% 15%

Italy 326.1 -17.0% 9%

Spain 302.4 -7.8% 10%

Amaia Montero (Spain)

In terms of its creative output and exports, Europe remains a major repertoire source to the world. Half of all albums with certified sales of one million in 2008 in Europe were of European origin. Among the top 50 global top sellers, European acts accounted for 25% of sales in 2008, up from 23% in 2007, while the share of US acts declined for the fourth consecutive year.

Looking at the breakthrough acts of 2008 (p 17), out of the 17 new acts reaching platinum status, 13 were of European origin including 4 from the UK, 2 from Spain and 2 from Ireland.

Within Europe, the UK remains the continent’s most important centre of artist and repertoire. Artists such as Duffy, Coldplay, Leona Lewis, Seal, Radiohead and Dido sold significantly around the world in 2008. In the US, British artists accounted for 1 in 10 artist albums sold and there were large increases in shares recorded in France and Germany.

0

20

40

60

80

100

2001 2002 2003 2004 2005 2006 2007 2008

59%

30%

11% 12%

28%

60%

16%

37%

47%

12%

44%

44%

7%

28%

65%

6%

37%

57%

12%

28%

60%

19%

31%

50%

Source: IFPI Platinum Europe Awards. Based on artist nationality, other includes compilations/soundtracks and other nationalities

European Million Selling Albums By Origin

n EU acts n US acts n Other

0

20

40

60

80

100

2001 2002 2003 2004 2005 2006 2007 2008

51%

26%

23% 21%

18%

61%

7%

19%

74%

12%

14%

74%

10%

24%

66%

10%

26%

64%

10%

26%

64%

23%

25%

52%

Source: IFPI. Other includes compilations/soundtracks and title sales from other nationalities

Top 50 Global Best Sellers By Origin

n US acts n EU acts n Other

09


Latin America Sees Strong Growth In Digital Sales And Performance Rights

Music sales in Latin America fell by 4.7% in 2008. Four markets saw overall music sales grow: Brazil (+8.1%), Central America (+10.3%), Colombia (+5.0%) and Venezuela (+19.2%).

Latin America saw the sharpest rise in digital sales in 2008, growing by nearly double the global rate (+46.6%). While this is a positive development, digital sales in the region remained below the global average, reaching a 12% share in 2008. Mobile continued to account for the bulk of digital revenues in the region (80%), with embedded music on mobile phones proving a successful model in markets like Brazil.

The online digital market has been held back in Latin America by a number of factors, including widespread illegal downloading, low levels of trust online and lower credit card penetration.

“ Expanding our business in Latin America today is about developing partnerships between music creators, music services and technology, and in turn, using technology to connect consumers with artists. The music industry is driving these partnerships with the mobile and online worlds to develop new products and new distribution channels for delivering music to fans. The result has been a variety of new offerings across a wide range of services that have proven popular with consumers, ranging from ring tunes and full track downloads, to advertising-supported video services and subscription models. The future offers huge potential for us to continue creating even more new ways for all kinds of fans to experience and enjoy music.” Sergio Lopes, VP, EMI Marketing / Digital Development and Distribution, EMI Music Latin America

Padre Marcelo Rossi

The opportunities are huge however. Brazilians spend more time on the internet than any other nation and social networks and services such as YouTube, MySpace and Orkut have attracted big audiences. Ad-supported models have started to grow in the region as a result.

Illegal downloading has hit a key audience in the region – young consumers, digitally savvy, from AB/C+ economic brackets. Research in Mexico highlighted that as many as 39% of the downloading population fit in the AB/C+ economic group while this segment accounts for 20% of the Mexican population. 90% of file-sharers in Mexico are aged between 12 and 26 years old (Ipsos MediaCT, 2008).

Performance rights growth in Latin America also outpaced the global average, up 16.7% on 2007. Performance rights now account for 5% of music revenues in the region.

“ We are excited about digital services opening new revenue streams in new markets. For example, the number of mobile phone users in developing markets such as India, Russia or Latin America is huge. We have the opportunity of reaching them with some of these new business models. We now have partners we can work with on a scalable international basis.” Francis Keeling, Vice President, Digital, Universal Music Group International

10


New Business Models For A New Era

Music companies and their partners have introduced a variety of new legitimate services to supplement traditional business models and adapt to new forms of consumer demand. These include music access services, fully-interoperable download stores, and advertising-supported offerings. At the same time, music companies are working to develop new revenue streams, ranging from creating value in the music experience, be it through games or merchandising products, to brand partnerships and improved broadcast and public performance rights.

This diversification in the business models reflects the different ways people wish to consume music. Some consumers are passionate collectors with specialist interests, others prefer to access a wide range of repertoire. Some will be high-value customers prepared to spend hundreds of dollars a year on music, others will want to pay as little as possible for a basic service or not pay at all. Music companies and their partners are reaching out to all different segments of music fans by offering content in multiple platforms while placing emphasis on service quality to increase consumers’ propensity to pay for content.

Music companies are broadening the way they secure revenue, introducing an approach which relies on business partners being able to deliver a fair average revenue per user (ARPU) and developing scalability. Some of these partners do not require consumers to pay at the point of listening, but bundle music into a broader range of services such as broadband subscription packages, mobile devices or cable TV subscriptions.

Examples of ’music access’ models launched in 2008 and early 2009 include Nokia’s Comes With Music available in the UK, Italy, Sweden, Singapore and Australia; Sony Ericsson’s PlayNow service first launched in Sweden as well as a service launched by local telecom TeliaSonera; Denmark’s TDC PLAY; Vodafone Spain’s unlimited music service; a music service from Finnish ISP DNA and a number of such partnerships in France with ISPs and mobile operators including Neuf Cegetel, Orange and SFR.

Meanwhile consumer choice in the traditional à-la-carte sector is improving. Many services now offer their music catalogues free of digital rights management (DRM), allowing for interoperability between devices. Early 2009 marked the introduction of variable pricing in the downloads market.

On iTunes, while many songs are still sold at 99 cents, some new releases cost US$1.29 and many older catalogue

songs now sell for 69 cents. Amazon and other retailers are also offering songs at different prices.

Devices like the iPhone are also helping drive mobile music consumption. While still a niche device, accounting for around 2% of UK mobile users, iPhone users are much more likely to consume music. 66% of iPhone owners listen to music on their mobile compared to 41% of smartphone users and 23% of all mobile users in the UK (comScore,

March 2009).

“ In 2008 we saw the emergence of new partners and business models that have diversified the number of ways consumers can acquire music. We look forward to seeing these new models start to blossom in 2009 and 2010.” Thomas Hesse, President Global Digital Business, Sony Music Entertainment

“ We are extremely active in developing new business models, new sources of revenues. We are working with all the big names in the field of internet, telecom equipment companies, big media companies and this is a big opportunity. I really believe we are at the turning point for the music industry.” Jean-Bernard Levy, CEO of Vivendi (quoted in the Financial Times)

” The market will rely on an increasingly complex range of multi-faceted models. That means more opportunities for fans to connect with artists and vice versa - but being able to manage such complexity is a challenge for artists and labels. To be relevant to today’s music consumers and today’s artists, music companies must develop and offer a new set of marketing skills (especially in digital), starting with deep consumer insight, and a truly global and demand-driven approach.” Elio Leoni Sceti, Chief Executive, EMI Music

11

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24% 24%

8%

7%16%

19%

Video GamesDVD / BD MoviesDVD Rental

Movie TicketsMusic RecordedMusic Concerts

% Share of Monthly Spend on ContentAmong U.S. Music Buyers

Source: The NPD Group/Entertainment Trendsin America, Wave 4

RIN2009-Ad:Layout 1 5/1/09 1:37 PM Page 1


Music companies are also working hard to monetise

the rapidly growing area of social networks. Here a free-to-user experience

predominates, presenting a very different business

model. Spending by advertisers has tilted towards online platforms in the last few years, with the internet now accounting for 10.3% of global advertising spend or US$ 49.9 billion. This means online advertising has exceeded radio advertising for the second consecutive year

(ZenithOptimedia). As this sector grows, the opportunities for content industries online expand.

Increasingly, music platforms on social networks link the unlimited streaming discovery environment with purchase opportunities. As fans experience music in abundance and discover new favourites, their likelihood to purchase increases. By integrating the ‘free’ streaming experience with opportunities for consumers to buy and permanently own tracks, music companies can open up additional revenue streams.

Research by NPD Group in the US found that ad-supported services have the potential to reach minimally 9-15 times the current US subscription population. Younger consumers aged 13-34 years old are the most likely to be interested in an ad-supported service. Consumers are willing to look at a reasonable number of ads. 47% of internet users aged 13-55 were extremely/very interested in a free service with the features they liked that required viewing ads. Moreover, consumers will accept a limited number of free-to-own songs (they don’t demand unlimited ownership), opening up opportunities for premium services/up-selling.

In 2008 online video established itself as the most popular online entertainment application, with more than 1 in 4 (28%) Europeans watching short or full-length videos – an increase of over 150% since 2006 (Forrester Research). Music videos remained one of the top video categories online, evidenced by the top most-watched videos on YouTube. Over half of the top 30 most-watched videos on YouTube are licensed music videos from artists such as Avril Lavigne, Chris Brown and Rihanna.

In April 2009 Universal Music Group and Google partnered to create a new music video service called Vevo, a central repository for all of Universal’s visual content such as music videos, interviews and concert footage. YouTube will provide the technology behind the service, and will be the first online streaming video service to syndicate the content. Negotiations to bring the catalogue of other labels into the service are ongoing. The service is due to launch towards the end of 2009.

“ In the 90s, 70% of video product could not find a home and was never played. Today there is a home on the internet for every piece of content, but without getting selected, filtered and eventually pushed by a trusted entity, it remains unplayed. Distributing content is not pushing content. It may not be fashionable to admit it but the push model is as relevant as ever.” Peter Ruppert, Founder & President, Entertainment Media Research Ltd

“ The growth of non-retail services has been the biggest development in 2008 for us, but it also poses challenges. People are choosing to consume music in many different ways and it is our responsibility to monetise those rights.” Simon Wheeler, Director Of Strategy, Beggars Music Group

“ The artist has created an asset and consumers are indicating they appreciate that asset and assign a value to it. So we need to establish an appropriate system in which rights holders get paid for the use of this asset.” Richard Story, COO, Sony Music Continental Europe

Music Companies Investing In Music

Research carried out by the BPI in the UK in 2008 found that 24% of record companies’ revenues were spent on marketing and promotion in 2007. It is this marketing investment that raises artists’ profiles and creates demand. The same research found that record companies invested an average of 21% of their revenues in A&R over the years 2005-2007 – all of which record companies fund upfront in the hope that the recordings will be a commercial success and they will recover this investment. A&R includes artist advances, recording and origination costs (e.g. studio, engineering and production costs), video costs, tour support, A&R staff overheads and TV advertising expenditure.

The investment record companies put into the marketing and promotion of an album prior to its release is vital to the artist’s chances of success. Research by IFPI found that on average, 56% of the total sales of an album’s life-cycle will be achieved within the first four weeks of release.

Consumers are bombarded with information and various industries are competing for consumers’ limited spend. Moreover, competition is also fierce in the music scene, with millions of artists hoping to expand their fan-bases. An example of this is the number of acts with profile pages on the social networking site MySpace. There are more than 2.5 million hip hop acts alone on MySpace and 1.8 million rock acts. Record companies need to ensure that their marketing spend goes towards focusing the public’s attention on the artist’s work, ensuring the artist’s work reaches as many potential fans as possible. All of that while trying to create a ‘connection’ between fan and artists – a fundamental part of long-term artist development and consumer loyalty.

13


Unauthorised Downloading Blights The New Legitimate Online Business

The legitimate digital music sector has grown strongly but remains far short of its potential. Unlawful downloading and swapping of music online is not the only cause of the unfulfilled potential of the digital music revolution – but it is a major one. Illegal music services pose unfair competition to legitimate start-ups. In some cases they make millions of dollars from selling online advertising and bundled software on the back on unauthorised content distribution.

Peer-to-peer (P2P) file-sharing is the application producing most internet traffic – ahead of web browsing, media streaming, e-mail or instant messaging. Its share varies, but it is estimated to range between 43-70% of all internet traffic depending on the market (ipoque, Internet Study 2008/2009). P2P technology has been of great interest to music companies as a legitimate business tool. It has also, however, been a vehicle for mass-scale violation of creators’ copyrights.

In the US 18% of internet users aged 13+ used P2P services in 2008. That figure has remained stable for the past three years despite an increase in the volume of files illegally downloaded (NPD Group). In Europe, 16% of internet users regularly swap music on P2P (Forrester Research), again a figure that has remained relatively stable over the past few years. In the UK, 15% of online users frequently file-share (Harris Interactive/BPI). In Japan 10% of internet users were found to file-share in 2008, a slight increase compared to 2007 (Media Interactive/RIAJ).

Unlawful file-sharing has proved most popular among younger consumers – the early adopters of digital technology. While 16% of the general internet population in Europe file-share on a regular basis, among the 15-24 year olds this figure jumps to 34%. This is three times the proportion of 15-24s consuming music via legitimate à-la-carte services. In the UK 37% of file-sharers are aged 16-24 and more than 70% are aged under 35 (Harris Interactive/BPI).

P2P networks have not only had an immensely damaging effect on adoption of legitimate online services – be it à-la-carte, subscriptions or ad-supported, etc. – but they have also greatly impacted the CD market for music. CD sales dropped by 34% globally in trade revenues to record companies between 1999 and 2008. This coincides with the key period of growth in usage of P2P.

The link between the fall in recorded music sales and growth in file-sharing is verified by numerous studies by academics and by the industry. The majority of studies available around the world find that file-sharing has had a significant impact on recorded music sales. These include studies by Michael (2006), Rob & Waldfogel (2006), Zentner (2003) and Liebowitz (2006). Numerous consumer studies commissioned by the music industry worldwide also support the claim that unauthorised file-sharing harms sales.

14

TRADE VALUES MARKET SPLIT RETAIL VALUES POSITION cOUNTRy US$ M LOcAL cURRENcy M % cHANGE PHySIcAL DIGITAL PERF. RIGHTS US$ M LOcAL cURRENcy 1 US 4,976.8 USD 4,976.8 -18.6% 63% 36% 1% 8,597.8 8,597.82 Japan 4,109.0 JPY 425,159.5 0.9% 78% 20% 2% 5,600.7 579,504.03 UK 1,845.4 GBP 1,015.0 -2.5% 79% 14% 7% 2,430.3 1,336.74 Germany 1,627.8 EUR 1,106.9 -4.2% 87% 8% 5% 2,355.4 1,601.75 France 1,049.6 EUR 713.7 -11.4% 77% 15% 8% 1,559.6 1,060.5 6 Canada 456.3 CAD 488.2 -8.1% 79% 17% 4% 600.9 642.97 Australia 389.2 AUD 467.0 -6.0% 84% 13% 3% 578.4 694.18 Italy 326.1 EUR 221.7 -17.0% 82% 9% 9% 462.8 314.79 Spain 302.4 EUR 205.6 -7.8% 78% 10% 12% 409.9 278.710 Netherlands 271.9 EUR 184.9 -9.9% 76% 6% 18% 373.5 254.011 Brazil 221.8 BRL 408.2 8.1% 81% 13% 6% 328.3 604.012 Russia 220.8 RUB 5,492.2 -2.4% 95% 3% 2% 410.2 10,201.013 Switzerland 192.5 CHF 207.9 -5.4% 90% 7% 3% 243.6 263.114 Belgium 192.1 EUR 130.6 -4.8% 76% 10% 14% 268.9 182.915 Austria 147.3 EUR 100.2 -9.9% 84% 7% 9% 272.9 185.516 Mexico 145.9 MXP 1,629.5 -22.0% 89% 11% 0% 231.5 2,586.017 Sweden 143.2 SEK 944.0 -6.9% 84% 8% 9% 215.7 1,421.418 South Korea 140.6 KRW 155,111.9 16.0% 40% 60% 0% 294.8 325,078.219 India 140.4 INR 6,151.9 6.3% 64% 21% 16% 179.3 914.520 Denmark 124.5 DKK 635.0 -9.5% 73% 16% 12% 179.3 914.5 Other 1,391.5 – – -5.0% 78% 15% 8% 2,205.8 – Total 18,415.2 – – -8.3% 75% 21% 4% 27,824.6 –

Source: IFPI

Recorded Music Sales Top 20 Markets


A well-publicised study by Oberholzer and Strumpf (2004) found no link between the fall in music sales and illegal downloading. This study was reviewed by Liebowitz who concluded that “it is probably something of an understatement to say that [their] results did not hold up well under this re-examination” (How Reliable is the Oberholzer and Strumpf Paper On File-Sharing?).

Research suggests the free availability of music is the driving force behind the popularity of such services. A study by Entertainment Media Research in the UK found that 71% of music consumers who said they file-shared more heavily in 2008 cited ‘because it’s free’ as the main reason for their activity. In Norway, research by Norstat in 2009 found that the most cited reason for downloading music from unauthorised P2P sites was also ‘because it’s free’. Only 4% of Norwegians said they downloaded illegally because there was a lack of good enough legal alternatives. Research in Japan indicated that the main reason for use of P2P is ‘to download free music’, followed by ‘to download free movies’, ‘to download free music videos’ and ‘to download music files before they are released’. Moreover, 68% of P2P users in Japan claimed they didn’t purchase the music after downloading it (RIAJ/Media Interactive).

While consumer behaviour is clearly shaped by the lure of free, consumers also clearly understand the importance of paying creators. There is evidence that consumers generally believe in the core principles of copyright, that is rewarding artists and creators for their work:

› Research commissioned by the Canadian Government (Environics’ Annual Social Values Monitor) found that 90% of consumers backed strong copyright laws to protect creators

› In the UK 91% of non-file-sharers believe that artists deserve compensation for their work and that paying for music is the ‘right and moral thing to do’ (Harris Interactive/BPI)

› Research by Ipsos in France found that 80% of the French population aged 15+ believes that artists and authors must be remunerated when their songs are downloaded on the internet

› In Norway, 84% of Norwegians feel that it is reasonable that those who have created the music should decide whether their music should be sold or given away free (Norstat AS, 2009)

“The papers that have examined the impact of file-sharing can be categorised by result and by methodology. By results the classification is quite simple. There is one study (Oberholzer and Strumpf, 2004) that claims to find a zero impact. All the other studies find some degree of negative relationship between file-sharing and sales of sound recordings.” Stan J. Liebowitz (University of Texas), ‘How To Best Ensure Remuneration For Creators In The Market For Music: Copyright And Its Alternatives’

15

Top 50 Global

Best Selling Albums


Coldplay’s fourth studio album, Viva La Vida or Death and All His Friends, was the best-selling album of 2008 reaching sales of 6.8 million units globally. This sales mark is the highest for a number one album since 2005, when Coldplay topped the global chart with X&Y.

Combined sales of the global top 50 albums fell by 7.7% in 2008, following a small increase in 2007. The top 10 album sales fell by a more modest 5.4%, with three acts crossing the five million sales mark – Coldplay’s Viva La Vida or Death and All His Friends, AC/DC’s Black Ice and Mamma Mia! The Movie Soundtrack.

Two debut albums featured in the top 10 – Duffy’s Rockferry and Leona Lewis’ Spirit – both UK acts. This compares with only one debut album in the top 10 in 2007, Mika’s Life in Cartoon Motion, also a UK act.

While the share of digital album sales remains relatively low on average, it grew in 2008 to 6.1% of all album sales, from 4.3% in 2007. In the top 10, digital albums accounted for 6.5% of all sales. However, there were big variations in digital share. Madonna’s Hard Candy saw 18% of sales in digital format. Other albums with a digital share of over 15% were: OneRepublic’s Dreaming Out Loud (17%), Jason Mraz’s We Sing, We Dance, We Steal Things (16%), Twilight OST (15%) and Jack Johnson’s Sleep Through The Static (15%).

Best Sellers By Genre

› Best Selling Rock Album: Coldplay, Viva La Vida or Death and All His Friends

› Best Selling Pop Album: Duffy, Rockferry

› Best Selling Rap/Hip-Hop Album: Lil Wayne, Tha Carter III

› Best Selling Classical Album: Il Divo, The Promise

› Best Selling Country Album: Taylor Swift, Fearless

› Best Selling Compilation: Mamma Mia! The Movie Soundtrack

Frontline & Catalogue Sales

Catalogue sales (titles over 18 months old) represented 42% of overall album sales in the US, up from 39% in 2007 and 36% in 2001. The growth in catalogue sales is also present in the digital sector, with catalogue representing 48% of all digital albums sold in 2008, compared to 46% in 2007 (Nielsen SoundScan).

In the UK, catalogue sales (titles released two years prior to the current year) accounted for 29% of sales in 2008, slightly up on 2007 (28%) (BPI based on data from The Official UK Charts Company).

Coldplay

16

Number Of Albums Receiving A Platinum Award 2007-2008

New Artists Receiving Platinum Awards 2008


Source: IFPI. *Level applies to domestic repertoire threshold. For list of all national levels see page 84.

