Online music distribution is set to grow significantly over the next
few years, forcing industry to reconsider their business models and
posing regulatory challenges to governments, according to a new OECD
report on the digital music industry.

A ‘re-evaluation’ of music distribution needs to happen to achieve a
balance between consumers’ desire to access digital music and the
industry’s copyright protection concerns…. Instead of paying a set fee to download an individual song, music
downloads might become part of a subscription package from a cable
television company, internet service provider or mobile-phone carrier,
the OECD said.

  • A key requisite for the creation of efficient online music
    delivery is a competitive and wide-spread access to broadband
    infrastructure. The delivery of online content also necessitates new
    technologies and an environment that facilitates the creation,
    acquisition, management and delivery of content. Effective and secure
    (micro)-payment systems are needed.
  • Alliances between content providers, broadband and technology
    providers that come up with new business models play a critical role in
    driving the adoption of licensed content services.
  • A diversity of interoperable content, standards and hardware are
    likely to prove most beneficial to efficient online content markets.
    With vertical integration, lock-in of consumers to certain standards,
    and difficult access to certain content, an environment where small and
    innovative players can compete should be maintained.
  • The OECD notes the importance of government actions to take steps
    to address online piracy. Around one third of Internet users in OECD
    countries have downloaded files from P2P networks. While, in principle,
    file-sharing software is a new and innovative technology, piracy is an
    important impediment to legitimate online content services. The most
    important is to find equilibrium of available legitimate and innovative
    uses of new technologies and the necessary protection of associated
    intellectual property rights (i.e. copyrights).
  • The Internet already provides new forms of advertising at lower
    cost, lower barriers to entry for artistic creation and lower costs of
    finding new talent. However, the effects of authorised and unauthorised
    file-sharing and digital music services with pay-per track offers on
    artists and the music supply are not yet obvious and need further study.

Read the Organisation for Economic Co-operation and Development Report

We Welcome Your Comments


1 reply
  1. Tylor says:

    Fantastic point about access to broadband infrastructure being crucial to creativity and efficient delivery. As far as new technologies, under the “music” interest category at there’s a tip about Bit Torrent as a great tool for downloading concerts. Don’t know much about it! Anyone used it?

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