MUSIC INDUSTRY MUST ADAPT TO NEW DIGITAL ENVIRONMENT.

• Position: International Music Market

The music industry, gathering in Cannes at the end of January for MIDEM 2004, the 38th International Music Market, once again recognised the urgent need to adapt to the digital environment or face oblivion. One of the few artists to have recognised from the outset the cultural and economic revolution caused by the entry of the record into the digital age, Peter Gabriel suggested that "the old model is slowly dying". Head of the OD2 European Online Distribution platform, the former leader of rock band Genesis quickly understood that the physical medium (currently symbolised by the CD) belongs to the past, supplanted by on-line distribution via computers.

The record "majors" (BMG, EMI-Virgin, Sony Music, Universal and Warner, which represent about 90% of international turnover in the sector) initially sought to hold back the tide, denouncing massive illegal distribution. They blame this piracy for the major crisis that hit the global record industry in 2003 (10% cut in turnover to a little less than 30 billion dollars). However, the introduction of new legal on-line music distribution models in the course of 2003, like Apple's I-Tunes digital juke box, has given the industry fresh hope. Since its launch in April 2003, I-Tunes has sold 19.2 million songs (at 99 US cents per unit) in America alone, whereas in the past...