1. The European Music Sector State of play, challenges and ways ahead Fabien Miclet European Music Office

2.  A soft power tool From Beethoven to Adele: a strong heritage A mosaic of genres (national folklores, classical, popular) Europe's trademark: a mixed model Music: an asset for Europe CC © Universal Music Group © Bjork

3.  A rich and diverse ecosystem Europe: 50% of global music publishing revenues and 1/3 of global recording sales (source: IMPALA) Recorded music: physical, radio, online, mobile, video games, cinema, TV... Live music: festivals, venues -> macro to micro Market structure: Majors, independents, not for profit, public support Music: an asset for Europe  No 'one stop shop' approach © Rock am Ring CC

4. 2001-2013: A double difficulty ‘Digital shift’ (new distribution channels, consumer choices) + recent economic downturn  rise of online piracy combined to decline of physical and live music sales Challenges  2008: 40 billion music files shared worldwide, piracy rate 95% (source: IFPI).  Physical revenue in Europe: €7.1 billion in 2000 to €3.1 billion in 2010 (source: IFPI)  Case of Finland  Economic crisis : decline in ticketing figures for venues and festivals Source: IFPI digital music report 2013

5.  2012: growth of global music sales (0.3%)-> first time since 1999 (IFPI)  Boost: legal online services, mobile apps, rise of subscription services (Case of Finland)  Good news, but does it benefit European operators, artists, music listeners? Challenges Source: IFPI digital music report 2013

6. Challenges Obstacles to cross-border circulation: a key issue  Market obstacles to circulation of repertoires across EU borders radio choices language diversity  Variety of national regulatory regimes in the EU Taxation collective rights management Cross-border licensing issues  Low level of cross-border circulation of EU music repertoire (EMO study)

7. Challenges Obstacles to cross-border circulation: a key issue Source: ‘Music Crossing Borders’, EMO / E. Legrand

8. Challenges Obstacles to cross-border circulation: a key issue  Same problem for European music outside the EU borders (regulations, language barriers and promotional environments )  The EU, a single market... for US music? (EMO study)  Vastly untapped potential

9. Challenges Obstacles to cross-border circulation: a key issue Source: ‘Music Crossing Borders’, EMO / E. Legrand

10. Harmonizing online rules Policy Collective rights management: transparency and cooperation Multi-territorial licensing: reduce cross-border transaction costs (KEA) Access to finance, incentives to take risks and innovate (Creative Europe, financial guarantee) Taxation: online and offline equity Improving the financial framework European Commission

11. Cross-border circulation: a crucial area of action  Encourage cross-border live music tours and concerts (Creative Europe)  Promotion (recorded sales) + performance rights + revenue for venues and festivals + spillover effects (tourism, contractors, etc.)  Best means for non Anglo-Saxon artists to overcome market hurdles (radio, labels, etc.)  Radio incentives to play EU repertoire : embrace linguistic diversity (+online services)  EU music Observatory to quantify circulation and mobility  Support international tours, export offices, showcases, visibility (soft power) Policy © EMI © Universal Music Group

14. Thank you fabien.miclet@emo.org www.emo.org