Source: IFPI

Albums released in 2008 receiving a Platinum Award in 2008

Albums released in 2007 receiving a Platinum Award in 2007

Platinum Sales Level*

US 21 36 1,000,000

Japan 52 51 250,000

UK 27 32 300,000

Germany 21 17 200,000

France 27 28 200,000

Australia 42 48 70,000

Brazil 14 7 100,000

Canada 14 25 80,000

Sweden 26 21 40,000

New Zealand 18 23 15,000

Belgium 19 17 20,000

New Artist (first album released in 2008)

Country where Platinum Award was received

Company

Adele UK XL Recordings

Amaia Montero Spain Sony Music

Amanda Jenssen Sweden Sony Music

Cistercian Monks of Heiligenkreuz

Austria, Belgium Universal Music

DuffyAustria, Belgium, Germany, New Zealand, Sweden, UK

Universal Music

Gabriella Cilmi Australia Warner Music

Geoffrey Gurrumul Yunupingu

Australia MGM

Julien Dore France Sony Music

Lady GaGa Australia Universal Music

Los Pikadientes de Caborca

US Sony Music

Michael Hirte Austria Sony Music

N-Dubz UK Universal Music

Pitingo Spain Universal Music

The PriestsNew Zealand, Sweden, UK

Sony Music

The Script UK Sony Music

The Ting Tings UK Sony Music

Thomas Godoj Germany Sony Music

Adele

17

Top 50 Global Best Selling

Albums 2008 Physical & digital formats included

ARTIST TITLE COMPANY 1 Coldplay Viva La Vida Or Death EMI Music And All His Friends 2 AC/DC Black Ice Sony Music3 Various Artists Mamma Mia! Universal Music The Movie Soundtrack4 Duffy Rockferry Universal Music5 Metallica Death Magnetic Universal Music/ Warner Music6 Leona Lewis Spirit Sony Music7 Amy Winehouse Back To Black Universal Music8 Various Artists High School Musical 3: Walt Disney Records/ Senior Year Universal/EMI9 Lil Wayne Tha Carter III Universal Music10 Rihanna Good Girl Gone Bad Universal Music11 Madonna Hard Candy Warner Music12 Beyoncé I Am... Sasha Fierce Sony Music13 P!nk Funhouse Sony Music14 Guns N’ Roses Chinese Democracy Universal Music15 Britney Spears Circus Sony Music16 Jack Johnson Sleep Through The Static Universal Music17 Il Divo The Promise Sony Music18 Taylor Swift Fearless Big Machine/ Universal Music19 Jonas Brothers A Little Bit Longer Hollywood Records/ Universal Music20 Various Artists Camp Rock OST Walt Disney Records/ Universal/EMI21 Kings Of Leon Only By The Night Sony Music22 Nickelback Dark Horse Warner Music/EMI Music23 Miley Cyrus Breakout Walt Disney Records/ Universal Music24 Kid Rock Rock N Roll Jesus Warner Music

ARTIST TITLE COMPANY 25 Enya And Winter Came... Warner Music26 Mariah Carey E=MC2 Universal Music27 Take That The Circus Universal Music28 The Killers Day & Age Universal Music29 Usher Here I Stand Sony Music30 T.I. Paper Trail Warner Music31 Kanye West 808’s & Heartbreak Universal Music32 Michael Jackson Thriller Sony Music (25th Anniversary Edition)33 Katy Perry One Of The Boys EMI Music34 Exile Exile Ballad Best Avex Marketing Inc.35 Ne-Yo Year Of The Gentleman Universal Music36 Amy Macdonald This Is The Life Universal Music37 Abba Gold Universal Music38 Namie Amuro Best Fiction Avex Marketing Inc.39 Jonas Brothers Jonas Brothers Hollywood Records/ Universal Music40 Seal Soul Warner Music41 Sugarland Love On The Inside Universal Music42 Celine Dion My Love Essential Sony Music Collection43 Exile Exile Catchy Best Avex Marketing Inc.44 Dido Safe Trip Home Sony Music45 Taylor Swift Taylor Swift Big Machine/ Universal Music46 Chris Brown Exclusive Sony Music47 Twilight Twilight OST Warner Music48 Jason Mraz We Sing, We Dance, Warner Music We Steal Things49 One Republic Dreaming Out Loud Universal Music50 Various Artists Now That’s What EMI Music I Call Music! 71


Source: IFPI

Katy Perry

Duffy

Lil W

ayne

18


Top 10 Global Best Selling

Digital Singles 2008 Digital only

ARTIST TITLE COMPANY SALES (M UNITS) 1 Lil Wayne Lollipop Universal Music 9.12 Thelma Aoyama Sobaniirune Universal Music 8.23 Flo Rida feat. T-Pain Low Warner Music 8.04 Leona Lewis Bleeding Love Sony Music 7.75 Timbaland Apologize Universal Music 6.26 GreeeeN Kiseki Universal Music 6.27 Katy Perry I Kissed A Girl EMI Music 5.78 Alicia Keys No One Sony Music 5.69 Usher feat. Young Jeezy Love In This Club Sony Music 5.610 Chris Brown With You Sony Music 5.5

Source: IFPI. Chart includes online single tracks, audio and video mastertones, ringback tones and full track downloads to mobile. Period of 12 months to November 2008. Sales figures are rounded. Combined all versions of the same song.

Best Selling Albums

By Company 2008 Physical & digital formats included

EMI MusicArtists Title

Coldplay Viva La Vida Or Death And All His Friends

Katy Perry One Of The Boys

Various Artists High School Musical 3 – Senior Year

Various Artists Now That’s What I Call Music! 71

Utada Hikaru Heart Station


Lenny Kravitz It Is Time For A Love Revolution

Various Artists The Old Time Radio Hour Christmas Program



Sony MusicArtists Title

AC/DC Black Ice

Leona Lewis Spirit

Beyoncé I Am... Sasha Fierce

P!nk Funhouse

Britney Spears Circus

Il Divo The Promise

Kings Of Leon Only By The Night

Usher Here I Stand

Michael Jackson Thriller (25th Anniversary Edition)

Celine Dion My Love Essential Collection

Universal MusicArtists Title

Various Artists Mamma Mia! The Movie Soundtrack

Duffy Rockferry

Amy Winehouse Back To Black

Lil Wayne Tha Carter III

Rihanna Good Girl Gone Bad

Guns N’ Roses Chinese Democracy

Jack Johnson Sleep Through The Static

Taylor Swift Fearless

Jonas Brothers A Little Bit Longer

Miley Cyrus Breakout

Warner MusicArtists Title

Madonna Hard Candy

Kid Rock Rock N Roll Jesus

Enya And Winter Came...

Nickelback Dark Horse

Metallica Death Magnetic

T.I. Paper Trail

Seal Soul

Various Artists Twilight Original Motion Picture Soundtrack

Jason Mraz We Sing, We Dance, We Steal Things

Disturbed Indestructible

Source: IFPI. List includes independent releases distributed by major labels.

Il D

ivo

19


IFPI

Platinum Europe Awards

Award Winning 2008 Releases

Source: IFPI

Artist Album Level Company

Duffy Rockferry 3 Universal Music

AC/DC Black Ice 2 Sony Music

ColdplayViva La Vida Or Death and All His Friends

2 EMI Music

Metallica Death Magnetic 2 Universal Music

OSTMamma Mia! The Movie Soundtrack

2 Universal Music

Take That The Circus 2 Universal Music

Enya And Winter Came... 1 Warner Music

Guns N’ Roses Chinese Democracy 1 Universal Music

Kings Of Leon Only By The Night 1 Sony Music

Madonna Hard Candy 1 Warner Music

OSTHigh School Musical 3 – Senior Year

1Disney Music Group

Seal Soul 1 Warner Music

The Killers Day & Age 1 Universal Music

IFPI’s Platinum Europe Awards were launched in 1996 to honour artists who achieve album sales of one million units in physical and digital formats across Europe. To this day the ‘Plats’ are an established hallmark of success for artists in Europe.

2008 Milestones

› 52 albums received a Platinum Award in 2008, down from 57 in 2007

› 13 albums (25%) achieving a Platinum Award were 2008 releases

› The highest selling release of 2008 was Duffy’s Rockferry, with sales of over 3 million in Europe

› The highest award level reached in 2008 went to Norah Jones’ 2002 release Come Away With Me which reached sales of 7 million

Mad

onna

Mam

ma M

ia!

Flo Rida

Amy W

inehouse

20


ARTIST TITLE COMPANY AWARD 2008

LEVEL ENTRY Norah Jones Come Away With Me EMI Music 7Amy Winehouse Back To Black Universal Music 6Duffy Rockferry Universal Music 3 •Take That Beautiful World Universal Music 3U2 The Best Of 1990-2000 Universal Music 3AC/DC Black Ice Sony Music 2 •Amy Macdonald This Is The Life Universal Music 2Bryan Adams Unplugged Universal Music 2Coldplay Viva La Vida Or Death EMI Music 2 • And All His Friends James Blunt All The Lost Souls Warner Music 2Leona Lewis Spirit Sony Music 2Metallica Death Magnetic Universal Music 2 •Michael Bublé It’s Time Warner Music 2Michael Bublé Call Me Irresponsible Warner Music 2OST Moulin Rouge Universal Music 2OST Mamma Mia! Universal Music 2 • The Movie SoundtrackOST High School Musical Disney Music Group 2Scissor Sisters Ta-Dah! Universal Music 2Snow Patrol Final Straw Universal Music 2Take That The Circus Universal Music 2 •Westlife Unbreakable – Sony Music 2 Greatest HitsAlicia Keys As I Am Sony Music 1 •Amy Winehouse Frank Universal Music 1 •Diana Krall The Girl In The Universal Music 1 • Other RoomEnya And Winter Came... Warner Music 1 •Franz Ferdinand You Could Have It So Domino Records 1 • Much Better Girls Aloud The Sound Of Girls Aloud Universal Music 1 •Gregory Lemarchal La Voix D’Un Ange Universal Music 1 •Guns N’ Roses Chinese Democracy Universal Music 1 •Il Divo Siempre Sony Music 1 •James The Best Of James Universal Music 1 •Johnny Cash I Walk The Line: Legend Universal Music 1 • Of Johnny CashKaiser Chiefs Yours Truly, Angry Mob Universal Music 1 •Kanye West Late Registration Universal Music 1 •Kings Of Leon Only By The Night Sony Music 1 •Linkin Park Linkin Park Live In Texas Warner Music 1 •Madonna Hard Candy Warner Music 1 •Muse Absolution Warner Music 1 •Neil Diamond The Best Of Universal Music 1 • Neil DiamondOST High School Musical 2 Disney Music 1 • GroupOST High School Musical 3 – Disney Music 1 • Senior Year GroupPaul Potts One Chance Sony Music 1 •Queens Of The Songs For The Deaf Universal Music 1 • Stone Age Scorpions Best EMI Music 1 •Seal Soul Warner Music 1 •Sheryl Crow The Very Best Of Sheryl Crow Universal Music 1 •Stevie Wonder The Definitive Collection Universal Music 1 •The Cure Greatest Hits Universal Music 1 •The Killers Hot Fuss Universal Music 1 •The Killers Day & Age Universal Music 1 •Westlife The Love Album Sony Music 1 •Westlife Back Home Sony Music 1 •

Notes: Award level refers to million units sold, cumulative, across Europe since the launch of the awards in 1996 up to 2008. 2008 entry refers to first IFPI Platinum Europe Award being given in 2008.

2008 Award WinnersBest Selling Albums Since Launch Of Awards (1996-2008)

Artist Album Level Company

Celine Dion Falling Into You 9 Sony Music

Celine Dion Let’s Talk About Love 9 Sony Music

The Beatles 1 9 EMI Music

Celine Dion D’eux 8 Sony Music

Bon Jovi Crossroad 8 Universal Music

Spice Girls Spice 8 EMI Music

U2 The Best Of 1990-2000 7 Universal Music

Shania Twain Come On Over 7 Universal Music

Alanis Morissette Jagged Little Pill 7 Sony Music

Madonna Ray Of Light 7 Warner Music

Norah Jones Come Away With Me 7 EMI Music

Taylor Swift

Source: IFPI

21

The Broader Music IndustryIn 2008


Note: IFPI does not track revenues from related industries directly. 2007 estimates may have been revised. Sources used: • Radio advertising revenues: PWC Global Entertainment and Media Outlook 2008-2012 • Recorded music retail sales: IFPI estimate based on trade value measurement • Audio home systems: estimate based on Euromonitor home audio and cinema products (2007) • Live music sector: consists of live performance revenues (ticket sales based on Pollstar data), plus an estimate of merchandising and ancillary revenues. Sponsorship revenues are included (IEG) • Portable digital players: In-Stat • Music instrument sales: The Music Trades Global Market Report 2008 and IFPI estimates • Music TV/mags advertising revenues: music magazine revenues are estimates based on PWC data. Music channels advertising revenues relate to Viacom’s advertising and affiliate revenues • Music related video games: estimate based on Top Global Markets reported growth for top video game markets and NPD Group estimates • Music publishing: IFPI estimate • Performance rights market: IFPI data

0

5

10

15

20

25

30

35

Rad

ioad

vert

isin

gre

venu

es

Rec

orde

dm

usic

ret

ail

sale

s

Aud

io h

ome

sys

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s

Port

able

digi

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Live

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Mus

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inst

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Mus

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ags

adve

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Mus

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32.9 32.530.7

27.8

24.9 25.0

22.324.2

19.2 21.6 18.216.4

8.6 9.0

4.4 4.4 4.6 1.5 1.74.8

Source: IFPI estimates.

Source: IFPI estimates.

n 2007 n 2008

n Radio advertising revenues n Recorded music sales

n Audio home systems

n Live music sector

n Portable digital players

n Musical instrument sales

n Music TV/mags advertising revenues

n Music related video games sales

n Publishing

n Performance rights market

5%3% 3%

1%

19%

17%

15%14%

13%

10%

Broader Music Industry Value By Sector

Guitar Hero

Music companies are at the heart of a broader music industry that is worth over US$160 billion worldwide. Investment in developing artists’ careers and new product release is at the heart of the music industry’s ecosystem, driving businesses as diverse as the live sector and portable player manufacturers.

Although the retail value of recorded music sales fell by 9.4% in 2008, IFPI estimates that the overall music sector saw modest growth of 0.6%. Other areas that experienced a fall in value included radio advertising and musical instrument sales. Music instrument sales saw persistent growth in the past five years, but in 2008 were hit by the economic downturn.

Revenue from performance rights saw the biggest percentage increase in 2008, although it only accounts for 1% of the overall industry. Other sectors experiencing double-digit growth were the portable digital player market and sales from music-related video games such as Guitar Hero, Rock Band and Singstar.

IFPI estimates that over two million people are employed in the broader music sector globally. Within the ‘core music’ sector alone (including recorded music, live and publishing/collecting societies), employment is estimated at around 1.5 million people.

Broader Music Industry Value (US$ Billions)

23

Country Data Index

North America 27 : Canada 28 : USA

Europe 30 : Austria 31 : Belgium 32 : Bulgaria 33 : Croatia 34 : Czech Republic 36 : Denmark 38 : Finland 39 : France 41 : Germany 42 : Greece 43 : Hungary 44 : Italy 45 : Netherlands 46 : Norway 47 : Poland 48 : Portugal 49 : Russia 50 : Slovakia 51 : Spain 53 : Sweden 54 : Switzerland 55 : Turkey 56 : UK

Asia 58 : China 60 : Hong Kong 61 : India 62 : Indonesia 63 : Japan 65 : Malaysia 66 : Philippines 67 : Singapore 68 : South Korea 69 : Taiwan 70 : Thailand

Australasia 71 : Australia 72 : New Zealand

Latin America 73 : Argentina 74 : Brazil 75 : Chile 76 : Colombia 77 : Ecuador 78 : Mexico 80 : Peru 81 : Uruguay 82 : Venezuela

Africa 83 : South Africa


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Top Independent Labels (Alphabetical)

Aquarius Records Ltd.

Arts & Crafts Productions Inc.

Compagnie Larivée, Cabot Champagne (La)

Disques Audiogramme Inc. (Les)

Déjà Musique Inc.

Groupe Analekta Inc.

Groupe Archambault Inc.

Linus Entertainment Inc.

Maplecore Ltd.

Nettwerk Productions

Prodat Inc. (Disques Victoire)

Somerset Entertainment

Source: Canadian Independent Record Production Association (CIRPA)

North America

Canada

IFPI Recording Industry In Numbers 2009 – Canada26

Country Data

Population (millions) : 33.2

Median Age (years) : 40

Currency : Canadian Dollar (CAD)

US$ Exchange Rate : 1.07

Chart Compiler : Nielsen SoundScan Canada

Chart Links : www.soundscan.com

Performance rights music licensing company : Neighbouring Rights Collective of Canada

Link : www.nrdv.ca

Recorded music sales in Canada continued to fall in 2008, driven by a sharp decline in physical sales. Traditional retail outlets accounted for 58% of album sales, down 5% on 2007 (Nielsen SoundScan). Digital sales on the other hand grew at a rate above the global average. Despite this positive development, the proportion of digital sales in Canada is still below the 21% global benchmark and significantly below the 36% US level.

Coldplay’s Viva La Vida was the best selling digital album of the year, with 46,700 units sold and was the second leading album of the year with 334,000 copies sold. AC/DC’s Black Ice topped the albums chart selling 341,000 units and was not available in digital formats (Nielsen SoundScan).

Widespread file-sharing, other forms of digital swapping and physical counterfeiting continued to erode legitimate sales – both physical and

digital. Canada’s peak in recorded music revenues was 1998 – since then sales have declined by 51%. Weak copyright protection, particularly an outdated copyright regime, remains the major factor underlying the relative weakness of Canada’s music market.

More than a decade after signing the WIPO Internet Treaties, Canada still lacks a modern, robust, digital-ready copyright regime. Copyright reform legislation similar to laws in Europe, the US and elsewhere has been introduced twice by Canada’s Parliament, most recently in mid-2008, but neither bill was passed into law. For Canadian consumers, this means continued uncertainty about what kind of activities are acceptable on the internet. As a result, unauthorised file sharing has proliferated in Canada.

Another impact of outdated laws is the extremely limited choice of digital services available to Canadian consumers despite a flurry of innovative new digital

offerings introduced in Europe, the US and Asia in 2008.

Inadequate IP protection is the key reason for this lack of investment. Canada lacks the marketplace integrity online businesses need to be confident they can earn a return on their investment.

Similarly, weak laws and enforcement contribute to extensive physical counterfeiting in Canada. Since CRIA began dedicated anti-counterfeiting operations about two years ago, the association and police have seized almost 700,000 CDs and issued scores of cease-and-desist orders against retailers of illicitly copied music. Following a CRIA investigation, a single raid last year against one of Canada’s most notorious music counterfeiters resulted in the seizure of more than 200,000 music CDs and DVDs, hundreds of thousands of blank discs, and equipment capable of burning well over 10,000 CDs and DVDs a day.

Digital Indicators (Millions)Internet users 28.0Broadband lines 9.6Mobile subs 21.1Portable player users 8.2

World RankingPhysical sales 6Digital sales 7Performance rights 11Total market 6

26

RIN 09 Canada - USA.indd 2 7/5/09 15:20:04

4836Recorded Music

Sales By Sectorn Physicaln Digitaln Performance rights

79%

17%

4%

IFPI Recording Industry In Numbers 2009 – Canada 27

Recorded Music Sales (Trade Value)Year US$ (M) Local Currency (M) Change2008 456.3 488.2 -8.1%

2007 496.4 531.2 -14.1%

2006 577.7 618.1 -6.1%

2005 616.5 658.6 -2.7%

2004 632.3 676.6 -0.6%

Note: Performance rights revenues included from 2006. Digital sales included from 2004.

Note: Music video includes DVD and VHS. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (Source: Nielsen SoundScan).

Recorded Music Sales Volume (Million Units)Physical Digital

Year CD Music Video Other Physical Single Tracks Digital Albums2008 35.0 3.1 0.1 40.7 3.4

2007 40.8 3.3 0.1 25.8 2.0

2006 49.1 3.9 0.2 14.9 1.0

2005 52.5 4.3 0.3 6.7 0.5

2004 54.8 5.2 0.5 – –

Digital Sales By Format (Value)n Online single trackn Online albumn Mastertonesn Subscriptionsn Other

35%

23%

24%

11%7%

Digital Sales By SectorYear Online Mobile Subscriptions Other2008 61% 27% 8% 4%

2007 56% 41% 3% –

2006 58% 41% 1% –

2005 70% 29% 1% –

2004 97% – 3% –

Top Selling Albums 2008Artist Title Company

1 AC/DC Black Ice Columbia

2 Coldplay Viva La Vida Parlophone

3 Metallica Death Magnetic Warner

4 Nickelback Dark Horse Roadrunner

5 Jack Johnson Sleep Through The Static Universal

6 Soundtrack Mamma Mia! Decca

7 Madonna Hard Candy Warner

8 Il Divo Promise Sony Music

9 Britney Spears Circus Sony Music

10 Kid Rock Rock N Roll Jesus Atlantic

Source: Nielsen SoundScan

Recorded Music Sales By Sector (US$ Million, Trade Value)

Year Physical Digital Perf. Rights2008 359.1 77.0 20.1

2007 424.0 53.0 19.5

2006 527.3 32.2 18.1

2005 598.8 16.6 –

2004 630.2 2.1 –

27


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Concord Records

CURB

Epitaph Records

Koch Entertainment

Madacy

Razor & Tie

Starbucks

Sub Pop

Victory Records

Walt Disney Records/Buena Vista/ Hollywood Records

Wind-Up Records


North America

USA

IFPI Recording Industry In Numbers 2009 – USA28

Country Data



Currency : US Dollar (USD)


Chart Compiler : Nielsen SoundScan

Chart Links : www.soundscan.com

Performance rights music licensing company : Sound Exchange

Link : www.soundexchange.com

Though digital sales continued to grow at a rapid pace in 2008 and constituted 36% of the total market, they did not offset the sharp decline in physical sales in the US.

Digital sales continued to grow, up 16.5%, with iTunes now the biggest music retailer in the US. Single track downloads crossed the one billion mark for the first time, reaching 1.1 billion units. Digital album sales grew at a slightly higher rate than individual tracks. In the mobile sector, gains in mobile full track downloads and ringback tones were offset by a decline in mastertone sales.

The number of internet users paying for digital music continued to grow in 2008. In 2008 NPD estimates that 36 million consumers downloaded at least one song from an a-la-carte service, such as iTunes or AmazonMP3, up from 28 million in 2007. This translates to one in every five internet users. Not only is the market growing, but there is plenty of headroom to attract more users.

Equally significant, for the first time ever, the share of internet users who downloaded music legally in the past year (20%) has surpassed the share of those who have downloaded a song illegally (18%), a major milestone in the development of the legal marketplace.

Though still a small part of the overall market, vinyl was a bright spot in the physical sector as shipments more than doubled year-over-year to their highest level since 1990, bolstered by demand for both new release and catalogue material.

The performance rights sector also fared well in the US, with revenues more than doubling year-over-year. Performance rights revenues represent an increasingly

important piece of the US music industry landscape as fans acquire less music through traditional means, but access it online through an expanding number of platforms such as social networking sites, online video sites and other streaming services. The industry expects to see significant growth in performance income in the coming years. This is one of the reasons why music labels, songwriters and artists have demanded fair market rates during industry and company negotiations with these services.

Lil Wayne’s Tha Carter was the biggest selling album of 2008 (2.9 million units), 22% fewer than Josh Groban’s Noel in 2007. Deep catalogue sales saw the smallest decrease, falling by 7% in sales volume year-over-year. This compares to a 19% drop in sales of current albums (Nielsen SoundScan).

Looking at artist sales across all their releases, the top selling artist of 2008 was Taylor Swift, who sold four million albums. AC/DC and Lil Wayne followed with 3.4 million units sold each. Rihanna was the best selling digital artist with nearly ten million single tracks sold. Coldplay claimed the top selling digital album (600,000 units), with Viva La Vida becoming the best selling digital album ever. Digital downloads accounted for 15% of all album sales in 2008, up from 10% in 2007 (Nielsen SoundScan).

The US market saw the launch of new digital services in 2008, expanding consumer choice. MySpace Music launched in September 2008 offering users free unlimited audio and video streaming. The service features a ‘buy button’ that directs users to AmazonMP3 for music downloads. This move represents a significant expansion of MySpace from a

simple social networking site to ‘a place for music’ using its core community feature as its foundation. Other important partnerships in the social networking sector include YouTube and iMeem.

Music companies in the US are also experimenting with new models that give fans more flexibility in how and where they can access their favourite music. Major labels began selling digital downloads without DRM, so fans will not have to worry about device interoperability. Services such as Lala allow fans to enjoy unlimited streaming of tracks for a very low price, and act as a digital locker so users can listen to their music from any computer with internet access. Starting in 2009, digital songs began selling at varied price points, allowing artists and record labels more flexibility to position their offerings as they see fit.

