TORONTO, Canada (CRIA/ www.cria.ca) - A report released in London, UK, today indicates a phenomenal surge in the online digital marketplace in
Europe and the US. Unfortunately, Canada lags behind other industrialized countries when it comes to the business of online music sales, reports the Canadian Recording
Industry Association (CRIA).
In its 'Digital Music Report 2005,' released today, the International Federation of the Phonographic Industry (IFPI) indicates that legal digital music is moving into the mainstream of consumer life. With burgeoning services and available repertoire, the market is growing and consumers are becoming more and more responsive.
IFPI reports that music fans downloaded more than 200 million tracks from legitimate sites in 2004, up from 20 million in 2003. Moreover, the number of online sites where consumers can buy music legally has hit more than 230 up from 50 a year ago.
'It's heartening that the international scene for the online digital music business is blossoming. This is an integral part of the future of the industry and Canada is and will continue to be a part of it,' comments CRIA President Graham Henderson, reacting favourably to the IFPI report. 'But I'm afraid the lawless environment in Canada is holding us back.'
Pointing to a December 2004 report by the Organization for Economic Development and Co-operation (OECD) called 'Information Technology Outlook,' Mr. Henderson remarks that 'It's pretty difficult to ignore a major international study that states simply: 'Canadians seem to be the most intensive users [of peer-to-peer file-sharing].
In no other country does the number of users, as a share of total population, exceed one percent.' If Canadians are comfortable file-sharing, they should be able to make an easy switch to a legitimate online music marketplace, once the proper conditions are in place. CRIA is committed to working with the Canadian government to create a more predictable environment for Canadian online retailers and consumers.'
'We're very excited about the success that digital services are having in Canada and the rest of the world. The pendulum is swinging here in Canada where we too are very much in a growth mode,' adds Alistair Mitchell, co-CEO and founder of Canadian online music retailer, Puretracks. 'Just imagine what we could accomplish given the legal environment being adopted elsewhere around the globe.'
'At CRIA,' says Mr. Henderson, 'we remain very optimistic about the future of our own online marketplace. There are now a number of businesses offering new services like music downloads and mobile phone ringtones. And, given some economic stability and consumer confidence, they should take off in the next year.'
'We have a great deal to be proud of in Canada,' continues Mr. Henderson. 'Our performing artists are among the most recognized and successful in the world. This IFPI report is really positive news and a good reason for the long-overdue ratification by the federal government of World Intellectual Property Organization (WIPO) Treaties. These treaties will bring the Canadian copyright law into the digital age.
'Then, as Canada joins some 50 other nations in updating its copyright law and ratifying digital copyright treaties, our artists and other rights holders will enjoy a legal environment in which they'll have a choice of seeking compensation for their work, no matter how it is distributed. We're convinced that, in time, you'll see Canada sharing in the ongoing story of what we expect will be unlimited growth in on-line music sales.'
The Canadian Recording Industry Association (CRIA) promotes the interests of Canadian record companies and artists. CRIA represents the producers, manufacturers and distributors of more than 95 per cent of all records produced and sold in Canada.
IFPI represents the recording industry worldwide with over 1450 members in 75 countries and affiliated industry associations in 48 countries.
A pdf copy of the IFPI Digital Music Report and accompanying media material is available at www.ifpi.org.
