Illegal internet downloaders are in decline if one goes by the findings of Entertainment Media Research’s 2008 Digital Music Survey produced in association with media law firm Wiggin. Attitudes towards Blu-ray, VOD and mobile video are also surveyed.

Carried out in July 2008 and based on an online survey of 1,500 UK music consumers aged 13-59, the 2008 Digital Music Survey – now in is fifth year – suggests that the industry can now battle more effectively for the monetisation of its content and gives three reasons for optimism.

Firstly, it indicates that the population of illegal downloaders in the UK has declined by 10% since 2007, deterred by a number of factors, but in particular by the threat of action against them and the availability of free legal music in the form of streams, downloads and webcasts.

The survey found that 72% of illegal downloaders say they would cease if contacted by their ISP. Only a minority (6%) say it wouldn't bother them at all if their ISP terminated their contract because of illegal downloading.

The massive growth in available free music is diluting the need to download illegally. Over one quarter of all users of social networks have downloaded music for free and over 1 in 2 (52%) of illegal downloaders say there is no need to steal because of the availability of free legal music to download or stream.

The second cause for optimism is the growing maturity of the digital model and exciting new revenue opportunities. For the first time the incidence of legal downloaders has crossed the half way mark (51% of consumers) up by 9% from 47% in 2007. The growth in legal downloading is being driven mainly by the over 45s up from 28% to 39% and the 35-44 year olds up from 36% to 44%.

Some 40% over 35s are now buying downloads at least once per month. This growth is being driven by the perceived functional advantages of downloads and in particular the ability to cherry-pick tracks and sample an album before deciding to buy the CD.

There are new revenue opportunities associated with digital delivery platforms eg 12% of consumers are willing to pay to watch live webcasts of gigs, and 34% are interested in going to cinemas to watch live gigs or DVD premieres.

The third major reason for optimism is the growth of YouTube which has overtaken MySpace (41% Vs 25%) as the preferred social network for music and in doing so has reaffirmed the permanent value of music and music videos in particular.

Some 47% of respondents prefer to watch a music video if it is available than simply listen to a track and 71% say the artist's official music video is the most desirable digital content.

Nearly three quarters (71%) say they can find all the music videos they want on YouTube. The announcement of YouTube's e-commerce platform therefore gives the music industry a two-fold monetisation opportunity - a share of the streaming-related advertising income and a share of the digital download revenue.

The survey shows that despite the ubiquity of free music, there's an increasing willingness on the part of consumers to pay for music products if the package is right. This is a real opportunity for all constituents in the industry as they continue to work together with others to create those packages.

Story filed 20.10.08