US Broadcast Right

US corporate radio generated US$17.8 billion in advertising revenues in 2008 (PWC). Despite massive revenues, analogue stations pay nothing to producers and performers for the music they use to attract listeners. The US is the only developed free-market country not to have a broadcast right, apart from Singapore. In 2008 artists and other members of the music community came together to form musicFIRST (Fairness in Radio Starting Today) to campaign for the US Congress to change the law and grant a broadcast right. Legislators have introduced a performance rights bill in response and it is hoped that 2009 will see the US join the rest of the world in ensuring radio stations pay a fair price for the music that is essential to their business.



28


4836

Source: NPD MusicWatch. Combined physical and digital retailers (% unit sales, Q4 2008) among the total US population aged 13+.

IFPI Recording Industry In Numbers 2009 – USA 29

Recorded Music Sales By Sectorn Physicaln Digitaln Performance rights

63%

36%

1%

Recorded Music Sales (Trade Value)Year US$ (M) Local Currency (M) Change2008 4,976.8 4,976.8 -18.6%

2007 6,113.5 6,113.5 -8.1%

2006 6,651.5 6,651.5 -5.1%

2005 7,011.9 7,011.9 -2.8%

2004 7,214.2 7,214.2 4.7%


Note: Music video includes DVD and VHS. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only. (Source: Nielsen SoundScan).


Year CD Music Video Other Physical Single Tracks Digital Albums2008 384.7 12.8 4.3 1,070.0 65.8

2007 511.1 27.5 5.4 844.2 50.0

2006 619.8 23.2 5.3 582.0 32.6

2005 705.4 33.8 9.5 352.7 16.3

2004 767.0 32.8 14.3 142.6 5.5


39%

21%

17%

16%

7%

Album Sales By Retail Channel (% Units)2007 2008

Mass merchants 40% 37%

Chains 36% 33%

Non-traditional outlets 18% 23%

Independent stores 6% 7%


2007 60% 31% 7% 2%

2006 56% 35% 9% –

2005 56% 32% 12% –

2004 62% 27% 11% –


1 Lil Wayne Tha Carter III Universal


3 Taylor Swift Fearless Big Machine

4 Kid Rock Rock N Roll Jesus Atlantic


6 Taylor Swift Taylor Swift Big Machine

7 Metallica Death Magnetic Warner

8 T.I. Paper Trail Atlantic

9 Jack Johnson Sleep Through The Static Universal

10 Beyonce I Am... Sasha Fierce Columbia


Top Retailers1 iTunes

2 Walmart

3 Best Buy

4 Amazon

5 Target


Year Physical Digital Perf. Rights2008 3,138.7 1,783.3 54.8

2007 4,559.1 1,530.9 23.5

2006 5,542.0 1,094.2 15.3

2005 6,376.0 636.0 –

2004 7,002.7 211.5 –

29


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Echo-Zyx Music

Edel Musica

Hoanzl

Lotus Records

MCP

Preiser

Rebeat

SPV


84%

7%9%

Europe

Austria

IFPI Recording Industry In Numbers 2009 – Austria30


2007 163.5 111.2 -1.2%

2006 165.5 112.6 -1.4%

2005 163.2 111.0 -4.5%

2004 170.9 116.2 -6.8%


Digital Sales By SectorYear Online Mobile Subscriptions Other2008 52% 46% – 2%

2007 42% 58% – –

2006 31% 69% – –

2005 31% 67% 2% –

2004 17% 83% – –

Country Data



Currency : Euro (EUR)


Chart Compiler : Media Control Austria

Chart Links : www.austriatop40.at

Performance rights music licensing company : LSG

Link : www.lsg.at

Note: Music video includes DVD and VHS. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (source: Nielsen SoundScan International). Digital albums source: Media Control GfK International GMBH



2007 10.0 0.6 1.2 2.0 0.2

2006 10.1 0.7 1.1 1.2 0.1

2005 10.5 0.6 1.3 0.6 –

2004 9.7 0.6 1.8 – –


35%

23%24%

11%

7%

Recorded music sales in Austria fell by 9.9% in 2008. Digital sales grew by 6.2% – one of the lowest growth rates in Europe. Digital sales still account for 7% of total revenues compared to a European average of 10%. Online sales continued to drive the digital market, with digital album sales growing strongly. Streaming services, such as YouTube, are becoming increasingly popular. In the mobile sector, mastertones still lead the field although the market continues to shift towards single track downloads to mobile. Online sales of physical product account for 11% of sales in Austria, with the share of specialist retail decreasing from 6% to 5%. 65% of the Austrian market is accounted for by larger retail outlets such as Cosmos, Libro and Media-Saturn.

The mail order business, including club sales, accounted for around 3% of the total market (GfK). The broader Austrian music industry generates around €2 billion, accounting for 1.25% of GDP. In terms of value creation and employment, the music industry is therefore more important than the textile industry, paper industry, chemical industry or plastics industry (IFPI Austria). Austria has some of the best facilities for performing arts venues in Europe, with 54% of all Austrian performance venues located in Vienna.

Note: Other includes ad-supported revenues and other digital amounts.


1 El Canto Del Loco Chant - Music For Paradise Universal

2 Amy Winehouse Back To Black Universal

3 Soundtrack Mamma Mia (Der Film) Universal

4 Kiddy Contest Kids Kiddy Contest Vol.14 SME

5 AC/DC Black Ice SME

6 Metallica Death Magnetic Universal

7 Amaral Was Muss Muss – Best Of Capitol

8 Soundtrack High School Musical 3 Capitol

9 Coldplay Viva La Vida Capitol

10 Ich + Ich Vom Selben Stern Universal



Top Retailers1 Media-Saturn

2 Libro

3 Amazon

4 Cosmos



2007 140.8 9.6 13.1

2006 144.9 8.4 12.2

2005 158.2 5.0 –

2004 169.4 1.6 –

30

RIN 09 Austria - Belgium.indd 2 7/5/09 15:02:26

4836


ARS

CNR

NEWS

PIAS

V2

Belgian music sales dropped by 4.8% in 2008 following a modest decline in 2007. Performance rights continued to outpace digital sales, accounting for 14% of all music revenues compared to a digital share of 10%. In 2008 experimentation with new business models paid off with bundled subscription revenues seeing significant growth. Subscriptions now account for nearly a third of all digital revenues.

Ad-supported models are also emerging, led by services such as Daily Motion and YouTube. Local artists continue to sell well with over 20% of the top selling albums coming from Belgian artists, such as Helmut Lotti, Clouseau, dEUS and Milk Inc. While music sales declined, entertainment spending grew by 6% in Belgium in 2008, led by video games and video (BEA).


76%

10%

14%

Europe

Belgium

IFPI Recording Industry In Numbers 2009 – Belgium 31


2007 201.8 137.2 -0.4%

2006 202.6 137.7 6.4%

2005 190.3 129.4 -7.2%

2004 205.0 139.4 -1.9%



2007 54% 33% 12% 1%

2006 54% 46% – –

2005 70% 23% 7% –

2004 34% 66% – –

Country Data





Chart Compiler : Ultratop/Gfk

Chart Links : www.ultratop.be

Performance rights music licensing company : SIMIM

Link : www.simim.be

Note: Music video includes DVD and VHS. Other physical includes singles and other. Single tracks refer to online single track sales only (source: Nielsen SoundScan International). Digital albums source: BEA/Media Control GfK International GMBH



2007 13.2 1.2 1.0 5.2 –

2006 17.5 1.1 2.0 3.2 –

2005 14.0 1.0 2.8 1.0 –

2004 15.6 1.6 3.6 – –

Digital Sales By Format (Value)n Online single trackn Subscriptionsn Online albumn Mastertonesn Other

36%

32%

16%

11%5%



1 Coldplay Viva La Vida EMI

2 Enfoirés Les Sécrets Des Enfoirés Sony Music


4 Francis Cabrel Des Roses Et Des Orties Sony Music

5 Clouseau Clouseau 20 EMI

6 AC/DC Black Ice Sony Music

7 Christophe Mae Mon Paradis Warner

8 Renan Luce Repenti Universal

9 Duffy Rockferry Universal

10 Amy MacDonald This Is The Life Universal

Source: Ultratop/GfK





2007 169.5 13.4 18.9

2006 179.2 11.4 12.0

2005 186.7 3.6 –

2004 203.9 1.1 –

31

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0257


Ara Music

Payner Company

Stefkos Music

Sunny Music Ltd.

Europe

Bulgaria

IFPI Recording Industry In Numbers 2009 – Bulgaria32


2007 7.8 9.9 –

2006 – – –

2005 – – –

2004 3.8 4.9 -22.7%

Note: No digital or performance rights revenues reported. 2006 values not available.

Country Data



Currency : Lev (BGL)


Note: Music video includes DVD and VHS. Other physical includes singles, vinyl, cassette and other.


Year CD Music Video Other Physical Single Tracks Digital Albums2008 1.0 – 0.1 – –

2007 0.8 0.1 0.2 – –

2006 0.7 – 0.5 – –

2005 – – – – –

2004 0.4 – 0.5 – –

Physical sales in Bulgaria fell by 18.7% in 2008. Although there is a mobile-based digital music market in Bulgaria, these figures are not yet reported to IFPI. The near 100% internet piracy rate is a key reason behind the recent market decline. Bulgaria takes the first place in Europe for speedy broadband connections – 46.5% of the fixed broadband lines have more than 10Mbps speed according to the European Commission. However, Bulgaria’s legal framework dealing with the internet and ISP activity is inadequate. Inept criminal investigations and the lack of both administrative capacity and effective court performance fail to prevent law infringers.

In such an environment, there has been little investment in developing the legal online market in Bulgaria. Legal sites such as www.mp3.bg, www.m.dir.bg and www.novialbumi.com focus on local repertoire but so far have failed to take off.

In February 2009 a joint project of the Bulgarian Telecommunication Company BTC, the biggest ISP in Bulgaria, and Universal Music Group, created the first subscription based legal music portal www.4fun.bg. The service offers access to more than 100,000 tracks from Universal’s catalogue.

Source: Bamp

Source: Bamp

Digital Indicators (Millions)Internet users 2.4Broadband lines 0.6Mobile subs 10.3Portable player users –

World RankingPhysical sales 46Digital sales –Performance rights –Total market 47

Top Retailers1 Ciela

2 Fashion Music

32

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4836


Croatia Records

Hit Records

Scardona

Europe

Croatia

IFPI Recording Industry In Numbers 2009 – Croatia 33


2007 14.4 71.0 -8.0%

2006 15.6 77.2 27.2%

2005 12.3 60.7 -10.8%

2004 13.8 68.1 -8.1%

Note: Performance rights revenues included from 2006.

Country Data



Currency : Kuna (HRK)


Performance rights music licensing company : ZAPRAF

Link : www.zapraf.hr



Year CD Music Video Other Physical Single Tracks Digital Albums2008 3.9 0.2 0.1 – –

2007 4.9 0.1 0.1 – –

2006 2.1 – 0.1 – –

2005 1.6 – 0.1 – –

2004 2.6 – 0.2 – –

Top Retailers1 Croatia Records Shop

2 Sirius

3 Aquarius Records Shop

4 Dancing Bean Shop

5 Mercaton

6 Spar

7 INA


World RankingPhysical sales 43Digital sales –Performance rights –Total market 43


Year Physical Digital Perf. Rights2008 12.5 – –

2007 14.4 – –

2006 12.5 – 3.1

2005 12.3 – –

2004 13.8 – –

33

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0257


BESTI.A

Good Day Records

Championship Records

Indies Records

Indies Scope

Multisonic

Popron Music

Supraphon

Tommü Records

Europe

Czech Republic

IFPI Recording Industry In Numbers 2009 – Czech Republic34

Country Data



Currency : Czech Crown (CZK)


Chart Compiler : IFPI Czech Republic

Chart Links : www.ifpicr.cz

Performance rights music licensing company : Intergram

Link : www.intergram.cz

The Czech recorded music market was one of the few markets showing overall growth in 2008. Music sales were up 14.0%, with physical sales growing by 15.6%. This increase was driven by the exceptional success of kiosk sales.

The digital market in the Czech Republic grew in 2008, but by a very modest rate of 5.3% – well below the global average. Mobile accounted for 44% of digital sales, with master ringtones and ringback tones leading the sector. T-Mobile, O2

and Vodafone are the main mobile players in a market with over 100% penetration of mobile phones.

In the online sector, the most successful service is i-legalne.cz, which offers a-la-carte downloads and a monthly subscription with DRM. Other legitimate services in Czech Republic include Allmusic and t-music. iPods are not very popular in the Czech Republic and iTunes is not present in the market. T-Mobile and Vodafone reported modest sales of

iPhone 3G in its first weeks since launch in September 2008. On the other hand, Nokia phones with MP3 players are very popular.

Regarding piracy, at the beginning of 2008 IFPI Czech Republic monitored more than 90 hubs with about 65,000 users daily. By November 2008 there were approximately 60 hubs with less than 25,000 users. The most popular file-sharing servers are Rapidshare, stahuj.cz, uloz.to and speedyshare.com. Usage of bittorrent sites is rising.

Michal Horacek



Mam

ma M

ia!

34

RIN 09 Czech Rep - Denmark.indd 2 7/5/09 15:32:24

4836

IFPI Recording Industry In Numbers 2009 – Czech Republic 35

Recorded Music Sales (Trade Value)Year US$ (M) Local Currency (M) Change2008 41.8 714.4 14.0%

2007 36.6 626.6 -1.0%

2006 37.0 632.8 6.6%

2005 34.7 593.7 -21.9%

2004 44.5 760.6 1.4%

Note: Performance rights revenues and digital sales included from 2006.


2007 36% 59% – 5%

2006 1% 98% – 1%

2005 – – – –

2004 – – – –




2007 4.5 0.2 – – –

2006 2.9 0.3 0.1 – –

2005 3.2 0.2 0.2 – –

2004 3.7 0.2 0.5 – –Note: Other includes ad-supported revenues and other digital amounts.


1 Jarek Nohavica Ikarus Jarek Nohavica

2 Various Mamma Mia! OST Universal

3 Michal Horacek Ohrozeny Druh Sony Music



6 Enya And Winter Came... Warner

7 Ebenove Bratri Chlebicky Sony Music

8 Il Divo Promise Sony Music

9 Various Once OST Sony Music

10 Lucie Vondrackova Fenix Tommü Records


81%

5%14%

Digital Sales By Format (Value)n Online streamn Mastertonesn Ringback tonesn Online singlen Ad-supported n Online album n Other

26%

22%

13%

8%

7%15%

9%

Top Retailers1 Bontonland

2 Davay

3 Vltava Stores

4 Music Records



2007 29.5 2.0 5.2

2006 31.3 1.2 4.5

2005 34.7 – –

2004 44.5 – –

35


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ArtPeople

Bonnier Amigo Music

MBO

Playground Music

Voices Music & Entertainment

Recorded music sales in Denmark fell by 9.5% in 2008 driven by a steep decline in physical sales. The Danish digital market is performing well, now accounting for 16% of overall sales. In 2008 digital sales in Denmark grew at nearly double the global average pace, up 45.3%. Revenues from performance rights now account for 12% of music sales.

Within the digital market, subscriptions saw the biggest rise in 2008, led by TDC’s PLAY bundled subscription service which had a measurable impact on the market, bringing in new consumers to the legitimate online market. Subscriptions now account for 39% of digital revenues, up from 13% in 2007.

TDC’s PLAY service, launched in April 2008, is offered to TDC’s broadband and mobile customers. Customers can sign up to the service and get unlimited tethered music downloads in WMA format from a catalogue of 3 million tracks. The tracks are free, bundled into the standard cost of a broadband or mobile subscription. Songs can be kept for as long as the user continues to be a TDC customer. In April TDC also introduced an a-la-carte service, allowing its customers to purchase tracks for permanent use.

Since launch PLAY has aggregated 92,000 active monthly users. PLAY generates around 7.2 million tethered downloads a month. Total downloads crossed the 54 million mark at the end of 2008 and TDC

expects this to rise to 100 million before the end of the second quarter of 2009.

Music consumption on the PLAY service is very different to the iTunes experience. The majority of downloads are albums instead of singles. The unlimited nature of the service is the main reason for this trend. Most downloads are done via the PC rather than via mobile phone.

Results of PLAY for TDC have also been positive. Preliminary figures indicate that the churn in mobile customers has dropped by 30-40% and in broadband customers by some 60%. This loyalty-effect creates a lot of value for TDC. Moreover, TDC reports that PLAY is helping them attract new customers.

Europe

Denmark

IFPI Recording Industry In Numbers 2009 – Denmark36

Country Data



Currency : Danish Kroner (DKK)


Chart Compiler : Nielsen Music Control

Chart Links : www.hitlisten.nu

Performance rights music licensing company : Gramex

Link : www.gramex.dk

Sys Bjerre

Duffy



36


4836

IFPI Recording Industry In Numbers 2009 – Denmark 37


2007 137.5 701.5 -5.6%

2006 145.6 742.7 11.6%

2005 130.5 665.4 -3.7%

2004 135.5 690.9 -3.7%



2007 70% 14% 13% 3%

2006 64% 20% 15% 1%

2005 82% 18% – –

2004 – – – –

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only. (Source: Nielsen SoundScan International). Digital albums source: Media Control GfK International GMBH.



2007 8.6 0.2 0.1 4.7 –

2006 9.8 0.3 0.1 2.2 –

2005 9.6 0.3 0.2 0.5 –




2 Martin Show The World Sony Music

3 Various M:G:P 2008: It’s Just Something We Leger! Universal

4 SYS Bjerre Makes It Even Universal

5 Nik & Jay The Greatest EMI



8 Loc Melankolia/XxxCouture EMI

9 Creedence Clearwater Revival Best Of Universal

10 Kim Larsen Forgotten Of Children EMI


72%

16%

12%

Digital Sales By Format (Value)n Subscriptionsn Online single trackn Online albumn Other

39%

27%

21%

13%



2007 111.4 13.4 12.8

2006 122.7 7.8 15.0

2005 128.6 1.8 –

2004 135.5 – –

37


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Bonnier Amigo Music Finland

Edel Records Finland

Johanna Kustannus Oy

Ondine Oy

Oy FG-Naxos Ab

Europe

Finland

IFPI Recording Industry In Numbers 2009 – Finland38


2007 96.1 65.4 -5.8%

2006 102.1 69.4 6.8%

2005 95.6 65.0 -3.4%

2004 98.9 67.3 -13.5%



2007 63% 36% 1% –

2006 61% 38% 1% –

2005 – – – –

2004 – – – –

Country Data





Chart Compiler : Finnish National Broadcasting Company

Chart Links : www.yle.fi/top40

Performance rights music licensing company : Gramex/IFPI Finland

Link : www.gramex.fi

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (source: Nielsen SoundScan International).


Year CD Music Video Other Physical Single Tracks Digital Albums2008 6.5 0.4 0.1 1.0 –

2007 6.4 0.4 0.2 0.8 –

2006 6.9 0.4 0.3 0.4 –

2005 7.4 0.4 0.3 0.1 –



84%

5%11%

Digital Sales By Format (Value)n Online single trackn Online albumn Mastertonesn Ad-supportedn Mobile single track n Other

33%

32%

19%

5%

2%

9%





2007 82.6 3.7 9.9

2006 89.4 2.2 10.4

2005 95.6 – –

2004 98.9 – –

38

RIN 09 Finland - France - Germany.indd 2 7/5/09 15:35:01

4836


Harmonia Mundi

Naïve

Pschent

V2

Wagram

Music sales in France fell by 11.4% in 2008 despite strong growth in digital and performance rights revenues. Physical sales in France fell by 19.9% and the market saw new lows in new artists signed. Local repertoire fell more sharply than international sales in 2008, now representing 57% of the French market (excluding classical). Music sales via supermarkets saw a 6% decline in 2008, now representing 34% of physical retail sales – a decline from a 49% share in 2003.

France has been the government to act most decisively to curb online piracy, proposing legislation that would encourage legal music consumption and deter illegal music sharing. At the time of going to press in May 2009, the National Assembly was debating clauses of the ‘Creation and Internet’ bill. The proposed law aims to implement a system of graduated response by the ISPs who will educate

and warn repeat infringers of copyright infringement. As a last resort, ISPs could suspend repeat infringers’ internet accounts for between one and 12 months.

Internet piracy has hit the French market hard. An estimated 18% of the French internet population currently download music on a monthly basis via p2p services (Jupiter Research). Research by Ipsos in 2008 found that 74% of the French population aged 15+ perceive ISP warnings coupled with a temporary internet ban as a better alternative to fines. An estimated 88% of illegal file-sharers say they would stop their activity after two warnings in order to avoid temporary disconnection.

France is now also experimenting with new ‘music access’ models with partnerships between labels and ISP/mobile operators such as Neuf Cegetel, SFR and Orange.

Neuf Cegetel, the French ISP, has been running a “music access” service since 2007, offering unlimited downloads from 150,000 tracks from Universal Music. Consumers are offered two options, Neuf Music Initial, which is available for no extra cost and offers unlimited downloads from one of nine music genres, or Neuf Music Optimal which costs an additional €4.99 and offers unlimited downloads of all Universal Music tracks.

Orange’s Musique Max offers unlimited downloads to its internet and mobile customers for an additional €12 per month. The service offers more than one million songs from major and independent labels, which are also available for permanent purchase and can be transferred to five other digital music players or compatible mobile phones.

Europe

France

IFPI Recording Industry In Numbers 2009 – France 39

Country Data





Chart Compiler : SNEP/IFOP

Chart Links : www.disqueenfrance.com

Performance rights music licensing company : SCCP

Link : www.sccp.fr



Coldplay

Amy Winehouse

39


0257

IFPI Recording Industry In Numbers 2009 – France40

Recorded Music Sales (Trade Value)Year US$ (M) Local Currency (M) Change2008 1,049.6 713.7 -11.4%

2007 1,184.0 805.2 -15.5%

2006 1,401.4 952.9 -4.6%

2005 1,468.6 998.6 -1.7%

2004 1,493.6 1,015.6 -13.6%



2007 23% 59% 17% 1%

2006 38% 62% – –

2005 43% 53% 4% –

2004 17% 82% 1% –

Note: Music video includes DVD and VHS. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only. (Source: Nielsen SoundScan International). Digital albums source: Media Control GfK International GMBH.



2007 62.6 4.9 8.1 10.0 –

2006 75.7 5.7 18.7 5.9 –

2005 96.2 14.8 26.6 2.7 –



1 Francis Cabrel Des Roses & Des Orties Columbia

2 Seal Soul Warner

3 Les Enfoirés Les Secrets Des Enfoirés Sony Music

4 Christophe Maé Mon Paradis Warner




8 Renan Luce Repenti Universal

9 Johnny Hallyday Best Of Warner

10 Amy Winehouse Back To Black Island Records


77%

15%

8%

Digital Sales By Format (Value)n Mobile single trackn Subscriptionsn Online single trackn Online album n Mastertonesn Ad-supported n Other

20%

19%

12%10%

24%

5%

10%

Europe

France



2007 1,004.0 102.4 77.7

2006 1,241.9 83.4 76.1

2005 1,435.5 33.0 –

2004 1,473.6 20.0 –

40


4836

IFPI Recording Industry In Numbers 2009 – Germany 41


Edel

Indigo

Soulfood Music

SPV

ZYX Music

Europe

Germany


2007 1,698.4 1,154.9 -2.9%

2006 1,749.3 1,189.5 2.0%

2005 1,714.7 1,166.0 0.4%

2004 1,708.0 1,161.5 -3.2%



2007 70% 21% 5% 4%

2006 58% 39% 3% –

2005 65% 35% – –

2004 63% 36% 1% –

Country Data





Chart Compiler : Media Control

Chart Links : www.musicline.de

Performance rights music licensing company : GVL

Link : www.gvl.de

Note: Music video includes DVD and VHS. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (Source: Media Control GfK International GMBH).



