European retailers and record companies consult
on getting consumers back into shops

Cannes, 25th January, 2004

Leading European entertainment retailers and record company heads met at the Midem music industry trade fair in Cannes today to discuss strategies for getting consumers back into record stores. A key issue is how to make the most of the combined expertise of the recording industry and retailers. With piracy, both off-line and on-line, continuing to be a huge drain on the industry, they stressed their cooperation in the fight against piracy to secure the future of the music industry in Europe.

Entertainment retailers and recording companies exchanged ideas on how best to meet consumer demand for the fast delivery of top quality and diverse music appealing to a range of age groups. Simon Wright, CEO of Virgin Entertainment Group and GERA-Europe president said: "We are committed to having a dialogue with record companies on how to drive consumer interests and cater for a wide range of musical tastes. It is also vital to raise consumer awareness of how piracy undermines investment in new talent and ultimately affects diversity of choice."

John Kennedy, President and COO of Universal Music International and chairman of IFPI's European Regional Board, said: "We greatly appreciate our longstanding relationship with entertainment retailers who have such valuable experience of the music market. We want to exchange information about best practices in Europe. We also want to continue to explore creative ways of serving consumers and encourage consumers to purchase music from legitimate sources."

In order to improve the buying experience for consumers, entertainment retailers and record company executives agreed on the following work programme for 2004:

• Exchange information on best practices for the promotion of music.
  
  
• Continue to offer and develop a wide range of titles, genres and back catalogue in stores.
  
  
• Offer enhanced listening experiences to consumers.
  
  
• Assist consumers in their discovery of new products.
  
  
• Involve entertainment retailers in the progression of legitimate on-line music services.
  
  
• Make record stores attractive to consumers all year round.

Notes to Editors:

GERA-Europe The Global Entertainment Retail Association-Europe represents European entertainment retailers and their national associations at European level with respect to all issues that affect the way entertainment retailers do their business. members include entertainment retail associations from Austria, Belgium, France German, Italy, the Netherlands and the U.K.

IFPI is the organisation representing the recording industry worldwide. It has affiliated National Groups in 46 countries and its membership comprises more than 1,500 record companies worldwide.

For further information contact:

Francine Cunningham at IFPI on
tel: +32 (0)2 511 92 08; GSM + 32 478- 261.995
E-Mail: francine.cunningham@ifpi.org

Lucy C. Cronin at Gera-Europe on
tel: +32 (0)2 626 1991; GSM: +32 476 - 643.245
E-mail: lucy.cronin@gera-europe.org