Category Archives: Comparative

European comparison: who pays ever for music, film or software?

Private copying drivers in Europe

In our recent private copying reports we compiled European survey data relevant to analysis.  In Europe, there is a big difference between the use of electronic entertainment devices in richer and poorer countries. Nevertheless, the real difference is between the number of people who sometimes and who never pay for downloaded music, films and software. In some countries of Europe, less then 10 percent of the population ever pays for the content that is loaded to their computers, smartphones and tablets.  These survey data, accompanied by other objective data, can help explaining 96% of the variance among digital music sales levels within the EU countries, and it is highly relevant in calculating the economic benefit of home copying for users, and the harm for rightsholders.

National and regional Google Analytics is back

After some programming changes, CEEMID again features Google Trend analytics.  We are comparing Google searches on the web and YouTube over time, countries, regions and cities.

Fluctuation of concert searches in countries
The fluctuations of strong and weak month in the Croatian concert market are about 40% compared to the average, more than twice of the Austrian fluctuation.

An important aspect of the relatively week CEE markets is the very strong seasonality aspect.  Ljubjlana, Zagreb, Budapest and Prague are full with life and concerting opportunities in December, but the difference in interest for concerts among peak months and low month can be as much as 40%, about the double of the all-year Viennese market.  Summer festivals obviously alter the picture, but it is essential for tour organizers as well as concert promoters to understand seasonality and to build longer tour seasons in these countries.  Cultural spending is not necessarily low in off-peak season but may be diverted to cinema, theatres or outdoor activities.

We use R program code to retrieve concert, cinema, theatre and other relevant search information from web searches and Youtube.  We produce data that is comparable across the whole CEE region. We make time-series, forecasting, benchmarking and other data analytics applications on the data. The main use is forecasting, because tickets sales are known when searched for and not after sales are reported. The granularity of the data can help to understand seasonality of months, weeks, best time for touring, for cinema scheduling.

Our Google Trend Analytics is included in our private and public reports.  Google Trends is an interesting toy if you use it interactively.  Combined with regular, programmatic data extraction and surveys it is an extremely powerful tool to provide timely forecasts and to give your surveys an extra granularity in time, or down to city level.  For example, combining seasonality analytics with demographic analysis can explain most of the difficulties of market development in the Czech Republic, Croatia, Hungary, Poland or Slovakia.


October updates to the CEEMID databases

New updates were added to our CEEMID data catalog on 16 October.  Apart from new visualizations, we made inroads into economic impact assessment with value-added and employment multipliers.  The biggest advocacy advantage of the music industry is that it has a vast impact on employment. In the CEE region, where the automotive industry is preferred by economic policy makers, we can show that a fraction of the investment into creative industries can create many times bigger employment. Especially among young people who are extremely hit by lack of work experience and a sustainable entry into the European labor markets.

Because multiplier calculations and input-output economics is hard too, and it is a very specialized field, we made all the CEEMID program codes open source.  They will be part of the ROpenGov packages, and will be subject to peer review to avoid potential mistakes and increase usability.

Comparing the demography of live audiences

Live music creates more than a half of musician revenues and account for probably 90% of the music industry jobs.  The ability to play regularly paid concerts is the most important factor in the professional development and financial feasibility of shows.

Comparison of concert demography in 34 European countries and regions.
The lack of high-earning middle aged audiences makes the purchasing power of the CEE concert audience low.

After analyzing the cultural participation schemes of about 60,000 people in Europe we see striking differences in audience demography across Europe. The best live music markets have many visitors in their middle ages when their income level is peaking, and a life-long commitment to participating in music.

We use nationally representative, standardized consumer surveys that can be compared across Europe, and can be compared with 5 yearly EU-mandated research.  We recompile data from different questionnaires in scientific research and business research.  If you follow our method, you not only get proven, best practice market research information but also international comparison, that local pollsters will not offer to you. Our data can be used for benchmarking and as evidence for tariffs.

The Central European markets are characterized by the youngest audiences in Europe. The lack of strong, middle-aged buyers makes the purchasing power on these markets rather weak.  We have made several analysis in Hungary and Slovakia to come up with policies that can help increasing audience sizes up to 40%.

Our surveys can help to understand piracy, home copying and provide evidence for the differences among royalty tariffs.

CEEMP Session: Licensing, how to tackle the value gap and a discussion on licensing initiatives

CEEMID had the honor to participate in the third panel of CEEMP in Warsaw together with Ben McEwen from ICE; Jules Parker from Spotify and Dominic Houston from Netflix, and Chris Butler from Music Sales, who is also the chairperson of ICMP. Our panel was moderated by Nigel Elderton from peermusic, who is also the new chairperson of PRS in the UK.

Jules from Spotify spoke about their new initiative, Spotify for Publishers.  Spotify pays out about 20% of its royalties to publishers.  Because the labels are the bigger stakeholders, they often do not provide the necessary information for work identification in the case of publishers.

Dominic from Netflix is already one of the biggest buyers of music, and I believe that his company’s footprint will just continue growing.  His time buys licenses only 10% of their music from publishers. They mainly use original film music, and to a significant degree, catalogs.

Ben made a presentation about their innovation efforts at ICE digital rights management. Working with some of the largest repertoires represented by PRS, GEMA and STIM, they really offer world class services. Next year they promise to scale services to smaller repertoires, who can immediately benefit from low-cost identification from the cleaned data of these large societies.

Digital gap between household cultural spending and CE / S European music industry revenues in the digital world
Comparing household cultural spending with digital music revenues in Europe’s main regions.

Daniel’s short presentation highlighted the fact that the CEE region’s is much richer in terms of household cultural and recreational spending that it is thought by the music industry, because the music industry is really lagging its Western and Nordic peers in tapping into this pool of money.  There are many reasons for this, all a bit touched upon the other speaker’s issues, and their implementation difficulties n the CEE region, especially different revenue stream breakup, strong collective management and relatively underdeveloped publishing.  The region is about 200% or more below its benchmark in the sales we were talking about in this session.  The conversation will continue in Brussels, Prague, Budapest, Bratislava and Warsaw in the coming weeks.

Value added by music in public performance and home copying: economic theory and empirical applications in tariff setting

This presentation held on the CISAC Good Governance seminar set the basis for the later regional cooperation and the creation of the CEEMID music industry databases.  Collective management organization that represent authors in music, audiovisual and literary fields are under increasing competitive pressure from global buyers such as YouTube, Spotify and Netflix and are increasingly subject to tariff disputes and targets of competition policy.

The presentation was based on various tariff pricing and business development work carried out for the region’s largest CMO in turnover size, Artisjus in Hungary.