2007 113.3 9.1 15.3 34.5 2.8

2006 114.4 10.3 21.6 26.0 2.0

2005 114.7 10.3 26.5 17.5 1.4

2004 116.1 9.5 36.5 – –

While some European markets saw a double-digit sales decline, in Germany revenue from the sale of music products fell by a more modest 4.2%. Physical sales remain the backbone of the German music industry, accounting for 87% of all sales. German music companies have increased the number of physical formats available, introducing CDs with enhanced material including booklets and attractive additional content, helping maintain sales in the physical sector. Of the 10 best selling albums of 2008, eight were available in deluxe versions.

At the same time companies continued to work towards expanding the digital sector. Digital albums continued to grow at a faster pace than single tracks, now accounting for 26% of digital sales. However, Germany’s digital share of the market remains well below the global average, at only 8%. As much as 40% of the German population is now older than 50 years old. This demographic profile also bodes well for physical music formats and may explain a slower take-up of digital services, despite the fact that digital purchasing among 33-49 year olds grew in 2008. The share of 50+ consumers buying digital music remained stable at 8% in 2008. The strength of physical retail and relatively low rates of credit card usage are also partly attributable for the slower shift towards digital consumption.



1 Amy Winehouse Back To Black Universal Music

2 Ich + Ich Vom Selben Stern Universal Music

3 Paul Potts One Chance Sony Music

4 Die Ärzte Jazz Ist Anders Universal Music

5 Udo Lindenberg Stark Wie Zwei Warner Music

6 Coldplay Viva La Vida EMI Music


8 Amy MacDonald This Is The Life Universal Music

9 Metallica Death Magnetic Universal Music

10 Duffy Rockferry Universal Music

Source: Media Control


87%

8%5%

Digital Sales By Format (Value)n Online single trackn Online albumn Subscriptionsn Other

35%

26%7%

32%

Source: GfK





Year Physical Digital Perf. Rights2008 1,416.0 123.4 88.3

2007 1,494.5 111.8 92.1

2006 1,578.4 81.8 89.1

2005 1,668.6 46.1 –

2004 1,690.4 17.6 –

Top Retailers1 Amazon

2 Karstadt

3 Media Markt

4 Mueller

5 Saturn

41


0257


Aerakis

Alpha Records

Etairia Ekdoseon (Lyra-MBI-Legend)

General Music

Heaven Music

Europe

Greece

IFPI Recording Industry In Numbers 2009 – Greece42


2007 13% 80% – 6%

2006 7% 89% – 4%

2005 – – – –

2004 – – – –

Country Data



Currency : Euro (Eur)


Chart Compiler : IFPI Greece/Deloitte

Chart Links : www.ifpi.gr

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (Source: Nielsen SoundScan International).



2007 7.6 0.3 0.2 0.3 –

2006 6.9 0.3 0.2 0.2 –

2005 7.0 0.3 0.4 0.1 –



2007 75.7 51.5 -3.0%

2006 78.1 53.1 1.9%

2005 76.6 52.1 -6.4%

2004 81.9 55.7 -5.7%



1 Michael Xatzhgiannhss 7 Universal

2 Elena Paparizou Vrisko To Logo Na Zo Sony Music

3 Ploutharhos Yannis Oti Gennietai Stin Psixi (Special) Minos - EMI

4 Michael Xatzhgiannhss Zontana Sto Likavitto07/08 Universal/M2

5 OST Mamma Mia! Universal

6 Mazoo and the Zoo Mazoo and the Zoo Legend/EGE

7 John Parios Poy Pame Meta Minos - EMI

8 Pandelis Thalassinos Apo Alla Peribolia MBI/EGE

9 Ntalaras George/ Papadoupoulos Lefteris

Afieroma Ston Leftieri papadopoulo - Tha Pio Apopse To Feggari - Zontani Ikhografisi Legend/EGE

10 Anna Vissi Apagorevmeno Sony Music


81%

10%

9%

Digital Sales By Format (Value)n Ringback tonesn Mastertonesn Subscriptionsn Mobile single track n Online single trackn Other

39%26%

11%9%8%

7%





2007 65.7 5.7 4.3

2006 70.9 4.6 2.6

2005 76.6 – –

2004 81.9 – –

42

RIN 09 Greece - Hungary.indd 2 7/5/09 15:37:00

4836

IFPI Recording Industry In Numbers 2009 – Hungary 43


CLS

Fekete Szemek

Hammer Music

Hungaroton

Record Express

Europe

Hungary

Recorded Music Sales (Trade Value)Year US$ (M) Local Currency (M) Change2008 33.2 5,731.0 -24.2%

2007 43.8 7,561.3 -5.0%

2006 46.1 7,959.6 19.4%

2005 38.6 6,666.0 -15.1%

2004 45.5 7,855.6 -4.4%


Country Data



Currency : Forint (HUF)


Chart Compiler : MAHASZ

Chart Links : www.mahasz.hu

Performance rights music licensing company : MAHASZ

Link : www.mahasz.hu




2007 4.5 0.2 0.2 – –

2006 4.7 0.2 0.5 – –

2005 4.2 0.2 0.9 – –

2004 5.4 0.2 2.0 – –

The Hungarian music market saw a steep decline in 2008, with sales falling by 24.2%. The physical market performance drove this decline (-29.9%) while digital sales also fell. The worsening economic climate impacted heavily on the Christmas sales period, with nearly all retail outlets suffering declining sales.

In the digital market, sales of mastertones fell significantly due to the wide availability of software that allows consumers to create their own mastertones, sideloading and Bluetooth mobile sharing. The online market is still struggling to take off and subscription services are still very much in their infancy.

Mobile internet services are on the rise in Hungary and stiff competition among service providers resulted in a steady decrease in access prices. 3G phones, iPods and many other music enabled devices are becoming more common. One key factor influencing consumers’ decision when buying mobile phones is the handset’s ability to play music. However the majority of the music played on consumers’ mobiles is not paid for.

Internet piracy remains a big challenge for the Hungarian music industry. While online downloading is expanding rapidly, many consumers order burned CDs online. Torrent sites and DC++ are the main channels for obtaining music illegally. Locally-based FTP servers offering downloads for money (typically via highly priced SMS) from local and foreign web-hosting sites is an ongoing problem. The FTP servers typically host content which is available for download through a “store front” website that provides information to users on how to register and pay via SMS for access to the illegal content on the servers. A few successful raids in key locations concerning major servers have had a significant, even if only short term, effect in decreasing the volume of illegal traffic.

Performance rights is the most promising sector for the Hungarian industry. Users of copyrighted sound recordings, such as jukebox operators, shop owners and DJs, are increasingly aware of their obligation to pay for the music they use (via licensing). With the publicity around performance rights affairs, the awareness has started to penetrate strongly and visibly into the general public.


2007 22% 59% – 19%

2006 22% 74% – 4%

2005 – – – –

2004 – – – –



Digital Sales By Format (Value)n Mastertonesn Ad-supportedn Online single track n Online album n Online streamsn Other

32%28%

13%10%

9%

8%76%

4%

20%





2007 36.4 1.2 6.2

2006 40.1 0.6 5.3

2005 38.6 – –

2004 45.5 – –

43

RIN 09 Greece - Hungary.indd 3 7/5/09 15:37:05

0257


Edel

Sugar

Time

Recorded music sales in Italy fell by 17.0% in 2008 – the biggest decline among the top five European music markets. Physical sales fell by 21.4%, well above the global average. Digital sales rose by only 2.4%, against a 24.1% growth in digital sales at a global level. Mobile sales saw a significant decline in 2008, now accounting for 35% of digital sales in Italy (compared to 53% in 2007). There was progress in the online sector in 2008 and ad-supported models now account for 7% of digital revenues in Italy. Performance rights grew by 25.7% in 2008, outpacing the global average.

Domestic repertoire accounted for 56% of CD sales, with international sales claiming 39% and classical 5%. In 1999, the peak year for the Italian music market, 43% of music sales came from domestic repertoire, 52% from international and 5% from classical.

Illegal downloading continues to hamper the development of a legal online business in Italy. It is estimated that 99% of all files downloaded in Italy are unauthorised. 18% of internet users download music illegally according to research.

Europe

Italy

IFPI Recording Industry In Numbers 2009 – Italy44


2007 392.7 267.0 -16.9%

2006 472.4 321.2 -6.3%

2005 504.1 342.8 -0.3%

2004 505.8 343.9 -7.1%



2007 44% 53% – 3%

2006 30% 57% 1% 12%

2005 30% 69% 1% –

2004 23% 77% – –

Country Data





Chart Compiler : FIMI/AC Nielsen

Chart Links : www.fimi.it

Performance rights music licensing company : SCF

Link : www.scfitalia.it

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. 2008 physical volumes not available. Single tracks refer to online single track sales only (source: Nielsen SoundScan International).


Year CD Music Video Other Physical Single Tracks Digital Albums2008 – – – 6.6 –

2007 25.5 1.1 0.4 4.9 –

2006 28.8 1.7 0.7 2.9 –

2005 31.6 1.8 1.0 1.1 –



1 Jovanotti Safari Universal Music

2 Vasco Rossi Il Mondo Che Vorrei EMI

3 Laura Pausini Primavera In Anticipo WMI

4 Ligabue Secondo Tempo WMI

5 Guisy Ferreri Non Ti Scordar Mai Di Me Sony Music

6 Amy Winehouse Back To Black Universal Music

7 Madonna Hard Candy WMI

8 G Nannini Gianna Best Universal Music

9 Tiziano Ferro Alla Mia Eta’ EMI

10 Ferreri Giusy Gaetana Sony Music


82%

9%

9%

Digital Sales By Format (Value)n Online single trackn Online album n Mastertonesn Mobile single track n Online streamsn Other

25%19%

20%

18%

12%

6%





2007 341.7 28.2 22.8

2006 422.7 27.9 21.8

2005 485.7 18.4 –

2004 501.4 4.3 –

Top Retailers1 Feltrinelli

2 FNAC

3 Mediaworld

4 Mondadori

5 SGM (Marco Polo)

44

RIN 09 Italy - Netherlands.indd 2 7/5/09 15:44:48

4836

IFPI Recording Industry In Numbers 2009 – Netherlands 45


Artist & Company

Challenge Record Services

CNR Records

Play It Again Sam

Rough Trade

Music sales in the Netherlands fell by 9.9% driven by a steep decline in physical sales (-14.8%). Digital sales continued to grow, now accounting for 6% of the Dutch music market. Netherlands is the sixth biggest market for performance rights, which now account for 18% of music sales.

Domestic repertoire performed well in 2008. Five out of the top 10 best selling albums were local acts. Overall entertainment product sales (CDs, DVDs and games) rose 2.8% in 2008, with games leading this growth. Sales of DVDs fell by 5.2%.

Europe

Netherlands


2007 301.9 205.3 -1.9%

2006 307.7 209.3 6.2%

2005 289.8 197.0 -14.3%

2004 338.1 229.9 -9.3%



2007 83% 15% 2% –

2006 80% 19% 1% –

2005 76% 18% 6% –

2004 61% 36% 3% –

Country Data





Chart Compiler : GfK Megacharts BV

Chart Links : www.megacharts.nl

Performance rights music licensing company : NVPI/SENA

Link : www.nvpi.nl | www.sena.nl

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (source: Nielsen SoundScan International). Digital album source: Media Control GfK International GMBH



2007 18.8 3.0 1.1 2.9 –

2006 19.3 3.5 1.8 2.5 –

2005 20.4 4.6 2.2 1.3 –




2 Amy Macdonald This Is The Life Universal

3 Marco Borsato White Light Universal


5 Nick & Simon Today Artist & Company

6 Jan Smit Silence In The Storm Artist & Company


8 Alain Clark Live It Out 8Ball

9 Anouk Who’s Your Momma EMI



76%

6%

18%

Digital Sales By Format (Value)n Online single trackn Online album n Online streamsn Mastertones n Ad-supportedn Other

40%

4%

34%

10%

5%7%





2007 243.9 12.4 45.5

2006 264.2 9.7 33.8

2005 283.9 5.8 –

2004 336.8 1.3 –

Top Retailers1 BOL.com

2 Free Record Shop

3 Vanleest

4 Media Markt

5 Music Store

45

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0257


Bonnier Amigo Music Norway

Playground Music

Tuba Records

Tylden (Bare Bra Musikk)

Voices Music & Entertainment

Europe

Norway

IFPI Recording Industry In Numbers 2009 – Norway46


2007 140.3 792.7 -2.3%

2006 143.6 811.6 -5.3%

2005 151.8 857.5 -11.7%

2004 171.9 971.2 1.9%



2007 63% 37% – –

2006 54% 46% – –

2005 61% 39% – –

2004 – – – –

Country Data



Currency : Norwegian Krone (NOK)


Chart Compiler : Ns Newspaper/IFPI Norway

Chart Links : www.ifpi.no

Performance rights music licensing company : Gramo

Link : www.gramo.no

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (source: Nielsen SoundScan International)



2007 9.2 0.4 0.3 3.4 –

2006 9.7 0.4 0.4 1.3 –

2005 11.0 0.3 0.6 0.5 –



83%

9%8%

Digital Sales By Format (Value)n Online single trackn Online album n Mobile single trackn Mastertones n Other

35%

37%

11%

10%7%





2007 122.6 8.1 9.6

2006 131.2 5.0 7.5

2005 149.7 2.0 –

2004 171.9 – –

46

RIN 09 Norway - Poland.indd 2 7/5/09 15:49:53

4836

IFPI Recording Industry In Numbers 2009 – Poland 47


Agora

Fonografika

Metal Mind Production

Reader’s Digest

Sonic

Europe

Poland


2007 101.9 245.6 16.4%

2006 87.6 211.0 1.9%

2005 85.9 207.0 -7.5%

2004 92.9 223.9 -4.8%



2007 3% 96% 1% –

2006 14% 85% 1% –

2005 – – – –

2004 – – – –

Country Data



Currency : Zloty (PLN)


Chart Compiler : ZPAV/Pentor Research Institute

Chart Links : www.zpav.pl

Performance rights music licensing company : ZPAV

Link : www.zpav.pl

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other.



2007 9.8 0.5 0.1 – –

2006 7.9 0.6 0.3 – –

2005 9.0 0.4 0.4 – –



1 Feel Feel Gorgo/Pomaton

2 Rózni Wykonawcy Kids...The Best Ever! Pomaton

3 Soundtrack Mamma Mia! Polydor UK

4 Rózni Wykonawcy Love...The Best Ever! Pomaton

5 Rózni Wykonawcy The Best Christmas...Ever! Pomaton

6 Rózni Wykonawcy ...The Best Movie Ever! Pomaton

7 Metallica Death Magnetic Mercury UK

8 Various Radio Zet Power Of Music Summer 2008 Magic Records

9 Various RMF FM Best In Polish Music Vol.2 Izabelin

10 David Gilmour Live In Gdansk EMI


92%

4% 4%

Digital Sales By Format (Value)n Ad-supportedn Ringback tones n Mastertonesn Mobile single track n Other

26%

24%22%

15%

13%



Top Retailers1 Empik

2 Media Markt

3 Carrefour Polska

4 Auchan Polska

5 Kolporter



2007 95.5 2.7 3.7

2006 85.1 0.4 2.0

2005 85.9 – –

2004 92.9 – –

47

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0257


Espacial

Farol Musica

iPlay

Vidisco

Europe

Portugal

IFPI Recording Industry In Numbers 2009 – Portugal48


2007 77.6 52.8 -13.4%

2006 89.6 60.9 -6.0%

2005 95.4 64.9 -8.9%

2004 104.7 71.2 -25.6%



2007 24% 75% 1% –

2006 15% 85% – –

2005 – – – –

2004 – – – –

Country Data





Chart Compiler : AFP/AC Nielsen

Performance rights music licensing company : Audiogest AFP

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (source: Nielsen SoundScan International).



2007 4.7 0.8 0.2 0.4 –

2006 6.0 1.0 0.3 0.2 –

2005 7.0 0.8 0.7 0.1 –



1 Tony Carreira O Homem Que Sou Farol Musica

2 Just Girls Just Girls Farol Musica

3 Banda Sonora Original Mamma Mia EMI

4 Mariza Terra EMI


6 Kizomba Brasil Kizomba Brasil Farol Musica

7 Mariza Concerto Em Lisboa EMI


9 Varios Artistas Morangos Com Acucar Vol. 10 Farol Musica

10 Abba Abba Gold Universal


90%

6%4%

Digital Sales By Format (Value)n Mastertonesn Online single track n Online albumn Mobile single track n Online streams n Ringback tones n Mobile streams n Other

24%

13%

12%12%9%

7%6%

17%



Top Retailers1 FNAC

2 Sonae

3 Auchan

4 El Corte Inglés

5 Media Markt



2007 71.2 3.8 2.6

2006 83.6 3.7 2.4

2005 95.4 – –

2004 104.7 – –

48

RIN 09 Portugal - Russia.indd 2 7/5/09 15:56:11

4836

IFPI Recording Industry In Numbers 2009 – Russia 49

The Russian recorded music market saw a modest decline in 2008 of 2.4%. Physical sales fell by 5.8% while digital revenues more than doubled. The performance rights sector is still in its infancy. In Eastern Europe, Russia acquired the most broadband subscribers in 2008. However, the digital market in Russia is still dominated by mobile sales. Ringback tones account for over half of all revenues, followed by mastertones and monophonic/polyphonic ringtones. 2008 saw some progress in the development of the online music sector. Online stores are at the initial stages, attracting and accumulating customers. Ad-supported streaming services and subscription services are generating more interest.

In the physical retail sector, there has been fast development in Moscow and St. Petersburg. CD sales are being driven by improved physical retail, but film DVDs are becoming more important at the expense of music. The high rate of piracy, the reduction in consumer spending following the economic slowdown and the devaluation of the local currency all have contributed to a decline in music sales in 2008.

In terms of repertoire, sales are split 72% domestic, 25% international and 3% classical (units). Russia’s domestic music industry is mainly driven by live performance. Most commercial music is electronic or dance-based. Rock bands are in ascendance as are acts that have had TV appearances (several Pop Idol-like shows are broadcast across the country).

Europe

Russia


2007 226.2 5,626.5 -1.6%

2006 229.9 5,718.6 4.4%

2005 220.2 5,477.4 -37.5%

2004 352.3 8,762.8 44.3%


Digital Sales By SectorYear Online Mobile Subscriptions Other2008 20% 80% – –

2007 – 100% – –

2006 – 100% – –

2005 – – – –

2004 – – – –

Country Data



Currency : Rouble (RUB)


Performance rights music licensing company : RPA

Link : www.rpa-society.com




2007 75.0 – 8.2 – –

2006 72.1 – 12.9 – –

2005 68.5 0.4 27.7 – –

2004 58.0 0.3 60.7 – –


95%

3%

2%

Digital Sales By Format (Value)n Ringback tonesn Mastertones n Other

55%

5%

40%





2007 222.1 3.5 0.7

2006 228.8 0.8 0.3

2005 220.2 – –

2004 352.3 – –

Note: 2008 performance rights figures refer to monies collected in 2007 and distributed in 2008.

49

RIN 09 Portugal - Russia.indd 3 7/5/09 15:56:15

0257

IFPI Recording Industry In Numbers 2009 – Slovakia50

Europe

Slovakia


2007 9.9 209.0 -2.4%

2006 10.1 214.2 -0.9%

2005 10.2 216.0 –

2004 – – –


Country Data



Currency : Slovak Koruna (SKK)


Note: Music video refer to DVD.


Year CD Music Video Other Physical Single Tracks Digital Albums2008 1.7 0.1 – – –

2007 1.1 – – – –

2006 1.0 0.1 – – –

2005 1.2 – – – –

2004 – – – – –

Recorded Music Sales By Sectorn Physicaln Digital

67%

33%

Digital Indicators (Millions)Internet users 2.7Broadband lines –Mobile subs 5.5Portable player users –

World RankingPhysical sales 45Digital sales –Performance rights 31Total market 45


Year Physical Digital Perf. Rights2008 6.6 – 3.2

2007 7.3 – 2.6

2006 8.4 – 1.7

2005 10.2 – –

2004 – – –

50

RIN 09 Slovakia - Spain - Sweden.indd 2 7/5/09 15:59:06

4836


Avispa

Blanco Y Negro

Discmedi

Divucsa

Harmonia Mundi Iberica

Spanish music sales fell by 7.8% in 2008, lead by a sharp drop in physical sales (-12.4%). Digital sales grew modestly in 2008 by 7.5%, and accounted for 10% of overall music sales in Spain. Performance rights on the other hand saw a 19.2% increase on 2007. The Spanish market peaked in 2001 and music sales have since fallen by 56%.

Spain’s piracy rate is among the highest in Western Europe. 22% of the Spanish population aged 16+ download music illegally. This translates to 62% of internet users (GfK Group). Among consumers under 24 years old, 81% of internet users download content from P2P sites. 44%

of illegal downloaders are from a middle-class background and a further 29% from upper middle-class.

Physical piracy remains a problem in Spain. 10% of the population aged 16+ buy pirated discs. Over a third of pirate CD buyers are from a low income background, most are not digitally engaged and 14% don’t have Spanish nationality (GfK Group).

As a result of the country’s soaring piracy rates, very few new local artists achieve commercial hits. In 2008 there were only three local artists in the top 50 albums (Ainhoa Arteta, Amaia Montero and Pitingo). Five years ago 10 new local artists

featured in the top 50 chart. The economic environment as well as conservative media coverage that focuses on established acts has led many record companies to cut down in new local artist signings.

In an effort to stimulate the digital market, Vodafone has launched a music access service, offering an unlimited download service to its data plan customers without additional cost. The service is powered by RealNetworks and offers users the ability to purchase downloads in DRM-free format. Movistar, another subscription service launched in 2007, offers access to over one million songs for a monthly fee of €6.

Europe

Spain

IFPI Recording Industry In Numbers 2009 – Spain 51

Country Data





Chart Compiler : GfK/Nielsen Music Control

Chart Links : www.promusicae.es

Performance rights music licensing company : AGEDI

Link : www.agedi.es

El Canto Del Loco



51


0257

IFPI Recording Industry In Numbers 2009 – Spain52


2007 328.1 223.1 -19.9%

2006 409.6 278.5 -5.6%

2005 434.0 295.1 -5.1%

2004 457.2 310.9 -12.1%



2007 17% 72% – 11%

2006 17% 80% – 3%

2005 24% 76% – –

2004 7% 93% – –

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only. (Source: Nielsen SoundScan International).



