The OECD takes on Digital Music
The OECD (Organisation for Econocomic Co-operation and Development) publicly published a few days ago its Report on Digital Music. A very insightful read, it exposes key insights on how the music industry is shifting from a physical media business down to a broadband content business. It also debunks some of the most extreme (and caricatural) depictions of the Internet music industry as being the sole haven of piracy by showing how the value chain is currently reshaping itself and creating new models to better understand both the "Consumers as users of music content" and its dual perspective, the "New content created by network users". In short, from broadcast to broadcatch.
While this rethinking in terms of technology (how to find a proper DRM compromise? How to ensure inter-operability?), legislation (what is the new meaning of fair use? How can Intellectual Property rights evolve?) and business (what is the proper mix of content and network? Which payment models are adapted) is still under way, legal online music stores have already gained a solid foothold against free file-sharing network: as noted in this Reuters article, "around 35% of music consumers now download tracks legally via the Internet and the percentage will soon pass the 40% who have pirated music". Interesting times for new media in general, and "music 2.0" in particular!
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