Building a digital industry
Record companies have transformed their business models for the digital age. They have licensed around 500 diverse digital music services around the world, making up to 37 million tracks available to be listened to at anytime, anywhere and on any device.
Digital retailers are continuing their rapid global expansion. At the start of 2011, the major international services were present in 23 countries. Two years later, they are in more than 150 countries worldwide. Globalisation is opening up new markets, with record companies now able to reach consumers in territories where there was previously little retailing infrastructure.
Digital music is fuelling innovation as retailers upgrade their services and add new features and functionality to ensure they offer a better user experience than their unlicensed alternatives. Research from Ipsos MediaCT shows that satisfaction levels with these services is high internationally. 77 per cent of the users of licensed services rate them as excellent, very good or fairly good. In more developed digital markets, satisfaction levels are even higher – 82 per cent in the US and 80 per cent in Sweden.
See below some case studies showing how record companies have adapted their skills to the digital world
“Pirate services are clunky and old fashioned compared to the legal services available. The pirate option just cannot offer that complete consumer experience.”
Rob Wells, president, global digital business, Universal Music Group (UMG)