NMPA_International_Survey_12th_Edition
NMPA_International_Survey_12th_Edition
NMPA_International_Survey_12th_Edition
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>NMPA</strong> INTERNATIONAL SURVEY TWELTH EDITION INTERNATIONAL YEAR IN REVIEW 2002<br />
court to award more damages to a<br />
copyright owner.<br />
CD/CASSETTE PIRACY<br />
The global market for pirated<br />
music product continues to rise at<br />
an alarming rate, while trade<br />
organizations and law enforcement<br />
officials continue to battle<br />
against the trend.<br />
According to IFPI Music Piracy<br />
Report 2002, global sales of pirate<br />
music discs rose nearly 50% to 950<br />
million units in 2001. IFPI places<br />
the dollar value of such activity at<br />
$4.3 billion, a slight increase over<br />
the previous year.<br />
IFPI places the lion’s share of<br />
blame on the growth of organized<br />
CD-R piracy,saying that commercial<br />
CD-R pirate sales tripled in 2001 to<br />
450 million units. The group found<br />
that commercial CD-R piracy rose<br />
in particular in Latin America,<br />
North America and Southern<br />
Europe in 2001. South East Asia<br />
and, to a lesser extent, Eastern<br />
Europe are seen as the predominant<br />
centers of large-scale factorypressed<br />
pirate music CDs.<br />
According to the Music Piracy<br />
Report,an estimated total of 1.9 billion<br />
pirate recordings, including<br />
discs and cassettes, was sold in<br />
2001 (up from 1.8 billion in 2000),<br />
meaning that two in every five<br />
recordings sold worldwide is an<br />
illegal copy. Pirate disc sales rose<br />
48% from 640 million units in 2000<br />
to 950 million units in 2001; within<br />
that total, pirate CD-R disc sales<br />
tripled to 450 million units while<br />
factory-manufactured discs rose to<br />
500 million units, compared to 475<br />
million in 2000.<br />
The increase in the value of the<br />
music pirate market (from $4.2 billion<br />
in 2000 to $4.3 billion in 2001)<br />
was limited by sharply falling<br />
prices of pirate CD-R discs. The<br />
report values the illegal market at<br />
pirate prices and does not estimate<br />
losses to the industry, which it says<br />
are far greater than $4.3 billion.<br />
The report also states that illegal<br />
music sales outnumber legal sales<br />
in 25 countries—predominantly<br />
developing markets—compared to<br />
21 in 2000 and 19 in 1999.Territories<br />
where piracy is at a rate of over 25%<br />
and notably worsening include<br />
Brazil, Central America, the Czech<br />
Republic, Slovakia, Spain, Thailand<br />
and Russia. Ukraine, where the U.S.<br />
has imposed sanctions over the failure<br />
to effectively regulate optical<br />
disc plants, remains a largely pirate<br />
market, and is also still a main distribution<br />
point for pirate CDs.<br />
The top five priority countries in<br />
terms of domestic piracy levels are:<br />
China (90%), Russia (65%), Brazil<br />
(55%),Indonesia (85%) and Mexico<br />
(60%).<br />
In the U.S.,CD-R piracy increased<br />
significantly: 2.8 million pirate CD-R<br />
discs were seized in 2001, up from<br />
1.6 million in 2000.<br />
Meanwhile, European Commission<br />
figures released in July 2002<br />
showed that seizures of pirate discs<br />
at the E.U.’s external borders<br />
soared by 349% to more than 40<br />
million items in 2001. Pirate CDs<br />
account for nearly half the E.U.’s<br />
estimated two-billion Euro pirate<br />
and counterfeiting business.<br />
The European Commission’s<br />
July 26 report on counterfeiting and<br />
piracy stated that CDs (including<br />
audio, games and software), DVDs<br />
and cassettes are the fastest-growing<br />
category of pirate goods,<br />
accounting for 42% of the total<br />
seized for 2001, and that a number<br />
of customs investigations showed<br />
potential links between piracy and<br />
certain terrorist networks.<br />
Concurrently,there now are more<br />
unauthorized music files available<br />
on the Internet than at the height of<br />
Napster's illegal service.A recent survey<br />
by Internet market research firm<br />
Jupiter Media Metrix found estimates<br />
that 3.1 million more people<br />
were using peer-to-peer networks in<br />
March 2002 than in February 2001<br />
when Napster was at its peak.<br />
CD burning has also badly hit the<br />
European music sector. In Germany,<br />
the number of blank CDs used to<br />
burn music was estimated at 182<br />
million in 2001, compared to 185<br />
million CD album sales, according<br />
to a March 2002 survey by market<br />
research firm Gfk. In Spain, 71 million<br />
albums were sold in 2001 compared<br />
to an estimated 52 million<br />
blank CDs used to burn music,<br />
according to a survey by Millward<br />
Brown/Alef.<br />
26