2007 21.1 2.0 0.7 7.2 –

2006 25.9 2.5 1.2 1.8 –

2005 31.1 3.4 1.8 0.3 –



1 El Canto Del Loco Personas Sony Music

2 Miguel Bose Papito Warner DRO


4 Serrat & Sabina Dos Pajaros De Un Tiro Sony Music

5 Manolo Garcia Saldremos A La Lluvia Sony Music

6 Estopa Allenrok Sony Music

7 Amaral Gato Negro Dragon Rojo EMI Music

8 Rosario Parte De Mi Universal/Vale Music

9 Amaia Montero Amaia Montero Sony Music

10 Fito Y Los Fitipaldis Por La Boca Vive El Pez Warner DRO


78%

10%

12%

Digital Sales By Format (Value)n Mastertonesn Mobile single tracks n Online single tracksn Online album n Ringback tone n Mobile music videon Other

31%19%

5%

18%14%

6%

7%



2007 270.9 27.0 30.2

2006 364.6 20.0 25.0

2005 429.1 4.9 –

2004 454.8 2.4 –

Europe

Spain

52


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RECORDING INDUSTRY IN NUMBERS 2009


Bonnier Amigo Music Group

Family Tree Music

Playground Music Scandinavia

Roxy Recordings

Sound Pollution Recordings

Europe

Sweden


2007 153.9 1,014.4 -9.3%

2006 169.8 1,118.9 -1.1%

2005 168.0 1,106.9 -9.0%

2004 184.7 1,216.9 -17.4%



2007 58% 33% 8% 1%

2006 42% 47% 8% 3%

2005 48% 47% 5% –

2004 16% 78% 6% 2%

Country Data



Currency : Swedish Krona (SEK)


Chart Compiler : GLF/IFPI Sweden

Chart Links : www.sveringetopplistan.se

Performance rights music licensing company : IFPI Sweden

Link : www.ifpi.se

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (Source: Nielsen SoundScan International).



2007 13.0 0.6 1.0 3.0 –

2006 15.2 0.6 1.0 1.8 –

2005 15.4 0.6 1.4 0.5 –



83%

8%9%

Digital Sales By Format (Value)n Online albumn Online single track n Subscriptions n Mobile single trackn Mastertones n Other

29%

25%16%

16%

8%

6%


1 Duffy Rockferry Polydor

2 Eros Ramazzotti E2 Ariola

3 Metallica Death Magnetic Mercury


5 Il Divo The Promise Syco

6 Sanna, Shirley, Sonja Our Christmas Lionheart Records


8 Takida Bury The Lies Ninetone

9 Amanda Jenssen Killing My Darlings Epic

10 Hâkan Hellström För Sent För Edelweiss Dolores

IFPI Recording Industry In Numbers 2009 – Sweden 53



Top Retailers1 CD On

2 Ginza

3 Åhléns

4 Statoil

5 Maxi/ICA

6 Coop

7 Media Markt

8 Skivlagret

9 Bengans

10 Rocks



2007 130.5 10.2 13.2

2006 148.3 9.1 12.4

2005 164.4 3.5 –

2004 184.4 0.2 –

53


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K-Tel International AG

Musikvertrieb AG

Phonag Records AG

TBA AG

Tudor Recording AG

Europe

Switzerland

IFPI Recording Industry In Numbers 2009 – Switzerland54


2007 203.5 219.7 -3.9%

2006 211.8 228.7 -11.1%

2005 238.4 257.4 -3.5%

2004 246.9 266.7 -7.2%



2007 76% 23% 1% –

2006 79% 21% – –

2005 77% 21% 2% –

2004 – – – –

Country Data



Currency : Swiss Franc (CHF)


Chart Compiler : Media Control AG

Chart Links : www.hitparade.ch | www.media control.de

Performance rights music licensing company : SUISA

Link : www.suisa.ch/en/

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (source: Media Control GfK International GMBH).



2007 11.6 0.3 1.0 5.6 0.6

2006 12.7 0.4 1.4 1.9 0.2

2005 15.1 0.4 2.3 – –



90%

7%

3%

Digital Sales By Format (Value)n Online single trackn Online album n Mastertonesn Subscriptions n Other

39%

38%

6%

11%6%



Top Retailers1 FNAC

2 Manor

3 Media Markt

4 Ex Libris

5 City Disc



2007 186.2 11.8 5.5

2006 204.0 7.0 0.9

2005 234.9 3.5 –

2004 246.9 – –

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Europe

Turkey

IFPI Recording Industry In Numbers 2009 – Turkey 55


2007 89.7 117.5 -8.9%

2006 98.5 129.0 -8.6%

2005 107.7 141.1 -7.5%

2004 116.5 152.6 17.7%

Note: Performance rights and digital revenues included from 2006.

Note: Digital and performance rights values provided by MU-YAP.

Digital Sales By SectorYear Online Mobile Subscriptions Other2008 35% 65% – –

2007 10% 90% – –

2006 12% 88% – –

2005 – – – –

2004 – – – –

Country Data



Currency : Turkish Lira (TRY)


Performance rights music licensing company :

MU-YAP

Link : www.mu-yap.org

Note: Other physical includes singles, vinyl, cassette and other.



2007 13.3 – 4.3 – –

2006 13.5 – 9.4 – –

2005 12.5 – 14.7 – –

2004 14.6 – 28.9 – –Note: Splits provided by MU-YAP to reflect sales by sector including independent label sales.


91%

6%3%

Digital Sales By Format (Value)n Ringback tonen Online single track n Mastertonesn Internet

28%

20%17%

35%


Avrupa Müzik Yapim

Dogan Müzik Yapim

Emre Grafson Müzik Sanat

Kalan Müzik Yapim

Seyhan Müzik ProdüksiyonDigital Indicators (Millions)Internet users 26.5Broadband lines 5.8Mobile subs 62.3Portable player users –




2007 84.8 2.1 2.8

2006 96.2 0.5 1.8

2005 107.7 – –

2004 116.5 – –

55

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All Around The World

B Unique

Crimson

Decadence

Domino

Ministry Of Sound

Red Box

Rolled Gold

Sanctuary

V2 Music

XL Recordings

Source: OCC

Europe

United Kingdom

IFPI Recording Industry In Numbers 2009 – United Kingdom56

Country Data



Currency : British Pound (GBP)


Chart Compiler : OCC/Millward Brown

Chart Links : www.theofficialcharts.com

Performance rights music licensing company : PPL

Link : www.ppluk.com

Despite a turbulent year, the UK music industry managed to post a loss in sales of less than 5%, thanks to strong growth in digital sales and a strengthening performance rights sector. In the final quarter of 2008, the UK industry faced closures of retail outlets Woolworths and Zavvi, as well as the distributors EUK and Pinnacle going into administration due to the current recession.

The UK digital market saw an increase of 58.3% in 2008 in trade value. 109.8 million single tracks were downloaded in 2008, up 42% on 2007. Digital album sales also rose sharply, up 65% (OCC). The UK hosted the launch of the first Nokia Comes With Music service late in 2008 as well as AmazonMP3’s entry in the European market. Growth in online sales came primarily from consumers aged over 45 (Entertainment Media Research).

British artists continued to drive local sales, accounting for 49% of artist album sales. The popularity of the TV show X Factor is clearly reflected in the 2008 singles chart. Winner Alexandra Burke’s cover of Leonard Cohen’s Hallelujah was the biggest selling single of the year, with sales of nearly 900,000 copies.

This was followed by the show’s finalists’ version of Mariah Carey’s Hero. These two titles were also the biggest selling physical singles of the year with cumulative sales of nearly a million.

In the albums market Duffy’s debut Rockferry topped the annual chart with 1.7m copies sold. There were several other UK artists among the best sellers, including Take That, Leona Lewis and Coldplay. All three editions of the Now compilation series made the top 10, as did the Mamma Mia! soundtrack which underpinned an improved year for compilation sales which fell by only 1.4% in 2008.

Digital music piracy remains a big threat to the UK music industry and until robust, practical measures are put in place to restrict access to unlicensed music online, legitimate services seeking to establish themselves in the marketplace will suffer unfairly. It is hoped that the ‘Digital Britain’ process will lead to either a self-regulating agreement between rights holders and the telecoms sector or legislation to ensure the protection of copyright online. In the UK market alone, the music industry lost £180 million in 2008, and will lose more than £1 billion by 2012 if nothing is done (Jupiter Research, 2007).

Harris Interactive estimates that five services account for around 70% of P2P usage in the UK. The Pirate Bay, uTorrent and Mininova were chosen by a large proportion of heavy file-sharers (those illegally downloading 20+ songs per month). Among female P2P users Limewire was the most popular service.

There has been a clear move towards in-home leisure spending in the UK with that sector growing by 4.4% in 2008 (Sheffield Hallam University), but games and DVD sales fared better compared to music. Game software sales grew by 21% in value, led by the popularity of the Nintendo Wii (GfK Chart-Track/ELSPA). Games also have a higher number of retailers in the UK compared to music or film. While the number of music retailers fell by 7.7% between 2005 and 2008 (Millward Brown/OCC), the number of games retailers grew by 1.2% (GfK Chart-Track). The DVD market was up 0.1% in 2008 (OCC/BVA). Illegal downloading has started to impact the film industry and that sector also saw a reduction in retail space in 2008.



Leona Lewis

Rihanna

56

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IFPI Recording Industry In Numbers 2009 – United Kingdom 57


79%

14%

7%


2007 1,892.8 1,041.0 -12.6%

2006 2,164.6 1,190.5 -1.7%

2005 2,201.0 1,210.6 -2.9%

2004 2,267.0 1,246.9 -0.4%


Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only. (Source: OCC/BPI).

Recorded Music Sales Volume (Million Units)Physical Other


2007 139.0 5.2 11.8 77.5 6.2

2006 164.4 7.3 19.8 52.5 2.2

2005 172.6 8.3 27.9 26.4 –

2004 174.6 7.7 32.6 5.8 –

Digital Sales By Format (Value)n Online single trackn Online albumn Subscriptionsn Mobile single track n Mastertonesn Other

40%

9%

33%

7%

5%

6%


2007 72% 23% 3% 2%

2006 64% 34% 2% –

2005 58% 38% 4% –

2004 58% 32% 10% –


1 Duffy Rockferry A&M

2 Take That The Circus Polydor

3 Kings Of Leon Only By The Night Hand Me Down

4 Leona Lewis Spirit Syco Music


6 OST Mamma Mia! Polydor

7 Various Artists Now Thats What I Call Music! 71 EMI TV/UMTV



10 Rihanna Good Girl Gone Bad Mercury

Album Sales By Genre 2008 (Units)Rock 36%

Pop 25%

R&B 11%

Dance 8%

MOR/Easy Listening 7%

Classical 4%

Hip Hop/Rap 2%

Country 2%

Jazz 2%

Folk 1%

Other 3%

Source: BPI

Music Sales By Chart PositionChart Position % Change 2007-20081-10 +10.2%

11-20 +4.0%

21-30 -5.6%

31-40 -10.9%

41-50 -9.6%

51-100 -9.6%

Top 100 -2.5%

Source: BPI

Source: OCC/BPI

Top Retailers1 HMV

2 Tesco

3 Zavvi

4 Woolworths

5 Asda

6 Amazon

7 iTunes



2007 1,614.6 159.4 118.8

2006 1,931.5 120.2 112.9

2005 2,131.8 69.2 –

2004 2,248.8 18.2 –

57

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HY Brothers

Modern Sky

Taihe Rye Music Co. Ltd.

Music sales in China grew by 8.0% in 2008 aided by strong digital growth. China has one of the highest digital shares in the world, with 62% of music sales coming from digital platforms. Digital piracy continued to underscore the potential of the digital music sector in China, with an estimated piracy level of 90%.

The Chinese digital market is dominated by mobile sales, which accounted for over 80% of digital revenues. Ringback tones are by far the most important music format, although single track downloads to mobile are on the rise. Music companies currently receive 5% or less from sales of mobile music in China, highlighting a big gap between content owners’ and mobile operators’ remunerations. China Mobile’s value-added service market reached US$ 18 billion in 2008 (iResearch). The expected introduction of 3G services in China should further expand the Chinese mobile music market.

China has the highest number of internet users in the world. As much as 80% of all internet users in China are under the age of 35 years old and nearly 80% of internet users have broadband access. Research by CNNIC showed that 87% of Chinese internet users have listened to online music in the past six months, with 71% having downloaded music in the past six months.

Despite this, the legitimate online sector has failed to take off in China due to high piracy levels. The biggest infringers are the country’s largest internet companies, Baidu, Sohu-Sogu and Yahoo China, which provide specialized ‘deep link’ services giving users direct access to millions of copyright-infringing music files. Critical for the long-term success of the mobile music business in China is the ability to control piracy in this environment. The fact that credit card use is limited in China has also held back the online market, favouring mobile operators’ billing systems.

In early 2009 major music labels partnered with Google China and Top100.cn to offer a new legitimate music service to Chinese consumers. Through the service Google Music Search music labels can offer their catalogue legitimately to consumers on an ad-supported basis.

The majority of music sales in China come from international and regional repertoire. Chinese music buyers’ tastes lie in Mandarin recordings produced in or outside China. Hong Kong and Taiwan are the main exporters of Mandarin repertoire into China. Many Chinese artists record and sign their contracts in those territories – where the recording infrastructure is more developed. In addition, many Cantonese acts from Hong Kong record Mandarin versions of their releases for exploitation in China and Taiwan. Market barriers faced by non-Chinese record companies also hampers the development of Chinese artists.

Asia

China

IFPI Recording Industry In Numbers 2009 – China58

Country Data

Population (millions) : 1,330


Currency : Renminbi (RMB) | Yuan (CNY)


Performance rights music licensing company : CAVCA (for Karaoke Videos)

Link : www.cavca.org


World RankingPhysical sales 34Digital sales 9Performance rights –Total market 25

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IFPI Recording Industry In Numbers 2009 – China 59


2007 75.9 528.2 -10.4%

2006 84.7 589.8 24.5%

2005 68.0 473.6 -35.0%

2004 104.8 729.1 –

Note: Digital sales included from 2006. 2004-2003 sales are not comparable.


2007 19% 78% 3% –

2006 5% 74% 8% 13%

2005 – – – –

2004 – – – –




2007 13.1 1.5 – – –

2006 16.6 6.9 2.6 – –

2005 19.7 10.1 9.9 – –



38%

62%

Digital Sales By Format (Value)n Ringback tonesn Mobile single track n Mastertonesn Online streams n Online single track n Other

61%11%

9%

6%5%

8%


Year Physical Digital Perf. Rights2008 31.5 50.4 –

2007 41.2 34.7 –

2006 54.0 30.7 –

2005 68.0 – –

2004 104.8 – –

59

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IFPI Recording Industry In Numbers 2009 – Hong Kong60


Avex Asia Ltd.

BMA Records Ltd.

East Asia Music (Holdings) Ltd.

Emperor Entertainment (Hong Kong) Ltd.

Forward Music Co. Ltd.

Gold Typhoon Entertainment Ltd.

HNH International Ltd. (Naxos)

Neway Star Ltd.

Worldstar Music International Ltd.

WOW Music Ltd.

Asia

Hong Kong


2007 62.7 488.1 -5.7%

2006 66.4 517.3 0.5%

2005 66.1 514.8 -1.5%

2004 67.1 522.7 -12.6%


Note: Performance rights revenues include PP(SEA)L figures only.


2007 2% 50% 48% –

2006 5% 72% 23% –

2005 – – – –

2004 – – – –

Country Data



Currency : Hong Kong Dollar (HKD)


Performance rights music licensing company : PP(SEA)L and HKRIA

Link : www.ppseal.com | www.hkria.com

Note: Performance rights revenues include PP(SEA)L figures only.



2007 4.4 0.5 0.1 – –

2006 4.7 0.7 0.1 – –

2005 5.8 0.9 0.1 – –

2004 6.1 0.6 – – –Note: Other includes ad-supported revenues and other digital amounts.


76%

13%

11%

Digital Sales By Format (Value)n Subscriptionsn Ringback tones n Mobile music videon Other

41%

20%

17%

22%





2007 49.8 6.5 6.3

2006 56.5 4.6 5.4

2005 66.1 – –

2004 67.1 – –

Top Retailers1 CD Warehouse

2 HMV

60

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Aditya Music (India)

Saregama India

Super Cassettes Industries

Times Music

Tips Industries Ltd.

Venus Records & Tapes Ltd

Music sales in India were up 6.3%, with growth in digital and performance rights revenues offsetting the decline in physical sales. Hindi film soundtracks remain the biggest genre in India, making up 40% of total music sales (PWC).

The Indian music industry peaked in 2001 when recorded music revenues totalled US$ 176.4 million. Since then music sales have dropped by 20%. The Indian music industry is plagued by physical and digital piracy, facing declining prices for entertainment products, struggling to keep pace with rapidly changing music consumption and technology, facing competition from the mushrooming of radio channels, and with movie content taking precedence over all else. A study by Ernst & Young India revealed that as many as 800,000 direct jobs and US$ 4 billion are lost by the entertainment industry as a result of theft and piracy.

Asia

India

IFPI Recording Industry In Numbers 2009 – India 61

Recorded Music Sales (Trade Value)Year US$ (M) Local Currency (M) Change2008 140.4 6,151.9 6.3%

2007 132.1 5,787.6 12.4%

2006 117.5 5,147.8 4.6%

2005 112.3 4,922.1 -0.3%

2004 112.7 4,939.1 2.7%


Digital Sales By SectorYear Online Mobile Subscriptions Other2008 – 98% – 2%

2007 – 100% – –

2006 – 100% – –

2005 – – – –

2004 – – – –

Country Data

Population (millions) : 1,148.0


Currency : Indian Rupee (INR)


Performance rights music licensing company : PPL

Link : www.pplindia.org




2007 37.2 0.1 46.8 – –

2006 42.5 – 56.4 – –

2005 36.3 – 67.3 – –

2004 26.2 – 104.0 – –Note: Other includes ad-supported revenues and other digital amounts.


63%21%

Digital Sales By Format (Value)n Ringback tonesn Mastertones n Mobile single trackn Other

62%17%

14%16%

7%





2007 97.4 21.8 12.8

2006 107.3 10.2 12.4

2005 112.3 – –

2004 112.7 – –

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IFPI Recording Industry In Numbers 2009 – Indonesia62


Aquarius Musikindo

Musica Studios

Virgo Ramayana

Asia

Indonesia


2007 54.8 530,701.4 -18.2%

2006 67.0 648,411.7 33.2%

2005 50.3 486,851.7 -15.2%

2004 59.3 574,164.8 -14.8%

Note: Digital sales included from 2006.


2007 – 100% – –

2006 – 84% 16% –

2005 – – – –

2004 – – – –

Country Data



Currency : Indonesian Rupiah (IDR)

US$ Exchange Rate : 9,684.89




2007 5.0 2.7 11.7 – –

2006 4.3 2.6 16.9 – –

2005 4.4 0.7 25.0 – –



46%54%

Digital Sales By Format (Value)n Ringback tonesn Other

94%

6%





2007 32.3 22.5 –

2006 40.5 26.4 –

2005 50.3 – –

2004 59.3 – –

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Music sales in Japan bucked the trend in 2008 growing by 0.9%. Digital sales combined with performance rights revenues continued to offset the decline in physical sales. Digital revenues were up 25.4%, with mobile sales accounting for 88% of digital revenues. Full track downloads to mobile accounted for over half of mobile revenues. Performance rights grew by 3.5% in 2008.

Domestic repertoire sales continued to do better than international repertoire and continued to account for the majority

of sales in Japan. Two Japanese acts featured in the global digital single tracks chart – Thelma Aoyama and GreeeeN.

Mobile-based piracy continued to impact the industry in Japan, despite the fact that Japan has one of the lowest digital piracy rates in the world. 35% of mobile users access illegal sites to download mastertones/full tracks via their mobiles. As many as 60% of 16-19 year olds illegally download music content, up from 45% in 2006. 70% of music downloaded is of Japanese origin. The increase in

illegal downloading has particularly affected the 16-19s legal downloading patterns, followed by the 25-29s (RIAJ).

Unlike in the US and Europe, music sales in Japan outperformed other entertainment sectors in 2008. The Japanese video game software sector shrank by 7.9% in retail value in 2008, despite sales growth for the three major systems (Wii, PS3 and Xbox 360) (Enterbrain). Video sales also shrank, by 11.1% in retail value (Japan Video Software Association).

Asia

Japan

IFPI Recording Industry In Numbers 2009 – Japan 63

Country Data



Currency : Yen (JPY)


Chart Compiler : RIAJ

Chart Links : www.riaj.or.jp

Performance rights music licensing company : RIAJ

Link : www.riaj.or.jp


Avex Marketing Inc.

Being Inc.

Columbia Music Entertainment Inc.

Dreamusic Inc.

Forlife Music Entertainment Inc.

Geneon Universal Entertainment Japan, LLC

King Record Co. Ltd.

Nippon Crown Co. Ltd.

Pony Canyon Inc.

Sony Music Entertainment (Japan) Inc.

Teichiku Entertainment Inc.

Tokuma Japan Communications Co. Ltd.

VAP Inc.

Victor Entertainment Inc.

Yamaha Music Communications Co.

Yoshimoto R and C Co. Ltd.



Utada

Kobukuro

63


0257

IFPI Recording Industry In Numbers 2009 – Japan64

Recorded Music Sales (Trade Value)Year US$ (M) Local Currency (M) Change2008 4,109.0 425,159.5 0.9%

2007 4,072.9 421,426.7 0.0%

2006 4,074.3 421,562.7 2.9%

2005 3,961.0 409,845.3 0.6%

2004 3,936.1 407,265.0 1.4%



2007 8% 91% 1% –

2006 9% 91% – –

2005 9% 91% – –

2004 4% 96% – –

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks include mobile singles (RIAJ).



2007 176.5 17.3 59.8 – –

2006 197.5 18.9 65.8 – –

2005 211.8 20.3 66.7 – –



78%

20%

Digital Sales By Format (Value)n Mobile single trackn Mastertones n Ringback tonesn Online single track n Other

53%

21%

10%

10%6%

2%

Platinum Certified Album 2008Artist Title Company

Koda Kumi Kingdom Avex Marketing

Utada Hikaru Heart Station EMI Music Japan

Exile Exile Catchy Best Avex Marketing

B’z B’z The Best (Ultra Pleasure) Vermillion Records

Greeeen A, Domo. Ohisashiburi Desu Universal Music K.K.

Exile Exile Entertainment Best Avex Marketing

Namie Amuro Best Fiction Avex Marketing

Ayumi Hamasaki A Complete (All Singles) Avex Marketing

Mariya Takeuchi Expressions Warner Music Japan

Exile Exile Ballad Best Avex Marketing

Mr. Children Supermarket Fantasy Toy’s Factory

Source: RIAJ



2007 3,348.3 654.5 70.2

2006 3,565.5 654.5 69.4

2005 3,665.4 295.6 –

2004 3,813.5 122.5 –

Asia

Japan

64


RECORDING INDUSTRY IN NUMBERS 2009

4836

IFPI Recording Industry In Numbers 2009 – Malaysia 65


Hup Hup Sdn. Bhd.

