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  1. 1. Spain<br />MUSIC MARKET ANALYSIS<br />Julio Rodriguez-Lavin<br />ID: 09037075<br />
  2. 2. Spain<br />Member state of the European Union.<br />Government: parliamentary democracy under a constitutional monarchy.<br />Population: 46.7 millions.<br />GDP per capita: US$ 33,700.<br />The 9th largest economy in the world.<br />Capital: Madrid.<br />Religion: Roman Catholicism (76%).<br />Language: Castilian (Spanish), Catalan, Euskera and Gallego.<br />Current rate of unemployment: 20.5%<br />
  3. 3. Music Business scenario<br />Spain is the 10th largest record market in the world.<br />One of the worst-performing markets in Western Europe over the last 5 years.<br />From 2005 to 2009:<br />European sales fell by 23%.<br />Spanish sales dropped 43%.<br />The market is 38% of its value in 2001.<br />*(IFPI, 2010)<br />
  4. 4. Music Industry features<br />The “Big Four” control the 91% of the market.<br /> The rest of the pie (9%) is divided among the independent labels.<br />*(FEDEA, 2010)<br />
  5. 5. Main industry bodies<br />Promusicae is a trade group representing the Spanish recording industry. Its main goal is to defend the interests of Spanish music producers.<br />SGAE is the main collecting society for songwriters, composers and music publishers in Spain. It is similar to ASCAP.<br />The sound of Spain: platform created to support the Spanish music at the international markets. Special trade missions: New York (07-08), Beijin (08) and Mexico (09). It has attended the most important international meeting points, such as Popkomm (Berlin) or Midem (Cannes). <br />
  6. 6. Music Industry Features<br />Main magazines <br />Revista 40 Principales<br />Rolling Stone<br />Radio <br />40 Principales<br />Cadena Dial<br />Cadena 100<br />M80<br />Radio 3<br />TV<br />40tv<br />40 latino<br />MTV<br />Sol musica<br />*(PRISA)<br />
  7. 7.
  8. 8. Music video<br />
  9. 9. Recorded music sales trend 2009<br />US million<br />*(IFPI, 2010)<br />
  10. 10. Online piracy <br />A total of 8.6 million* users are engaged in illegal file-sharing.<br />32% of Internet users frequently downloading illegal music from P2P sites. More than double of the European average (15%)*.<br />Recently, a new report from IDC Research showed that 96% of all recorded music acquired online in Spain is pirated (2010).<br />Main causes:<br />29.1 million Internet users (72% of the population).<br />Economic recession. <br />Legal vacuum. <br />Physical piracy rate has dropped to 10% in 2009<br />*(IIIPA 2010)<br />
  11. 11. IMPACT <br />In 2009 total value of the market set at $246 millions (-14,3%).<br />“For every ten copies bought in Spain at the beginning of the decade, today's fans will take home only three” (Economista, 2010).<br />Decline of investment <br />Repertoire<br />While 10 domestic new acts would be signed by a major in 2005, today only 3 or 4 are signed.<br />In 2009, no presence of new acts on the top 50.<br />*(IFPI, 2010)<br />
  12. 12. Best selling albums 2009<br />Only the top 3 acts managed to sell more than 100.000 copies<br />Certification<br />*(IFPI, 2010)<br />
  13. 13. Response to the current scenario<br />Government developed “The Sinde Law”<br />A provision aimed to regulate copyright and intellectual property rights on the Internet.<br />Websites offer illegal material to download will be targeted, through a Commission (IPC) depending on the Culture Ministry.<br />Legal vacuum<br />Previous cases judges argued P2Ps do not infringe the law, because content is shared without a “commercial profit”.<br />The law allows to make private copies of copyrighted work without the author's consent for published works if the copy is not for commercial use.<br />The provision is in “limbo” until next year<br />
  14. 14. Live music: good news<br /> In 2009, live music reached a profit of US$ 367.4 million vs US$ 246 million from the recorded music sales.<br />In 2000 21.8 million viewers while in 2008 more than 33 million. <br />In 2000, 71,045 concerts took place in Spain, whilst in 2008 the numbers doubled to 144, 859 concerts. <br />During the same period, ticket’s price has raised 75%.<br />*(IFPI, 2010)<br />
  15. 15. The future<br />Physical sales will keep dropping during 2010 (A recent research shows -12% duringthe 1st semester).<br />Live music revenues will not grow due to the economic hardship.<br />Less investment = more difficult to develop new talent= no international acts.<br />Established acts are focusing on other territories (Latin America/North America). They are adapting these international patterns to succeed.<br />Legal solution on the way?<br />
  16. 16. Thanks!!!!!!<br />ANY QUESTION?<br />Gracias!!!!!!<br />
  17. 17. References<br />Chacón, F. (2010) Los conciertosmueven en España 275 millones, El Mundo, 24 Feb. 2010 [Online] Available from [Accessed 13 Nov. 2010].<br />El Economista (2010) La venta de música en Españacayó un 17% en 2009, El Economista, 21 Jan. 2010 [ Online] Available from [Accessed 10 Nov. 2010].<br />FEDEA(2010) Informesobre la industria de la música 2010 [Online] Available from [Accesed 18Nov. 2010]<br />IFPI (2010) Digital music report 2010 [Online] Available from [Accessed 10 Nov. 2010].<br />IFPI (2010) Recording Industry in Numbers 2010, IFPI: London <br />IFPI (2009) Recording Industry in Numbers 2009, IFPI: London <br />IIPA (2010) Special 301 Report on Copyright protection and enforcement [Online] Available from [Accessed 8 April 2010].<br />Llewellyn, H. (2010) Spanish Online Piracy Rate Nears 96%, Billboard, 2 June 2010 [Online] Available from[Accesed 18Nov. 2010].<br />Ministerio de Economia y Hacienda (2010) Proyecto de Ley de Economiasostenible [Online] Available from [Accessed 15 April 2010].<br />Pormusicae(2010), Sound from Spain, 8 Oct. 2010, [Online] Available from [Accessed 13 Nov. 2010].<br />Rodriguez, S. (2010) Cierre de 'webs' por la puerta de atrás, El Mundo, 19 March 2010 [Online] Available from [Accessed 13 Nov. 2010].<br />