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18.05.12 MusicWeek 19
C. THE VALUE OF CD COPYING IS NOT EXHAUSTED - SMARTPHONES AND TABLETS
The market for standalone MP3 players has arguably peaked. However, device manufacturers have not exhausted the value from private copying – for both smartphones and tablets the value of copying music from CDs remains considerable – remarkable even – given that their multi- functionality (see Fig.C below). In terms of smartphones, the O&O research
shows that consumers today attribute between 2.59% and 4.13% of the price of a device directly to the ability to play music copied from CDs. In monetary terms, this represents £6.67 to £23.60 per device. Given that around 44% of the UK’s adult
According to data Future Source Market
Analysis, approximately 50 million MP3 players were sold in the UK between 2005 and 2010. A simple calculation of 50 million dedicated MP3 players multiplied by the £65.17 attributable to private copying to a mid-range MP3 player equates to more than £3.2 billion. This is a crude sum but serves to show the magnitude of the commercial value in private copying.
ABOVE Head in the cloud: The research suggests that backing up music is seen as more important to consumers than saving movies
population is estimated to have a smartphone, this would place the value to date that consumers place on being able to play music copied from CDs onto smartphones therefore rests somewhere between £153m–£542m.
D. MUSIC IN THE CLOUD: A VALUABLE CURRENCY FIG.C
Amazon, Apple and Google all launched cloud- based services in 2011 aiming to link and tie devices, storage and access to their own cloud platforms. Although such services are embryonic (O&O suggest that only 6% of the UK population over the age of 16 currently uses a commercial cloud service) music is likely to play a key role in their future growth. After personal photos and documents, music
comes in third place as the most important type of data for consumers to back up. Backing up your digital music collection is seen as more important than saving movies, games and e-books combined (see Fig.D below).
This important new research provides the most rigorous, robust, and verifiable data on the commercial value of “music copied from CD” in today’s market. The research has been subjected to peer-review by an independent academic expert and UK Music has offered to share the raw data with Government economists for further scrutiny. UK Music is determined to raise the quality of
evidence available for policy-makers to inform legislative decisions. This analysis should be seen as a clear indication of this commitment, and indicative of what can be expected in the future.
FIG.D
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