Interglobal Music (Malaysia) Sdn. Bhd.

New Southern Records Sdn. Bhd.

Rock Records (M) Sdn. Bhd.

Suwah Enterprise (M) Sdn. Bhd.

Asia

Malaysia


2007 27.2 90.7 -14.0%

2006 31.6 105.5 20.7%

2005 26.2 87.4 -9.9%

2004 29.0 97.0 0.8%



2007 4% 96% – –

2006 – 98% 2% –

2005 – – – –

2004 – – – –

Country Data



Currency : Ringgit (MYR)


Performance rights music licensing company : PPM

Link : www.ppm.org.my




2007 2.1 0.5 0.2 – –

2006 2.2 0.5 0.6 – –

2005 2.2 0.7 1.4 – –



58%25%

17%

Digital Sales By Format (Value)n Ringback tonesn Mastertones n Other

70%10%

20%





2007 18.5 4.8 3.9

2006 22.9 4.9 3.8

2005 26.2 – –

2004 29.0 – –

65


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Alpha Music Corporation

Galaxy Records

Polyeast Records

Praise Inc.

Star Recording Inc.

Universal Records

Vicor Music Corporation

Viva Records

Asia

Philippines

IFPI Recording Industry In Numbers 2009 – Philippines66


2007 16.2 724.2 -19.2%

2006 20.1 896.5 -14.7%

2005 23.6 1,050.9 3.2%

2004 22.8 1,018.0 -11.3%



2007 – 100% – –

2006 – 97% 3% –

2005 – – – –

2004 – – – –

Country Data



Currency : Philippine Peso (PHP)


Performance rights music licensing company : PMPPSI




2007 3.0 0.4 – – –

2006 3.9 0.5 0.3 – –

2005 3.6 0.6 0.7 – –



85%

15%

Digital Sales By Format (Value)n Ringback tonesn Mastertones n Ad-supportedn Mobile single tracks n Online streams n Other

28%

21%19%

7%7%

18%





2007 15.2 1.1 –

2006 19.3 0.8 –

2005 23.6 – –

2004 22.8 – –

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EQ Music Pte. Ltd.

HIM International Music Pte. Ltd.

Life Records Industries Pte. Ltd.

Ocean Butterfly Music Pte. Ltd.

Rock Records (S) Ltd.

Asia

Singapore

IFPI Recording Industry In Numbers 2009 – Singapore 67


2007 27.7 39.3 -16.5%

2006 33.2 47.1 -14.2%

2005 38.6 54.9 -13.5%

2004 44.7 63.4 -8.9%



2007 5% 86% 9% –

2006 18% 81% 1% –

2005 – – – –

2004 – – – –

Country Data



Currency : Singapore Dollar (SGD)


Performance rights music licensing company : RIPS

Link : www.rips.com.sg




2007 2.4 0.1 – – –

2006 2.7 0.2 0.1 – –

2005 4.6 0.2 0.1 – –



88%

6%6%

Digital Sales By Format (Value)n Ringback tonesn Mobile single track n Mastertonesn Subscriptions n Online single track n Online streams n Other

28%

25%11%

10%

10%

9%

7%



Top Retailers1 CD Rama

2 Gramophone

3 HMV

4 Sembawang Music

5 That CD Shop

6 Mobile 1

7 Nokia Music Store

8 Singtel IDEAS

9 Soundbuzz

10 Stanhub/PLAY



2007 26.1 1.0 0.6

2006 29.7 1.1 2.4

2005 38.6 – –

2004 44.7 – –

67

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KTF Music

Loen Entertainment

Mnet Media

Neowitz Bugs

SM Entertainment

Asia

South Korea

IFPI Recording Industry In Numbers 2009 – South Korea68


2007 121.2 133,667.2 -8.4%

2006 132.4 145,970.5 84.1%

2005 71.9 79,270.0 -19.6%

2004 89.4 98,585.4 -22.0%


Digital Sales By SectorYear Online Mobile Subscriptions Other2008 52% 25% 23% –

2007 54% 33% 13% –

2006 43% 46% 11% –

2005 – – – –

2004 – – – –

Country Data



Currency : South Korean Won (KRW)





2007 6.3 0.1 0.1 – –

2006 7.9 0.1 0.2 – –

2005 9.4 0.2 1.1 – –

2004 10.9 0.1 2.4 – –

Note: Other includes ad-supported revenues and other digital amounts. Recorded Music Sales By Sectorn Physicaln Digital

40%

60%

Digital Sales By Format (Value)n Subscriptionsn Online single track n Online albumn Mastertones n Ringback tones n Other

24%

11%

10%9%

37%

9%

Music sales in South Korea grew by 16.0% in 2008 with an 18.8% increase in physical sales and a 14.3% rise in digital sales. The physical market grew for the first time in seven years, due in part to successful domestic and international albums released during the year. South Korea was the first Asian market where the digital music market surpassed sales of physical products. South Korea is now the second biggest digital market in Asia, only behind Japan, and sixth in the world. In 2008, 60% of music sales came from digital platforms.

In March 2009, the Copyright Law was amended to provide record producers and performers with the right to equitable remuneration for the public performance of their sound recordings. This will take effect in September 2009.

Physical piracy in South Korea has been overtaken by digital piracy. The National Assembly recently amended the Copyright Law in early 2009 to include provisions which establish graduated sanctions against repeat online infringers. These provisions grant the Ministry of Culture Sports and Tourism the power to order suspension, of up to six months, of the accounts of users who continue to infringe copyright after three warnings.





2007 47.5 73.7 –

2006 58.4 74.0 –

2005 71.9 – –

2004 89.4 – –

Top Retailers1 Evan Records

2 Kyobo Hottracks

3 Intenponk

4 Yes 24

5 Bugs Music

6 Cyworld

7 Melon

8 Mnet

9 Soribada

68

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Avex

Forward Music Co. Ltd.

HIM International Music Incorporated

Linfair Records Limited

Rock Records (Taiwan) Co. Ltd.

Asia

Taiwan

IFPI Recording Industry In Numbers 2009 – Taiwan 69


2007 70.2 2,214.9 -2.2%

2006 71.8 2,265.1 -29.4%

2005 101.7 3,210.5 -25.9%

2004 137.3 4,334.6 -1.1%



2007 41% 48% 11% –

2006 29% 65% 6% –

2005 – – – –

2004 – – – –

Country Data



Currency : New Taiwan Dollar (TWD)


Performance rights music licensing company : ARCO/AMCO

Link : www.arco.org.tw




2007 5.4 0.3 0.3 – –

2006 5.7 0.4 0.7 – –

2005 9.4 0.6 0.3 – –



84%

14%

2%

Digital Sales By Format (Value)n Ringback tonesn Subscriptions n Mastertonesn Other

30%

13%

5%

52%

Source: IFPI membersDigital Indicators (Millions)Internet users 15.1Broadband lines 4.7Mobile subs 22.9Portable player users –




2007 62.1 8.1 –

2006 67.0 4.8 –

2005 101.7 – –

2004 137.3 – –

69

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GMM Grammy Public Co. Ltd.

Nopporn Silver Gold Co. Ltd.

Platinum Marketing and Distribution Co. Ltd.

RS. Promotion Public Co. Ltd.

Sure-Audio Co. Ltd.

Asia

Thailand

IFPI Recording Industry In Numbers 2009 – Thailand70

Recorded Music Sales (trade value)Year US$ (M) Local Currency (M) Change2008 68.3 2,271.0 7.3%

2007 63.6 2,117.4 -14.1%

2006 74.1 2,464.7 -20.6%

2005 93.3 3,103.1 -19.7%

2004 116.2 3,865.9 0.0%



2007 4% 96% – –

2006 1% 99% – –

2005 – – – –

2004 – – – –

Country Data



Currency : Baht (THB)


Performance rights music licensing company : Phonorights (Thailand) Ltd.

Link : www.1stopmusic.com




2007 6.2 8.1 1.0 – –

2006 7.8 7.4 3.5 – –

2005 11.8 10.9 5.3 – –



63%

37%

Digital Sales By Format (Value)n Ringback tonesn Subscriptions n Mastertonesn Other

55%

18%

10%

17%

Note: Portable player users refer to devices sold in 2008.



Top Retailers1 B2S

2 GMS Major

3 Imagine

4 Mangpong

5 Media Network

6 gmember.com

7 pleng.com

8 sure-audio.com

9 truemusic.com

10 you2play.com



2007 48.1 14.9 0.6

2006 59.5 14.5 –

2005 93.3 – –

2004 116.2 – –

70

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IFPI Recording Industry In Numbers 2009 – Australia 71


Inertia

MGM

Rajon

Shock

Stomp

Australasia

Australia


2007 413.9 496.7 -9.6%

2006 458.0 549.6 -1.3%

2005 463.8 556.6 -13.0%

2004 532.9 639.5 -5.8%



2007 60% 40% – –

2006 52% 48% – –

2005 41% 59% – –

2004 47% 53% – –

Country Data



Currency : Australian Dollar (AUD)


Chart Compiler : ARIA

Chart Links : www.aria.com.au

Performance rights music licensing company : PPCA

Link : www.ppca.com.au

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (ARIA).



2007 33.8 4.5 2.6 15.0 0.8

2006 38.1 4.1 4.7 9.0 0.4

2005 37.7 3.8 8.0 2.0 0.1

2004 39.5 4.5 9.9 – –

Music sales in Australia were down 6.0% driven by a steep decline in physical sales. Digital sales, on the other hand grew significantly, now accounting for 13% of sales in Australia, up from 8% in 2007. Digital album sales saw significant growth alongside single track downloads. Performance rights also saw a double-digit increase.

Home grown talent still appeals to Australian music fans, with domestic music making up about one third of all acts in the Australian charts. While chart heavy-weights such as AC/DC, Kasey Chambers and Sneaky Sound System continued to further their previous successes, there was a strong batch of new names gracing the Australian charts – Gabriella Cilmi, Cut Copy and The Presets to name a few.

Sales in the final quarter of 2008 were strong, led by blockbuster releases from artists such as P!nk, Kings of Leon and AC/DC. Andre Rieu drove music DVD sales, accounting for nine different titles at number one, across 36 weeks of the year.

Despite the global economic outlook, the Australian industry is optimistic that overall industry sales will remain solid through 2009, due to a strong schedule of releases and extensive tour activity.



1 Kings Of Leon Only By The Night RCA/SBME

2 P!nk Funhouse LAF/SBME

3 AC/DC Black Ice ALB/SBME

4 Coldplay Viva La Vida CAP/EMI

5 The Presets Apocalypse MOD/UMA

6 Soundtrack Mamma Mia! PDR/UMA

7 Chris Brown Exclusive JVE/SBME

8 Metallica Death Magnetic MER/UMA

9 Rihanna Good Girl Gone Bad DFJ/UMA

10 Jason Mraz We Sing, We Dance, We Steal Things ATL/WAR


84%

13%

3%

Digital Sales By Format (Value)n Online single trackn Online albumn Mastertonesn Mobile single trackn Other

40%

23%

15%

9%

13%





2007 369.7 33.0 11.3

2006 423.4 23.8 10.9

2005 455.6 8.2 –

2004 531.7 1.3 –

71

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174 East Ltd.

Border Music Ltd.

Dawn Raid Music Ltd.

Liberation Music NZ Ltd.

Rhythmethod Ltd.

Shock Records

Australasia

New Zealand

IFPI Recording Industry In Numbers 2009 – New Zealand72


2007 63.6 90.9 -9.1%

2006 69.9 100.0 -9.1%

2005 76.9 110.0 -1.7%

2004 78.3 111.9 -7.4%



2007 37% 63% – –

2006 5% 95% – –

2005 – – – –

2004 – – – –

Country Data



Currency : New Zealand Dollar (NZD)


Chart Compiler : Media Sauce/RIANZ

Chart Links : www.nztop40.com

Performance rights music licensing company : PPNZ

Link : www.rianz.org.nz

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only.


Year CD Music Video Other Physical Single Tracks Digital Albums2008 4.8 0.8 – 3.0 –

2007 4.8 0.6 3.2 – –

2006 6.0 0.6 2.4 – –

2005 6.7 0.5 1.6 – –

2004 6.7 0.5 0.8 – –

Recorded music sales in New Zealand were down 7.0% in 2008. A 10.1% fall in physical sales was partly offset by a 21.7% increase in digital sales and a 21.7% rise in performance rights revenues. Digital sales now account for 9% of New Zealand’s music market despite the demise of two digital music providers – Coke Tunes and Txt tunes. The opening of the 12,000 capacity Vector Arena as a centre for live events has seen a marked increase in the number and frequency of bigger international acts performing in New Zealand. Recent performances at Vector Arena include Kings of Leon, Coldplay, Red Hot Chili Peppers, Foo Fighters, Billy Joel and Eric Clapton.

Proposed amendments to the Copyright Act 1994, addressing copyright infringing online file-sharing activity were postponed by the new National Government. The proposed provision requiring ISPs to adopt a reasonable policy for terminating the internet accounts of repeat copyright infringers will now be reworked to provide greater clarity for ISPs as to how they will need to address the infringing peer-to-peer file-sharing activity that is negatively impacting the legitimate sales of recorded music. The New Zealand government has announced a US$1.5 billion investment to deliver ultra-fast broadband to 75% of the population within 10 years through public-private partnerships.



1 Billy T James The Comic Genius of Billy T James Sony Music

2 Kings Of Leon Only By The Night Sony Music

3 Mamma Mia Cast Mamma Mia: The Movie Universal



6 Coldplay Viva La Vida Parlophone/EMI


8 P!nk Funhouse Sony Music

9 Tiki Taane Past, Present, Future Dirty Dub/ Rhythmethod

10 The Feelers The Best: 1998-2008 WEA/Warner


87%

9%4%

Digital Sales By Format (Value)n Online single trackn Online albumn Mastertonesn Mobile single trackn Other

30%

22%14%

26%

8%



Top Retailers1 iTunes

2 JB HiFi

3 The CD & DVD Store

4 The Warehouse

5 Vodafone



2007 57.4 4.3 1.9

2006 65.4 3.0 1.5

2005 76.9 – –

2004 78.3 – –

72

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IFPI Recording Industry In Numbers 2009 – Argentina 73


Distribuidora Belgrano Norte

EPSA Music

Leader Music

Music Brokers

Pop Art

Latin America

Argentina


2007 63.3 200.6 9.3%

2006 57.9 183.6 23.1%

2005 47.0 149.1 28.2%

2004 36.7 116.3 24.3%

Note: Digital sales and performance rights included from 2006.


2007 1% 99% – –

2006 9% 91% – –

2005 – – – –

2004 – – – –

Country Data



Currency : Argentina Peso (ARS)


Chart Compiler : CAPIF

Chart Links : www.capif.org.ar

Performance rights music licensing company : CAPIF

Link : www.capif.org.ar




2007 15.0 1.3 0.1 – –

2006 14.4 1.0 0.3 – –

2005 13.8 0.6 0.6 – –


Recorded Music Sales By Sectorn Physicaln Digital n Performance rights

87%

4%

Digital Sales By Format (Value)n Mastertonesn Mobile single track n Ringback tonesn Ad-supported n Other

64%15%

11%

9%

2%

8%Top Selling Albums 2008Artist Title Company

1 Various Life Is A Fiesta - Patito Feo EMI

2 Luis Miguel Complices Warner

3 Teenangels Teenangels Li Sony Music


5 Ricardo Arjona Fifth Floor Warner

6 Serrat & Sabina Two Birds With One Stone Sony Music

7 AC/DC Black Ice (Deluxe) Sony Music


9 Jonas Brothers Jonas Brothers Universal

10 Various Camp Rock Universal



Top Retailers1 10 Musica

2 Eden

3 M24

4 Musimundo

5 Personal Musica

6 Ubbimusica

7 Yenny/El Ateneo

8 Zapmusic



2007 56.4 2.1 4.7

2006 53.1 1.1 3.7

2005 47.0 – –

2004 36.7 – –

73

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Atração Fonográfica

Biscoito Fino

CID Entertainment

Deck Disk

Indie Records

MD Music

MK Music

Som Livre

Music sales in Brazil grew by 8.1% in 2008, following a sharp drop in revenues in 2007 and 2006. Physical sales grew by 1.2% while digital revenues were up 78.9%. The performance rights sector also experienced an increase of 12.8% compared to 2007. Focus group research carried out in 2008 among 16-29 year olds, middle/upper class background, in the three major cities of the country found that young Brazilians are digitally connected and tech savvy. All young consumers that took part in the study owned an iPod or an MP3 player, many using their mobile phone as their music player.

PC and internet usage was also widespread, with around 70% using MSN, Orkut and email on a daily basis, 30% accessing sites to download music daily and 20% visiting YouTube every day. Demand for music remains high among young Brazilians, but most of this demand is met by P2P file-sharing. 80% of students claimed to have downloaded music from illegal file-sharing sites, although 53% still buy legitimate CDs. Only 20% of young consumers said they buy pirated CDs. Brazil’s physical piracy rate has gone down to about 48% from a high of 55% during the past two years. This decrease can be attributed to the work of the CNCP (the government’s anti-piracy council) and the successful merger of the music and film anti-piracy arms. Nevertheless, some of the decrease in physical piracy can be accounted for by a shift to internet piracy.

Latin America

Brazil

IFPI Recording Industry In Numbers 2009 – Brazil74




2007 205.2 377.5 -25.1%

2006 274.0 504.2 -21.8%

2005 350.5 645.0 -12.3%

2004 399.8 735.7 17.5%



2007 12% 79% 9% –

2006 2% 96% 2% –

2005 13% 87% – –

2004 – – – –

Country Data



Currency : Real (BRL)


Chart Compiler : ABPD

Chart Links : www.abpd.org.br

Performance Rights Music Licensing Company : ABRAMUS

Link : www.abramus.org.br




2007 26.6 5.7 – – –

2006 33.0 6.0 – – –

2005 42.3 6.5 4.5 – –



81%

13%

6%

Digital Sales By Format (Value)n Mobile single trackn Mastertones n Subscriptionsn Online streams n Other

55%

16%

9%

7%

13%Top Selling Albums 2008Artist Title Company

1 Padre Fábio de Melo Vida Som Livre

2 Padre Marcelo Rossi Paz Sim, Violência Não (Volume 1) Sony Music

3 Victor & Leo Borboletas Sony Music

4 Victor & Leo Ao Vivo Em Uberlândia Sony Music

5 Ivete Sangalo Multishow Ao Vivo No Maracanã Universal Music

6 Padre Marcelo Rossi Paz Sim, Violência Não (Volume 2) Sony Music

7 Zezé Di Camargo & Luciano Zezé Di Camargo & Luciano (2008) Sony Music

8 Roberto Carlos Roberto Carlos E Caetano Veloso E A Música De Tom Jobim

Sony Music/ Universal Music

9 Ana Carolina Multishow Ao Vivo “Dois Quartos” Sony Music

10 Leonardo Coração Bandido Universal Music

Source: ABPD

Top Retailers1 Lojas Americanas

2 FNAC

3 Saraiva

4 Carrefour/Extra

5 Livraria Cultura



2007 176.9 16.6 11.6

2006 257.1 6.0 10.9

2005 348.3 2.2 –

2004 399.8 – –

74

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4836

IFPI Recording Industry In Numbers 2009 – Chile 75




Alerce

ChileFilms

La Oreja

Mazapan

Producciones Star Sound

Latin America

Chile


2007 24.8 12,980.8 -0.6%

2006 24.9 13,055.7 -3.4%

2005 25.8 13,514.0 -4.5%

2004 27.0 14,153.5 -16.9%



2007 – 100% – –

2006 – 100% – –

2005 – – – –

2004 – – – –

Country Data



Currency : Chilean Peso (CLP)


Performance rights music licensing company : IFPI Chile

Link : www.ifpichile.cl




2007 3.5 0.8 – – –

2006 3.9 0.4 – – –

2005 4.1 0.9 0.4 – –



69%

22%

Digital Sales By Format (Value)n Mobile single trackn Mastertones n Ringback tonesn Ad-supported n Other

31%

25%7%

9%

5%

32%



2007 20.5 2.8 1.5

2006 22.3 1.0 1.6

2005 25.8 – –

2004 27.0 – –

75

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Codiscos

Discos y Cintas FM

Discos Fuentes

Origin

Latin America

Colombia

IFPI Recording Industry In Numbers 2009 – Colombia76


2007 28.1 55,894.4 -16.1%

2006 33.5 66,587.6 6.3%

2005 31.5 62,636.3 5.7%

2004 29.8 59,284.8 -7.6%



2007 – 100% – –

2006 14% 86% – –

2005 – – – –

2004 – – – –

Country Data

Population (millions) : 45


Currency : Colombian Peso (COP)


Performance rights music licensing company : ACINPRO

Link : www.acinpro.org.co




2007 3.7 0.4 – – –

2006 5.4 0.7 – – –

2005 6.7 0.3 0.2 – –



72%

21%

7%

Digital Sales By Format (Value)n Mastertonesn Ringback tones n Mobile single trackn Online streams n Ad-supportedn Other

29%

22%11%

7%

7%

24%


1 Silvestre Dangond El Original Sony Music

2 Fonseca Gratitud EMI Colombia

3 Vicente Fernández Para Siempre Sony Music

4 Juanes La Vida Es Un Ratico Universal

5 Peter Manjarres Solo Clasicos Codiscos

6 Various Pombo Musical EMI Colombia

7 Orquesta Filarmónica De Bogotá Orquesta Filarmónica De Bogotá / 40 Años Vibra Music

8 Various Patito Feo / La Historia Más Linda EMI Colombia

9 Camilo Regalame Tu Corazón FM Discos Y Cintas

10 Various Rockola Boleros / V. 19 Comusica



Top Retailers1 Tower Records

2 Prodiscos

3 La Música

4 Tango Discos

5 Forum Discos y Libros



2007 22.0 4.1 2.0

2006 30.1 1.5 1.8

2005 31.5 – –

2004 29.8 – –

76

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IFPI Recording Industry In Numbers 2009 – Ecuador 77

Latin America

Ecuador


2007 2.0 51,163.8 -16.2%

2006 2.4 61,042.9 -22.6%

2005 3.1 78,828.4 1.1%

2004 3.0 77,968.7 -32.9%


Country Data



Currency : US Dollar (USD)


Performance rights music licensing company : ACINPRO

Link : www.acinpro.org.co


Year CD Music Video Other Physical Single Tracks Digital Albums2008 0.2 – – – –

2007 0.3 – – – –

2006 0.4 – – – –

2005 0.5 – – – –

2004 0.5 – – – –

Recorded Music Sales By Sectorn Physicaln Performance rights

96%

4%





2007 2.0 – –

2006 2.4 – –

2005 3.1 – –

2004 3.0 – –

77

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IFPI Recording Industry In Numbers 2009 – Mexico78


Compañía Fonográfica Internacional

Discos Ciudad

Discos Denver

Discos Musart/Balboa Records

Mexican Records

Multimusic

Producciones Fonográficas Jasper

Music sales in Mexico were hard hit in 2008 falling by 22.0%. While physical sales continued to decline, the digital market remained relatively flat in 2008. The continuing pressure from illegal downloading and physical piracy as well as the effects of the global economic downturn were the main causes for the Mexican market decline.

