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Music driving UK demand for tech, BPI study says
By Andy Malt | Published on Thursday 2 October 2014
A new BPI study has suggested that Britain’s desire for music has lead to increased sales of consumer technology products – calculating that music drove £11 billion of additional revenue for the tech industry between 2008 and 2012.
The record industry trade group’s study states that UK consumers spend around 23% more on music than in other G7 countries, and this in turn correlates to increased tech sales. For every 1% increase in demand for music, for instance, there is a 1.4% correlating increase in smartphone purchasing. And that rises to 2.2% for tablets.
Of course, you could argue that gadget-happy people realise the possibilities for consuming more music once they’ve bought their shiny new internet-connected devices, and that the BPI has got this all the wrong way around. But how’s that going to convince government and tech companies to place more value on music? Shut up, you.
While over the five years studied, tech companies apparently made £11 billion simply from having music available on their products, the recorded music sector only brought in £4.2 billion for itself. So, you can see why the record industry might now feel like it could do with having its back scratched in return.
But how? Well, let’s just say it’s an amazing coincidence that this study has been published just as the new private copy right comes into effect. This puts into UK law the right for people to legally rip tracks from their CDs to their computers and then put them on their MP3 players. Their MP3 players that over five years put £384 million into the pockets of the tech industry, purely because buying them gave people access to music (says the BPI study).
In other European countries, the private copy right (long established there) is offset by a ‘levy’ charged on tech devices and paid back to the music industry, in recognition that those devices (starting with cassette tapes way back in the mists of time) are used for purposes only possible when recorded music can be copied.
The UK government is not putting such a levy in place as the new copyright exemption goes live here, something which music industry trade bodies (like, say, the BPI) are not particularly pleased about. And it’s possible that they will challenge this move in the courts, likely arguing that having no levy in place puts the UK out of kilter with the rest of Europe. The tech sector is making a similar argument – though with the slight tweak that the UK not having a levy should be a cue for other European countries to drop theirs as well. So that’s fun.
Talking up the new study, BPI big cheese Geoff Taylor said this morning: “It is well-known that recorded music is one of the UK’s most successful exports, but this study demonstrates that Britain’s love of it also boosts our economy by generating billions of pounds a year in additional consumer technology sales”.
Really pushing the point, he added: “The relationship between music and tech is symbiotic. Record labels work hand in hand with technology companies every day to create fantastic digital music experiences for fans. The spirit of innovation that drives technology forward also lies at the heart of the authentic and unique global appeal of British music – and the fast-growing tech sector stands to benefit from the wonderful creativity of our musicians”.
Then under his breath, he whispered “you bastards”. Maybe. No, I’m sure he didn’t. He’s very professional. He’d just think it quietly to himself later when no one was looking.
