Fact Sheets - Internet Piracy

SEE ALSO

Press Release

Scope of the problem

IFPI data shows simultaneous users (logged on at any one time) of pirate services increased from 3 million in June 2002 to 6.2 million as of January 2004.
Internet file-sharing involves 800 million unauthorised music files at any one time.
This is a reduction of 20% since the peak of 1 billion files in April 2003. Web and FTP sites offer another 100 million unauthorised music files.
A large majority of unauthorised files (74%) are being made available by a small minority of peer-to-peer users (16%, according to US research consultancy Net PD Sept 2003)

The effects of internet piracy

Surveys in all major markets prove this is a major factor in the fall in world music sales, down 7% in 2003, and down 14% in three years.
In the past five years, retail sales of CD and cassette sound recordings in Canada have decreased by almost 30% representing losses of more than $425 million
Between 1997 and 2003, the value of the German music market lost 800 million euro - that's a fall of more than 30% over three years
In Denmark, sales of CD albums have fallen by 9 million units - nearly 50% - in three years, to just 10 million
In Italy, between 2001 and 2003 music sales fell by 50 million euro - an 8% drop
27% of music consumers surveyed internationally said that their spending decreased since they began file-sharing and downloading. The percentage is higher in younger groups where this activity is more concentrated (independent studies in the US, Canada, Germany, Japan and Australia)
More than 40% of frequent downloaders in Europe buy less music now than they did before they began downloading (Forrester Research, Europe, January 2003).

Awareness and attitudes towards file sharing

An average of 66% of surveyed respondents in four European countries are aware that unauthorised file-swapping is illegal. This is even higher than the corresponding levels of awareness in the US (64%) in December 2003, after three waves of US lawsuits against individuals (IFPI data, 2004).
Litigation has played a critical role internationally in improving the public's awareness that file-swapping is illegal. Awareness of illegality of file-swapping is higher among people who have heard that the industry has taken legal actions against file-swapping services and users (59%) (IFPI data, 2004).
Half of all respondents in four European countries (53%) think that the prospect of legal action by music copyright holders would make illegal file-swappers stop or reduce their activities (IFPI data, 2004).