Illegal downloading is a growing problem in Latin America, fuelled by the rise in broadband access. Some 14 million

people downloaded songs illegally in Mexico during 2008, nearly double the number recorded in 2007 (Ipsos Media).

Meanwhile the legal online market struggles to take off despite Beon and Tarabú, the two main online music stores in Mexico, seeing some positive developments in 2008. The most downloaded songs in 2008 were Vicente Fernández’s Para Siempre and Alejandro Fernández’s Me Dediqué a Perderte. The mobile sector continued to account for

the bulk of digital revenues in Mexico. Music acquisition via pre-loaded mobile phones or purchase of current hit mastertones remained popular.

The most successful examples of pre-loaded albums in 2008 involved Julieta Vengas’ MTV Unplugged and Grupo RBD’s Empezar Desde Cero. Among the most successful mastertones of 2008 were Nigga’s Te Quiero and Juanes’ Me Enamora. Ad-supported revenues continued to grow in 2008.

Latin America

MexicoCountry Data

Population (millions) : 110


Currency : Mexican Peso (MXN)


Chart Compiler : IPSOS

Chart Links : www.amprofon.com.mx

Performance rights music licensing company : SOMEXFON

Link : www.somexfon.com

Luis Miguel Vicente Fernández



78

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IFPI Recording Industry In Numbers 2009 – Mexico 79


2007 187.1 2,090.1 -18.8%

2006 230.4 2,573.6 -10.1%

2005 256.3 2,862.8 10.2%

2004 232.7 2,598.7 9.3%



2007 4% 96% – –

2006 1% 99% – –

2005 8% 92% – –

2004 100% – – –

Note: Music video includes DVD, VHS and VCD. Other physical includes singles, vinyl, cassette and other. Single tracks refer to online single track sales only (Amprofon).



2007 30.5 1.8 0.1 – –

2006 38.6 1.4 0.2 – –

2005 46.3 1.4 0.9 – –



89%

11%

Digital Sales By Format (Value)n Mobile single trackn Mastertones n Ad-supportedn Online streams n Online single trackn Mobile music videos n Other

25%

15%

9%7%6%

33%

5%


1 Vicente Fernández Para Siempre Sony Music

2 Luís Miguel Cómplices Warner Music3 Alejandro Fernández De Noche: Clásicos a mi Manera Sony Music

4 Alejandro Fernández 15 Años de Éxito Sony Music

5 Emmanuel Retro en Vivo Universal Music

6 Madonna Hard Candy Warner Music7 Julieta Venegas MTV Unplugged Sony Music

8 Nigga Te Quiero TEMI

9 Maná Arde el Cielo Warner Music10 Jonas Brothers Jonas Brothers Universal Music

Source: IPSOS

Source: IPSOS

Sales By Age12-17 11%

18-25 24%

26-35 25%

36-45 16%

46-55 17%

+55 7%

Top Retailers1 Mixup

2 Saharis

3 Mr. CD’s

4 Central de Discos

5 Unicornio Musical



2007 171.0 15.5 0.6

2006 222.0 8.3 0.1

2005 255.8 0.5 –

2004 232.6 – –

79

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Latin America

Peru

IFPI Recording Industry In Numbers 2009 – Peru80


2007 2.1 6.3 -9.4%

2006 2.4 7.0 -10.0%

2005 2.6 7.8 -6.9%

2004 2.8 8.4 29.0%


Country Data



Currency : Nuevo Sol (PEN)




2007 0.1 – – – –

2006 0.3 – – – –

2005 0.4 – – – –

2004 0.4 – – – –


81%

19%





2007 1.9 – 0.2

2006 2.2 – 0.2

2005 2.6 – –

2004 2.8 – –

80

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Contrapedal

Koala Records

Nirmalam

Perro Andaluz

Latin America

Uruguay

IFPI Recording Industry In Numbers 2009 – Uruguay 81


2007 3.6 76.9 10.1%

2006 3.3 69.8 35.5%

2005 2.4 51.5 -1.8%

2004 2.5 52.5 75.0%



2007 4% 96% – –

2006 1% 99% – –

2005 8% 92% – –

2004 100% – – –

Country Data



Currency : Uruguayan Peso (UYU)


Note: Music video includes DVD.



2007 0.5 0.1 – – –

2006 0.5 – – – –

2005 0.4 – – – –

2004 0.4 – – – –Note: Other includes ad-supported revenues and other digital amounts.


83%

17%Top Selling Albums 2008

Artist Title Company

1 Various Murgas 2008 Montevideo MG

2 No Te Va Gustar El Camino Mas Largo Bizarro

3 La Trampa El Misero Espiral Del Encanto Bizarro

4 Patito Feo La Vida Es Una Fiesta EMI

5 Sabina & Serrat Dos Pajaros De Un Tiro Sony Music

6 Teen Angels Teenangels 2 Sony Music

7 Ricardo Arjona 5to Piso Sello

8 Agarrate Catalina El Viaje Montevideo MG

9 Tabare Cardozo El Murguero Oriental Montevideo MG


Note: Portable player users refers to imported equipment in 2008.



Top Retailers1 3D

2 AG Discos

3 CD Wherhouse

4 Palacio de la Música

5 Semifusa

6 Todo Música



2007 3.1 – 0.5

2006 2.9 – 0.3

2005 2.4 – –

2004 2.5 – –

81

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Latin America

Venezuela

IFPI Recording Industry In Numbers 2009 – Venezuela82


2007 17.0 36.5 28.3%

2006 13.3 28.5 24.9%

2005 10.6 22.8 12.4%

2004 9.4 20.3 221.1%



2007 – – – –

2006 – – – –

2005 – – – –

2004 – – – –

Country Data



Currency : Bolivar Fuerte (VEF)


Note: Music video refers to DVD. Other physical includes singles, vinyl, cassette and other.



2007 1.4 0.1 – – –

2006 1.7 0.1 – – –

2005 2.0 – – – –



90%

5%

Digital Sales By Format (Value)n Mastertonesn Ringback tones n Ad-supportedn Mobile single track n Other

46%

23%

11%

5% 8%

12%





2007 15.6 0.8 0.7

2006 12.8 – 0.4

2005 10.6 – –

2004 9.4 – –

82

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Bula Music

Cool Spot

Sarepta

Select

Sheer Sound/Music/Iris

Africa

South Africa

IFPI Recording Industry In Numbers 2009 – South Africa 83

Recorded Music Sales (trade value)Year US$ (M) Local Currency (M) Change2008 119.7 990.9 -7.2%

2007 128.9 1,067.5 2.3%

2006 126.0 1,043.1 3.3%

2005 122.0 1,010.2 10.3%

2004 110.6 915.5 20.8%



2007 3% 97% – –

2006 1% 99% – –

2005 2% 97% 1% –

2004 – – – –

Country Data



Currency : Rand (ZAR)


Performance rights music licensing company : RISA

Link : www.risa.org.za




2007 19.5 – 5.0 – –

2006 18.7 2.2 3.4 – –

2005 17.6 1.7 4.0 – –



96%

3%1%

Digital Sales By Format (Value)n Ringback tonesn Mobile single track n Mastertonesn Other

37%

24%

19%

20%





2007 126.2 2.8 –

2006 124.0 2.0 –

2005 121.5 0.5 –

2004 110.6 – –

83

RIN 09 Venezuela - South Africa.indd 3 7/5/09 16:07:50

Appendix Index


84

85 : World Rankings 2008 86 : Recorded Music Volume Trend 87 : Recorded Music Retail Sales 2008 88 : Digital Share By Market 2004 – 2008 89 : Physical Market Repertoire Origin 2008 90 : Certification Award Levels 92 : Local Music Industry Association Contacts 94 : Taxes On Sound Recordings & Exchange Rates

World Rankings 2008

% Of Global Trade Revenues


85Source: IFPI

Country Recorded Music Market Country Digital Market Country Performance Rights1 US 27.0% 1 US 47.1% 1 UK 16.8%

2 Japan 22.3% 2 Japan 21.7% 2 Germany 11.0%

3 UK 10.0% 3 UK 6.7% 3 France 10.7%

4 Germany 8.8% 4 France 4.2% 4 Japan 9.1%

5 France 5.7% 5 Germany 3.3% 5 US 6.8%

6 Canada 2.5% 6 South Korea 2.2% 6 Netherlands 6.1%

7 Australia 2.1% 7 Canada 2.0% 7 Spain 4.5%

8 Italy 1.8% 8 Australia 1.4% 8 Italy 3.6%

9 Spain 1.6% 9 China 1.3% 9 Belgium 3.2%

10 Netherlands 1.5% 10 Brazil 0.8% 10 India 2.7%

11 Brazil 1.2% 11 Spain 0.8% 11 Canada 2.5%

12 Russia 1.2% 12 India 0.8% 12 Denmark 1.8%

13 Switzerland 1.0% 13 Indonesia 0.8% 13 Austria 1.7%

14 Belgium 1.0% 14 Italy 0.8% 14 Brazil 1.6%

15 Austria 0.8% 15 Thailand 0.7% 15 Australia 1.6%

16 Mexico 0.8% 16 Belgium 0.5% 16 Sweden 1.6%

17 Sweden 0.8% 17 Denmark 0.5% 17 Finland 1.3%

18 South Korea 0.8% 18 Mexico 0.4% 18 Norway 1.3%

19 India 0.8% 19 Netherlands 0.4% 19 Israel 0.8%

20 Denmark 0.7% 20 Switzerland 0.4% 20 Hungary 0.8%

21 Norway 0.7% 21 Sweden 0.3% 21 Turkey 0.8%

22 South Africa 0.6% 22 Norway 0.3% 22 Switzerland 0.8%

23 Poland 0.6% 23 Austria 0.3% 23 Hong Kong 0.8%

24 Finland 0.5% 24 Taiwan 0.2% 24 Argentina 0.7%

25 China 0.4% 25 Russia 0.2% 25 Czech Republic 0.7%

26 Turkey 0.4% 26 Hong Kong 0.2% 26 Greece 0.7%

27 Portugal 0.4% 27 Colombia 0.2% 27 Poland 0.6%

28 Thailand 0.4% 28 Malaysia 0.2% 28 Malaysia 0.5%

29 Argentina 0.3% 29 Greece 0.1% 29 Russia 0.5%

30 New Zealand 0.3% 30 New Zealand 0.1% 30 Romania 0.5%

31 Taiwan 0.3% 31 Finland 0.1% 31 Slovakia 0.4%

32 Greece 0.3% 32 Poland 0.1% 32 Portugal 0.3%

33 Hong Kong 0.3% 33 Portugal 0.1% 33 New Zealand 0.3%

34 Indonesia 0.3% 34 Chile 0.1% 34 Colombia 0.3%

35 Czech Republic 0.2% 35 South Africa 0.1% 35 Chile 0.2%

36 Hungary 0.2% 36 Central America 0.1% 36 South Africa 0.2%

37 Colombia 0.2% 37 Argentina 0.1% 37 Singapore 0.2%

38 Malaysia 0.1% 38 Philippines 0.1% 38 Taiwan 0.2%

39 Singapore 0.1% 39 Romania 0.1% 39 Venezuela 0.1%

40 Venezuela 0.1% 40 Czech Republic 0.1% 40 Uruguay 0.1%

41 Chile 0.1% 41 Singapore <0.1% 41 Mexico 0.1%

42 Philippines 0.1% 42 Hungary <0.1% 42 Peru <0.1%

43 Croatia 0.1% 43 Venezuela <0.1% 43 Lithuania <0.1%

44 Central America 0.1% 44 Turkey <0.1% 44 Ukraine <0.1%

45 Slovakia 0.1% 45 Barbados <0.1% 45 Thailand <0.1%

46 Israel <0.1% 46 Bulgaria <0.1% 46 Paraguay <0.1%

47 Bulgaria <0.1% 47 Croatia <0.1% 47 Central America <0.1%

48 Romania <0.1% 48 Lithuania <0.1% 48 Barbados <0.1%

49 Uruguay <0.1% 49 Slovakia <0.1% 49 Ecuador <0.1%

50 Peru <0.1% 50 Ukraine <0.1% 50 Bulgaria <0.1%

51 Ecuador <0.1% 51 Ecuador <0.1% 51 Croatia <0.1%

52 Lithuania <0.1% 52 Paraguay <0.1% 52 China <0.1%

53 Ukraine <0.1% 53 Peru <0.1% 53 Indonesia <0.1%54 Paraguay <0.1% 54 Uruguay <0.1% 54 Philippines <0.1%55 Barbados <0.1% 55 Israel <0.1% 55 South Korea <0.1%

Recorded Music Volume Trend

Figures In Millions


Full-Length FormatsLPs MCs CDs Music Video Other Digital Albums Total Units

2008 9 53 1,329 90 5 113 1,599

2007 6 82 1,545 110 4 64 1,810

2006 3 114 1,760 120 3 39 2,038

2005 4 186 1,938 149 10 18 2,304

2004 7 368 2,065 151 13 6 2,609

2003 6 492 2,043 154 5 – 2,700

2002 8 534 2,190 110 1 – 2,843

2001 10 659 2,310 80 1 – 3,060

2000 12 736 2,454 12 1 – 3,215

1999 14 847 2,411 16 1 – 3,289

1998 23 897 2,374 – – – 3,294

1997 17 1,034 2,232 – – – 3,283

1996 21 1,188 2,162 – – – 3,372

1995 33 1,200 1,983 – – – 3,216

1994 49 1,354 1,784 – – – 3,188

1993 109 1,382 1,419 – – – 2,909

1992 175 1,476 1,185 – – – 2,836

1991 292 1,493 998 – – – 2,782

1990 339 1,447 777 – – – 2,564

1989 450 1,540 600 – – – 2,590

1988 510 1,390 400 – – – 2,300

1987 590 1,150 260 – – – 2,000

1986 690 970 140 – – – 1,800

1985 730 950 61 – – – 1,741

1984 800 800 20 – – – 1,620

1983 850 660 6 – – – 1,516

1982 900 570 – – – – 1,470

1981 1,140 510 – – – – 1,650

1980 878 474 – – – – 1,352

1979 896 470 – – – – 1,365

1978 942 428 – – – – 1,370

1977 898 374 – – – – 1,272

1976 743 289 – – – – 1,032

1975 674 236 – – – – 910

1974 655 209 – – – – 864

1973 617 185 – – – – 802

Singles

2008 1,494

2007 1,202

2006 931

2005 582

2004 354

2003 233

2002 265

2001 318

2000 370

1999 440

1998 459

1997 516

1996 466

1995 432

1994 390

1993 410

1992 352

1991 334

1990 344

1989 357

1988 370

1987 390

1986 490

1985 650

1984 750

1983 800

1982 680

1981 550

1980 526

1979 624

1978 600

1977 545

1976 516

1975 483

1974 515

1973 530

Source: IFPI Notes: Other includes SACD and DVD-A and other. Digital album volumes are estimates based on information from Media Control GfK, OCC and Nielsen SoundScan for selected markets. Singles include physical singles and online single tracks. Mobile singles not included. Online single tracks included from 2004. Figures are estimates based on information from Media Control GfK, OCC and Nielsen SoundScan for selected markets.

86


Recorded Music Retail Sales 2008

US$ Millions

Physical Digital TotalCanada 475.9 125.0 600.9

USA 5,758.5 2,839.3 8,597.8

Austria 255.3 17.6 272.9

Belgium 236.2 32.7 268.9

Bulgaria 8.5 - 8.5

Croatia 20.3 - 20.3

Czech Republic 55.9 3.5 59.4

Denmark 146.8 32.5 179.3

Finland 130.0 6.8 136.8

France 1,271.9 287.7 1,559.6

Germany 2,172.0 183.4 2,355.4

Greece 129.4 10.5 139.9

Hungary 39.2 2.0 41.2

Italy 416.3 46.5 462.8

Netherlands 351.4 22.1 373.5

Norway 195.9 16.8 212.7

Poland 159.5 7.8 167.3

Portugal 86.7 8.1 94.8

Russia 395.2 15.0 410.2

Slovakia 8.5 - 8.5

Spain 356.1 53.8 409.9

Sweden 197.8 17.9 215.7

Switzerland 223.6 20.0 243.6

Turkey 103.2 1.1 104.3

UK 2,045.8 384.5 2,430.3

China 47.3 135.7 183.0

Hong Kong 50.9 17.9 68.8

India 125.3 79.0 204.3

Indonesia 32.4 79.6 112.0

Japan 4,560.5 1,040.2 5,600.7

Malaysia 19.5 17.0 36.5

Philippines 17.0 5.5 22.5

Singapore 25.3 3.6 28.9

South Korea 81.4 213.4 294.8

Taiwan 54.6 20.4 75.0

Thailand 61.2 65.3 126.5

Australia 496.9 81.5 578.4

New Zealand 81.2 8.8 90.0

Argentina 115.1 5.2 120.3

Brazil 268.7 59.6 328.3

Central America 14.5 6.3 20.8

Chile 20.4 8.4 28.8

Colombia 45.2 12.6 57.8

Ecuador 2.5 - 2.5

Mexico 202.2 29.3 231.5

Peru 2.4 - 2.4

Uruguay 7.6 - 7.6

Venezuela 27.8 2.1 29.9

South Africa 170.7 6.7 177.4

Global 21,770.5 6,054.0 27,824.6

Source: IFPI estimates. Notes: For formats included please refer to the notes section. USA physical retail revenues are suggested list prices.

87


Digital Share By Market 2004 – 2008

2004 2005 2006 2007 2008Canada 0.3% 2.7% 5.8% 10.7% 16.9%

US 2.9% 9.1% 16.8% 25.0% 35.8%

Austria 0.9% 3.1% 5.5% 5.9% 6.9%

Belgium 0.5% 1.9% 6.0% 6.6% 10.3%

Czech Republic - - 3.7% 5.4% 5.0%

Denmark - 1.4% 6.0% 9.7% 15.6%

Finland - - 2.4% 3.8% 4.6%

France 1.3% 2.2% 6.3% 8.7% 15.3%

Germany 1.0% 2.7% 4.9% 6.6% 7.6%

Greece - - 6.1% 7.5% 9.7%

Hungary - - 1.6% 2.8% 3.7%

Italy 0.8% 3.7% 6.2% 7.2% 8.9%

Netherlands 0.4% 2.0% 3.6% 4.1% 5.6%

Norway - 1.3% 3.7% 5.8% 8.7%

Poland - - 0.5% 2.7% 3.9%

Portugal - - 4.2% 4.9% 6.3%

Romania - - - 12.1% 38.1%

Russia - - 0.4% 1.5% 3.4%

Spain 0.5% 1.1% 5.2% 8.2% 9.6%

Sweden 0.1% 2.1% 5.8% 6.6% 7.6%

Switzerland - 1.5% 3.3% 5.8% 6.9%

Turkey - - 0.1% 0.5% 3.0%

UK 0.8% 3.2% 6.0% 8.4% 13.7%

China - - 36.2% 45.7% 61.5%

Hong Kong - - 7.5% 10.4% 12.9%

India - - 8.7% 16.5% 20.6%

Indonesia - - 31.3% 41.1% 54.3%

Japan 3.2% 7.5% 11.0% 16.1% 20.0%

Malaysia - - 17.5% 17.6% 24.6%

Philippines - - 3.9% 6.5% 14.7%

Singapore - - 3.7% 3.6% 6.0%

South Korea - - 55.9% 60.8% 59.9%

Taiwan - - 6.6% 11.5% 13.8%

Thailand - - 20.2% 23.5% 36.6%

Argentina - - 2.0% 3.4% 4.2%

Brazil - 0.6% 2.3% 8.1% 13.4%

Central America - - 1.1% 8.0% 25.5%

Chile - - 4.4% 11.2% 22.1%

Colombia - - 4.8% 14.5% 21.4%

Ecuador - - 0.1% 0.0% 0.0%

Mexico - 0.2% 3.6% 8.3% 10.8%

Venezuela - - 0.1% 4.5% 5.1%

Australia 0.2% 1.8% 5.3% 8.0% 13.1%

New Zealand - - 4.4% 6.7% 8.8%

South Africa - 0.4% 1.6% 2.1% 2.8%

Global 1.9% 5.5% 10.7% 15.2% 20.5%Europe - 2.4% 5.2% 7.1% 10.3%

Asia - 6.3% 13.3% 17.9% 22.3%

Latin America - 0.4% 2.9% 7.8% 12.1%

Asia excl. Japan - - 25.4% 29.0% 36.6%

North America - 8.6% 16.0% 24.0% 34.2%

Top 20 2.0% 2.0% 5.7% 10.9% 15.6%

Others 0.4% 0.4% 1.9% 8.3% 10.1%

Source: IFPIBasis: Trade values

88


Physical Market Repertoire Origin 2008

By Value

Domestic International Classical CompilationsArgentina 37% 58% 5% 0%

Australia 22% 54% 6% 18%

Austria 6% 56% 11% 27%

Belgium 10% 62% 5% 22%

Brazil 65% 32% 3% –

Canada 20% 67% 2% 11%

Central America 4% 88% 4% 4%

Chile 12% 84% 2% 2%

China 19% 61% 15% 4%

Colombia 32% 49% 1% 18%

Croatia 54% 34% 3% 9%

Czech Republic 63% 28% 4% 5%

Denmark 46% 43% 5% 6%

Ecuador 1% 89% 3% 7%

Finland 48% 37% 6% 10%

France 57% 34% 9% –

Germany 52% 31% 6% 11%

Greece 69% 28% 2% –

Hong Kong 31% 47% 11% 11%

Hungary 40% 49% 11% –

India 74% 5% 0% 20%

Indonesia 67% 33% – –

Italy 52% 36% 4% 8%

Japan 80% 20% – –

Malaysia 11% 74% 2% 13%

Mexico 42% 47% 2% 9%

Netherlands 28% 56% 4% 12%

New Zealand 10% 90% – –

Norway 35% 45% 4% 16%

Peru 11% 78% 5% 5%

Philippines 34% 42% 1% 23%

Poland 24% 41% 9% 27%

Portugal 36% 36% 3% 25%

Russia 72% 25% 3% –

Singapore 1% 72% 6% 21%

Slovakia 53% 36% 2% 10%

South Africa 43% 57% – –

South Korea 49% 25% 18% 9%

Spain 40% 41% 5% 14%

Sweden 32% 43% 2% 23%

Switzerland 10% 69% 5% 17%

Taiwan 38% 42% 12% 8%

Thailand 72% 28% – –

Turkey 73% 27% – –

UK 36% 38% 4% 22%

Uruguay 35% 63% 2% –

USA 93% 5% 2% –

Source: IFPI Notes: Digital sales not included. International repertoire can include regional repertoire. Italy: Jazz included in classical. Canada, Chile, Belgium, Hungary, Indonesia, Malaysia, Netherlands, Philippines, South Korea, Switzerland, UK : based on artist nationality. France: Based on language. Japan: Classical share included in domestic/international. UK: Figures based on units. Canada figures based on top 200 albums chart.

