The European Music Sector
State of play, challenges and ways ahead
Fabien Miclet
European Music Office
Music: an asset
for Europe
 A soft power tool
From Beethoven to Adele: a strong
heritage
CC
A mosaic of genres (national
folklores, classical, popular)
Europe's trademark: a mixed model
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© Bjork
© Universal Music Group
Music: an asset
for Europe
 A rich and diverse
ecosystem
•
Europe: 50% of global music publishing
revenues and 1/3 of global recording
sales (source: IMPALA)
•
Recorded music: physical, radio,
online, mobile, video games, cinema,
TV...
•
Live music: festivals, venues -> macro
to micro
•
Market structure: Majors,
independents, not for profit, public
support
© Rock am Ring
CC
CC
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 No 'one stop shop' approach
Challenges
2001-2013: A double difficulty
‘Digital shift’ (new distribution channels,
consumer choices) + recent economic
downturn
 rise of online piracy combined to
decline of physical and live music sales
Source: IFPI digital music report 2013
 2008: 40 billion music files shared worldwide,
piracy rate 95%
(source: IFPI).
 Physical revenue in Europe: €7.1 billion in 2000
to €3.1 billion in 2010 (source: IFPI)  Case of
Finland
 Economic crisis : decline in ticketing figures for
venues and festivals
Challenges
 2012: growth of global
music sales (0.3%)-> first
time since 1999 (IFPI)
 Boost:
legal
online
services, mobile apps, rise
of subscription services
(Case of Finland)
 Good news, but does it
benefit European operators,
artists, music listeners?
Source: IFPI digital music report 2013
Challenges
Obstacles to cross-border circulation: a key issue
 Market obstacles to circulation of repertoires across EU borders
• radio choices
• language diversity
 Variety of national regulatory regimes in the EU
• Taxation
• collective rights management
• Cross-border licensing issues
 Low level of cross-border circulation of EU music repertoire (EMO study)
Challenges
Obstacles to cross-border circulation: a key issue
Source: ‘Music Crossing Borders’, EMO / E. Legrand
Challenges
Obstacles to cross-border circulation: a key issue
 Same problem for European music outside the EU borders
(regulations,
language
barriers
and
promotional
environments )
 Vastly untapped potential
 The EU, a single market... for US music? (EMO study)
Challenges
Obstacles to cross-border circulation: a key issue
Source: ‘Music Crossing Borders’, EMO / E. Legrand
Policy
Harmonizing online rules
• Collective rights management: transparency
and cooperation
• Multi-territorial licensing: reduce cross-border
transaction costs (KEA)
Improving the financial framework
• Access to finance, incentives to take risks
and innovate (Creative Europe, financial
guarantee)
• Taxation: online and offline equity
European Commission
Policy
Cross-border circulation: a crucial area of
action

Encourage cross-border live music tours and
concerts (Creative Europe)

Promotion (recorded sales) + performance
rights + revenue for venues and festivals +
spillover effects (tourism, contractors, etc.)
 Best means for non Anglo-Saxon artists to
overcome market hurdles (radio, labels, etc.)

Radio incentives to play EU repertoire :
embrace linguistic diversity (+online services)

EU music Observatory to quantify circulation
and mobility

Support international tours, export offices,
showcases, visibility (soft power)
©EMI
©Universal Music Group
Thank you
fabien.miclet@emo.org
www.emo.org