Business of Music in India

…exploring the future…

Are you losing out on your fan-base?

By not bothering about online music sales, are you losing out….?

As you will read in the previous discussions on this blog, there have been quite a lot of ideas, points and views exchanged on musicians using pirated softwares; and music lovers downloading mp3 songs from pirate sites.

Just see how the global markets are warming up to online music sales:

But has it occurred to anyone than an artiste / band is also responsible if his / their song is being pirated??!

How, you may ask?

I was speaking to a USA-based fan of a well-known Indian composer/singer. He said that he has been looking online for a bhajan (song) of this person for a while now. The album in question is still not available on any popular online store. Being habituated with buying from online music shops, he ended up getting the song from a pirate site.

And this fan blames (partly) the artiste for it!!!

His rationale…:

1. a music label should make all their albums available on stores on the Net for sale. So what if results don’t show up instantly, we fans are likely to purchase.

2. every artist/band should cater to fans all over the world. So they must ensure that their songs are put up on stores for sale. they should even release singles exclusively for his fans!

3. most international musicians ensure that their website remains updated; and we fans are glued to their sites / RSS feeds. Unfortunately, many musicians from India have not understood the real potential of the net yet. And many of them don’t have websites either!

So here was a brief encounter of a die-hard fan who was in a way ‘forced’ to download a song illegally, when he intended to buy it…

Now let’s talk numbers:

Online music sales account for 15 percent of the global market. Compared to other industries, music is second only to games in its transition to digital revenues. For newspapers, it is 7 percent, for films it is 3 percent, and for books only 2 percent. (All of these are global figures).
Governments are starting to accept that Internet Service Providers (ISPs) should take a far bigger role in protecting music on the internet, but urgent action is needed to translate this into reality, a new report from the international music industry says today.

Some more facts on digital music sales:

  • The first-ever global music download sales chart is topped by Avril Lavigne, who sold 7.3 million track downloads of her song Girlfriend across the world in 2007
  • Single track downloads, the most popular digital music format, grew by 53% to 1.7 billion (including those on digital albums)
  • The music industry is more advanced in terms of digital revenues than any other creative or entertainment industry except games. Its digital share is more than twice that of newspapers (7%), films (3%) and books (2%)
  • There are more than 500 legitimate digital music services worldwide, offering over 6 million tracks – over four times the stock of a music megastore
  • Progress in the digital music market is being hampered by lack of interoperability between services and devices, and lack of investment in marketing of new services
  • Research by IFPI debunks a myth about illegal P2P services: in fact, fans get better choice on legal sites. IFPI conducted research with a sample of 70 acts on the legal site iTunes and on the copyright infringing service Limewire. In 95 per cent of searches the artists requested had more songs available on iTunes than on the leading P2P service.

Are musicians in India taking notes?

 * IFPI Digital Music Report 2008