89

CertificationAward Levels

Albums(unit sales required)


Domestic Repertoire International RepertoireSilver Gold Platinum Diamond Silver Gold Platinum Diamond

North AmericaCanada – 40,000 80,000 100,000 – s s sUSA – 500,000 1,000,000 10,000,000 – s s sEuropeAustria – 10,000 20,000 – – s s –Belgium – 10,000 20,000 – – 15,000 30,000 –Bulgaria – 15,000 30,000 – – 10,000 20,000 –Croatia 3,000 7,500 15,000 30,000 s s s sCzech Republic – 6,000 12,000 – – 3,000 6,000 –Denmark – 15,000 30,000 – – s s –Finland – 15,000 30,000 – – 10,000 20,000 –France 35,000 75,000 200,000 750,000 s s s sGermany – 100,000 200,000 – – s s –Greece – 15,000 30,000 – – 5,000 10,000 –Hungary – 7,500 15,000 – – 3,000 6,000 –Iceland – 5,000 10,000 – – s s –Ireland – 7,500 15,000 – s s s –Italy – 35,000 70,000 350,000 s s s sLatvia – 8,000 15,000 – – 4,000 8,000 –Netherlands – 30,000 60,000 – – s s –Norway – 15,000 30,000 – – s s –Poland – 15,000 30,000 150,000 – 10,000 20,000 100,000 Portugal – 10,000 20,000 – – s s –Russia – 50,000 100,000 300,000 – 10,000 20,000 60,000Slovakia – 3,000 6,000 – – 1,000 2,000 –Slovenia – 5,000 10,000 – – s s –Spain – 40,000 80,000 – – s s –Sweden – 20,000 40,000 – – s s –Switzerland – 15,000 30,000 – – s s –Turkey – 100,000 200,000 300,000 – – – –UK 60,000 100,000 300,000 – s s s –Ukraine – 50,000 100,000 500,000 – 25,000 50,000 100,000 AsiaChina – 40,000 80,000 – – 15,000 30,000 –Hong Kong – 15,000 30,000 – – 7,500 15,000 –India – 100,000 200,000 – – 7,500 15,000 –Indonesia – 35,000 75,000 – – 10,000 15,000 –Japan – 100,000 250,000 1,000,000 – s s –Malaysia – 10,000 20,000 – – 10,000 20,000 –Philippines – 15,000 30,000 – – 10,000 20,000 –Singapore – 6,000 12,000 – – 6,000 12,000 –South Korea – – – – – 5,000 10,000 –Taiwan – 20,000 40,000 – – 7,000 14,000 –Thailand – 50,000 100,000 – – 6,000 12,000 –AustralasiaAustralia – 35,000 70,000 – – s s –New Zealand – 7,500 15,000 – – s s –Latin AmericaArgentina – 20,000 40,000 250,000 – s s –Brazil – 50,000 100,000 500,000 – 30,000 60,000 250,000 Chile – 7,500 15,000 – – s s sColombia – 10,000 20,000 – – 5,000 10,000 –Ecuador – 3,000 6,000 – – s s –Mexico – 40,000 80,000 400,000 – s s sParaguay – 5,000 10,000 – – s s sPeru – 3,000 6,000 – – s s –Uruguay – 2,000 4,000 – – s s –Venezuela – 5,000 10,000 – – s s –AfricaSouth Africa – 20,000 40,000 – – s s –Middle EastGulf States – 10,000 20,000 – – s s –Egypt – 25,000 50,000 – – 5,000 10,000 –Lebanon – 20,000 40,000 – – 5,000 10,000 –

Notes‘s’ indicates same levels for both domestic and international repertoire.Finland ,Germany, Norway, Sweden, UK & USA: Digital album sales can be included for certification.

USA: Levels for Latin repertoire = 50,000 for Gold & 100,000 for Platinum.

Middle East: Domestic repertoire = Arab repertoire

China: For regional repertoire levels are 75,000 for Gold & 150,000 for Platinum.

Belgium: Domestic repertoire is divided into non-Dutch/French repertoire and French/Dutch repertoire and award levels vary. Different levels for classical and jazz repertoire. Please contact BEA for further information.

Netherlands: For jazz and classical repertoire the respective levels are 10,000/20,000 for Gold/Platinum.

Hungary: Classical/Jazz/World Music/Proze levels are 1500/3000 (regardless of origin).

90

Singles(unit sales required)

Music Videos(unit sales required)

Digital Download Singles(unit sales required)

Master Ringtones(unit sales required)


Silver Gold Platinum DiamondNorth AmericaCanada – 5,000 10,000 100,000 USA – 500,000 1,000,000 –EuropeAustria – 15,000 30,000 –Belgium – 10,000 20,000 –Czech Republic – 1,000 2,000 –Finland – 5,000 10,000 –France 100,000 200,000 300,000 500,000 Germany – 150,000 300,000 –Greece – 5,000 10,000 –Hungary – 1,500 3,000 –Ireland – 7,500 15,000 –Italy – 10,000 20,000 –Lithuania – 3,000 6,000 –Netherlands – 25,000 50,000 –Norway – 5,000 10,000 –Portugal – 10,000 20,000 –Spain – 20,000 40,000 –Sweden – 10,000 20,000 –Switzerland – 15,000 30,000 –UK 200,000 400,000 600,000 –AsiaJapan – 100,000 250,000 1,000,000 Singapore – 5,000 10,000 –Taiwan – 7,000 14,000 –Thailand – 50,000 100,000 –AustralasiaAustralia 35,000 70,000New Zealand – 5,000 10,000 –AfricaSouth Africa – 10,000 25,000 –

Gold Platinum DiamondNorth AmericaCanada 5,000 10,000 100,000 USA 50,000 100,000 –EuropeAustria 5,000 10,000 –Belgium 25,000 50,000 –Czech Republic 1,500 3,000 –Denmark 7,500 15,000 –Finland 5,000 10,000 –France 10,000 20,000 100,000 Germany 25,000 50,000 –Greece 5,000 10,000 –Hungary 2,000 4,000 –Iceland 5,000 10,000 –Ireland 2,000 4,000 –Italy 10,000 20,000 –Latvia 5,000 8,000 –Netherlands 40,000 80,000 –Norway 5,000 10,000 –Poland 5,000 10,000 –Portugal 4,000 8,000 –Russia 25,000 50,000 –Slovakia 500 1,000 –Spain 10,000 25,000 –Sweden 10,000 20,000 –UK 25,000 50,000 –AsiaJapan 100,000 250,000 1,000,000 AustralasiaAustralia 7,500 15,000 –New Zealand 2,500 5,000 –Latin AmericaArgentina 4,000 8,000 –Brazil 25,000 50,000 100,000 Colombia 5,000 10,000 –Mexico 10,000 20,000 –Uruguay 1,000 2,000 –

Gold Platinum DiamondArgentina 10,000 20,000 –Brazil 50,000 100,000 500,000Canada 20,000 40,000 400,000 Denmark 15,000 30,000 –Egypt 20,000 40,000 –Japan 100,000 250,000 1,000,000*Mexico 40,000 80,000 400,000Spain 20,000 40,000 –USA 500,000 1,000,000 –

Gold Platinum DiamondArgentina 10,000 20,000 –Brazil 50,000 100,000 500,000Canada 20,000 40,000 400,000 Egypt 20,000 40,000 –Japan* – – 1,000,000Mexico 40,000 80,000 400,000USA 500,000 1,000,000 –

NotesBrazil: Figures shown are for domestic repertoire. For international repertoire gold, platinum & diamond are 15,000, 30,000 and 125,000 respectively.

Notes Brazil: Figures refer to domestic repertoire. For international repertoire the levels are 30,000/60,000/250,000 respectively. * ‘Million’ award.

NotesBrazil: Figures refer to domestic repertoire. For international repertoire the levels are 30,000/60,000/250,000 respectively. * Awards start at 500,000 - called ‘double platinum’.

NotesBelgium: Figures in table indicate domestic repertoire singles; levels for international repertoire are Gold 15,000 and Platinum 30,000. Thailand: Figures in table indicate domestic repertoire singles; levels for international repertoire are Gold 20,000 and Platinum 40,000. Denmark, Finland, Germany, Italy, Norway, Sweden & UK: Digital single sales can be included for certification.

91

Local Music IndustryAssociation Contacts

North America

CanadaCanadian Recording Industry Association (CRIA) 85 Mowat Avenue Toronto ON M6K 3E3Tel: +1 (416) 967 7272 Fax: +1 (416) 967 [email protected] www.cria.ca

USARecording Industry Association of America (RIAA) 1025 F. Street, NW 10th Floor Washington, D.C. 20004Tel: +1 202 775 0101 Fax: +1 202 775 7253www.riaa.com

Europe

AustriaIFPI Austria - Verband der Osterreichischen Musikwirtschaft Schreyvogelgasse 2/5 A-1010 ViennaTel: +43 (1) 535 6035 Fax: +43 (1) 535 [email protected] www.ifpi.at

BelgiumBelgian Entertainment Association (BEA)Place de l’Alma 3 Bte 21200 BrusselsBelgiumTel: +32 2 779 4174Fax: +32 (2) 779 [email protected]

BulgariaBulgarian Association of Music Producers (BAMP)8, Mitropolit Kiril Vidinski Str.fl. 3, apt 31164 SofiaTel: +359 2 963 2757Fax: +359 2 866 [email protected]

CroatiaCroatian Phonographic Association (HDU)Brozova 8 A1000 ZagrebTel: +385 1 3668 194 Fax: +385 1 3668 [email protected] www.hdu.hr

Czech Republic IFPI Czech RepublicNa Kozacce 7CZ-120 00Prague 2Tel: +420 2 2150 7624Fax: +420 (221) 507 [email protected]

DenmarkIFPI Denmark c/o:Johan Schlüter AdvokatfirmaHøjbro Plads 10DK-1200 Kobenhavn KTel: +45 32 71 20 80Fax: +45 32 71 21 [email protected] / www.ifpi.dk

EstoniaEesti Fonogrammitootjate Ühing (EFU)Endla 3- 6101 10122 Tallinn Tel: +372 6307 210 Fax: +372 6307 296 [email protected]

FinlandIFPI FinlandYrjonkatu 3B00120 HelsinkiTel: +358 (9) 6803 4050Fax: +358 (9) 6803 [email protected]

FranceSyndicat National de l’Edition Phonographique (SNEP)131 boulevard de Sébastopol 75002 ParisTel: +33 (1) 4413 6666Fax: +33 (1) 5376 [email protected]

GermanyBundesverband Musikindustrie e.V.Oranienburger Strasse 67/68D-10117 BerlinTel: +49 30 590 0380Fax: +49 30 590 [email protected]

Greece IFPI Greece 65 Aristotelous StreetHalandri 15232Tel: +30 2 10 685 1739Fax: +30 2 10 68 01 [email protected]

Hungary Magyar Hanglemezkiadók Szövetsége (MAHASZ)Harcos tér 5Budapest, 1113Tel: +36 (1) 391 4200Fax: +36 (1) 200 [email protected]

Ireland Irish Recorded Music Association (IRMA)Irma House, 1 Corrig AvenueDun Laoghaire, Co.DublinTel: +353 0 (1) 280 6571Fax: +353 0 (1) 280 [email protected]

Italy Federazione Industria Musicale Italiana (FIMI)Galleria del Corso 420122 MilanoTel: +390 (2) 795 879Fax: +390 (2) 799 [email protected]

LatviaThe Latvian Association Of Performers And ProducersRiga Mukusales 42LV-1004Tel: 00 371 67605023Fax: 00 371 [email protected]

Netherlands Nederlandse Vereniging van Producenten en Importeurs van beeld-en geluidsdragers (NVPI)Albertus Perkstraat 361217 NT HilversumTel: +31 (35) 625 4411Fax: +31 (35) 625 [email protected]

Norway IFPI NorwaySandakervn. 520477 Oslo Tel: +47 (22) 221 788Fax: +47 (22)22 17 [email protected]

Poland Zwiazek Producentow Audio Video (ZPAV)12/2 Kruczkowskiego Street00-380 WarsawTel: +48 (22) 625 69 66Fax: +48 (22) 625 16 [email protected]

Portugal Associação Fonográfica Portuguesa (AFP)Av. Sidónio Pais, 20 - R/C DT°1050-215 LisbonTel: +351 (213) 156 655Fax: +351 (213) 156 [email protected]

Romania Uniunea Producatorilor de Fonograme din România (UPFR)Blvd Nicolae Titulescu, nr. 88bSector 1, BucharestTel: +40 21 222 20 45 Fax: +40 21. 222.20.43www.upfr.ro

Slovak Republic IFPI Slovak RepublicJakubovo nám. 14813 48 BratislavaTel: +421 (0) 2 5292 3886Fax: +421 (0) 2 5292 [email protected]

Spain Productores de Musica de España (Promusicae)Edificio Iberia Mart IICalle Orense, 34- 8ª28020 MadridTel: +34 (91) 417 04 70Fax: +34 (91) 556 92 [email protected]

Sweden IFPI Svenska Gruppen (IFPI Sweden)Tegnérgatan 34 Box 1429111 84 StockholmTel: +46 (8) 735 9750Fax: +46 (8) 273 [email protected]

Switzerland Schweizer Landesgruppe der IFPI (IFPI Switzerland)Toblerstrasse 76ACH 8044 ZurichTel: +41 (0) 252 5866Fax: +41 (0) 252 [email protected]

Turkey Baglantılı Hak Sahibi Fonogram (Mü-YAP) Kuloglu Mah, Turnacibasi Fok No: 16, Kat; 5 80070 Beyoglu IstanbulTel: +90 (212) 292 46 13 /14/15/16Fax: +90 (212) 292 46 [email protected]


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United Kingdom British Phonographic Industry (BPI)Riverside Building, County HallWestminster Bridge RoadLondon SE1 7JATel: 020 7803 1300Fax: 020 7803 [email protected]

Asia

China Please contact Asia office

Hong Kong IFPI Hong Kong Group Ltd 16/F Guardian House32 Oi Kwan Road, WanchaiTel: (+852) 2865 5863Fax: (+852) 2866 [email protected]

India The Indian Music Industry (IMI)Crescent Towers, 7th Floor, B-68, Veera Estate, Off New Link Road, Andheri (W), Mumbai - 400 053Tel: 91 22 26736301/02/03Fax: 91 22 [email protected]

Indonesia Please contact Asia office

Japan Recording Industry Association of Japan (RIAJ)11F, Kita-Aoyama Yoshikawa Bldg2-12-16 Kita-Aoyama Minato-kuTokyo 107-0061Tel: +81 (3) 6406 0510Fax: +81 (3) 6406 [email protected]

Malaysia Recording Industry Association of Malaysia (RIM) No. L-8-2, 8th Floor, Block LNo.2, Jalan Solaris Solaris Mont’Kiara 50480 Kuala LumpurTel: +603 6207 2800Fax: +603 6207 [email protected]

PhilippinesPhilippine Association of the Record Industry (PARI)Suite 207 Greenhills Mansion37 Annapolis St., GreenhillsSan Juan, Metro ManilaTel: +63(2) 725 0770Fax: +63(2) 725 [email protected]

Singapore Recording Industry Association Singapore (RIAS)4 Leng Kee Road#03-07 SiS BuildingSingapore 159088Tel: +65 (6220) 4166Fax: +65 (6220) [email protected]

South Korea Please contact Asia office

Taiwan Recording Industry Foundation in Taiwan 4F, No.85, Sec. 4, Bade RoadSungshan Chiu 105 TaipeiTel: +886 (2) 2718 8818Fax: +886 (2) 2528 [email protected]

Thailand Thai Entertainment Content Trade Association (TECA)23/17-18 Soi Soonvijai, Rama 9 RoadBangkapi Sub-DistrictHuay-Kwang District10320 BangkokTel: +662 203 1002/3Fax: +662 203 [email protected]

Australasia

AustraliaAustralian Recording Industry Association (ARIA)Level 4, 19 Harris Street, Pyrmont2009 NSWTel: +61 2 8569 1144Fax: +61 2 8569 [email protected]

New ZealandRecording Industry Association of New Zealand (RIANZ)Private Bag 78 850Grey Lynn, Auckland Tel: +64 9 360 5085Fax: +64 9 360 [email protected]

Latin America

ArgentinaCámara Argentina de Productores de Fonogramas y Videogramas (CAPIF)Lavalle 534, Piso 4C1047AAL Buenos AiresTel: +54 11 4326 6464Fax: +54 11 4326 [email protected]

BrazilAssociação Brasileira de Produtores de Disco (ABPD)Av. das Américas, 500 Bloco 11 Sala 204Barra da Tijuca - Rio de Janeiro RJ22640-100Tel: +55 21 3511 9908Fax: +55 - 21 3511 [email protected]

Central America Please contact Latin America office

ChileIFPI Chile Av Antonio Varas No 2043Providencia, SantiagoTel: +56 2 379 3890Fax: +56 2 434 [email protected]

ColombiaAPDIF Colombia Carrera 14, No. 94 A - 10 - Oficina 402 Edificio Chico 94 ABogotá D.C.Tel: +57 (1) 622 7363Fax: +57 (1) 612 0310 [email protected]

EcuadorPlease contact Latin America office

MexicoAsociacion Mexicana de Productores de Fonogramas y Videogramas A.C.(Amprofon)Lafontaine 42Col. Polanco ChapultepecC.P.11560 Mexico D.F.Tel: +52 5 55281 6035/38Fax: +52 5 55280 [email protected] www.amprofon.com.mx

Paraguay Please contact Latin America office

Peru Please contact Latin America office

Uruguay Please contact Latin America office

VenezuelaAsociacion de Productores Fonograficos de VenezuelaAv. Principal de los Cortijos de Lourdes, Piso 3Edificio Los Hermanos, CaracasTel: +58 212 238 0044

Africa & Middle East

IsraelIFPI Israel 10 Habonim StreetRamat Gan 52462Tel: +972 (3) 613 0715 /613 0716Fax: +972 (3) 575 6747www.ifpi.co.il

South AfricaThe Recording Industry of South Africa (RISA) P O Box 367Randburg 2194Tel: +27 11 886 1342Fax: +27 11 886 [email protected] www.risa.org.za

Regional Offices

Head OfficeIFPI London10 PiccadillyLondon W1J 0DD UKTel: +44 (0)20 7878 7900Fax: +44 (0)20 7878 [email protected]

European Office IFPI EuropeSquare de Meeûs 401000 Brussels, BelgiumTel: +32 (0)2 511 9208Fax: +32 (0)2 502 [email protected]

Latin America Office IFPI Latin America10451 NW 117th AvenueSuite 105, MiamiFlorida 33178USATel: +1 305 567 0861Fax: +1 305 567 0871

Asia Office IFPI Asia16/F Guardian House32 Oi Kwan Road, WanchaiHong KongTel: +852 2 866 6862Fax: +852 2865 [email protected]


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Taxes On Sound Recordings & Exchange Rates 2008


US$ Exchange Rates

Country Rate

Argentina 3.17

Australia 1.20

Austria 0.68

Belgium 0.68

Brazil 1.84

Canada 1.07

Chile 523.92

China 6.96

Colombia 1,990.6

Czech Republic 17.10

Denmark 5.10

Finland 0.68

France 0.68

Germany 0.68

Greece 0.68

Hong Kong 7.79

Hungary 172.70

India 43.82

Indonesia 9,684.9

Ireland 0.68

Italy 0.68

Japan 103.47

Malaysia 3.34

Mexico 11.17

Netherlands 0.68

New Zealand 1.43

Norway 5.65

Philippines 44.57

Poland 2.41

Portugal 0.68

Romania 2.53

Russia 24.87

Singapore 1.42

South Africa 8.28

South Korea 1,102.8

Spain 0.68

Sweden 6.59

Switzerland 1.08

Taiwan 31.56

Thailand 33.27

Turkey 1.31

UK 0.55

USA 1.00

Venezuela 2.15

Source: Oanda

country SALES tAX IMPort tAX

nortH AMErIcACanada 6% Up to 12%Jamaica 15% 45%USA 2% – 9% –

EuroPEAustria 20% 20%Belgium 21% –Bulgaria 20% 3.5%Croatia 22% –Cyprus 15% –Czech Republic 22% –Denmark 25% –Estonia 18% 3.5%Finland 22% 22%France 19.6% –Germany 16% –Greece 19% VariableHungary 20% –Iceland 7% 10%Ireland 21% VariableItaly 20% 20%Latvia 18% –Lithuania 18% –Netherlands 19% –Norway 25% –Poland 22% 22%Portugal 21% –Romania 19% 9%Russia 18% 5%Slovakia 19% –Slovenia 20% 2%Spain 16% 16%Sweden 25% 4%Switzerland 7.6% –Turkey 18% –UK 15% –Ukraine 20% Variable

ASIAChina 17% 17%Hong Kong – –India 4% – 12.5% 17.3%Indonesia 10% 20%Japan 5% –Malaysia 10% 30%Pakistan 16% –Philippines 12% 10%Singapore 7% –South Korea 10% 8%Taiwan 5% –Thailand 7% 30%

country SALES tAX IMPort tAX

LAtIn AMErIcAArgentina 21% 16%Brazil 15% – 18% 16%Chile 18% 10%Colombia 16% 15%Ecuador 10% 15.6%Mexico 15% –Paraguay 10% 9%Peru 18% 12%Uruguay 23% 15%Venezuela 14.5% –

AuStrALASIAAustralia 10% –New Zealand 12.5% –

MIddLE EAStBahrain – 10%Egypt 10% 70%Israel 17% 2.5% – 5%Kuwait – 4%Lebanon 10% 5%Qatar – 4%Saudi Arabia – 5%UAE – 4%

AFrIcASouth Africa 14% –Zimbabwe 15% –

NotesCanada: Federal tax reduced to 6% Jul 06; provincial tax variesUSA: Sales tax varies by stateAustria: Import tax for non-EU territoriesBulgaria: Import tax for non-EU territoriesFinland: Import tax for non-EU territoriesGreece: Import tax for non-EU territoriesIceland: Sales tax reduced from 24.5% in Nov 06Ireland: Import tax for non-EU territoriesItaly: Import tax for non-EU territoriesSlovenia: Import tax for non-EU territoriesSpain: Import tax for non-EU territoriesSwitzerland: Import tax for non-EU territories is CHF 27.- per 100 kgIndia: Import tax for CDsChile: Import tax not applicable to Mexico, 5% to Mercosur territoriesUruguay: Import tax applicable to non-Mercosur territoriesEgypt: 55% customs duty not included in import taxIsrael: 2.5% for MCs and 5% for CDs applicable to non-EU territories and USALebanon: No import tax on CDs and DVDs

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96 IFPI Recording Industry In Numbers 2009

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Recording Industry In Numbers 2009

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