Cd-rs Blamed As Piracy In U.k. Rises 40%

The latest figures from the British Phonographic Industry (BPI) show a dramatic rise in illegal music sales in the U.K. According to estimates released April 25 by the BPI, nearly 4 million pirate recordings were sold in the U.K. during 2000, with a total retail value of 20.5 million pounds ($29.5 million)—up 40% over 1999.

The introduction of CD-Rs in the U.K. has been a key factor in piracy's rise, says David Martin, director of the Anti-Piracy Unit (APU) at the BPI.

Martin says the arrival of widespread, affordable, CD-R technology has reinvented piracy as a cottage industry. "Today, for 600 or 700 pounds [$860-$1000], anyone can go down to a local electrical store, set themselves up with a computer and CD writer, and make their own CDs."

The majority of counterfeit CDs now are home-copied CD-Rs, Martin tells Billboard. The use of CD-Rs accounted for a staggering 150% rise in counterfeit CDs sold in the U.K. during 2000, claims the BPI, to just under 2.9 million units. Another 900,000 CDs were pirated using other methods, and more than 100,000 illegal cassettes were also sold. The BPI figures are based on actual seizures and reported levels of piracy; despite the increase, the U.K.'s total level of piracy remains under 2%, Martin says.

Unlike some other European countries—notably Germany and France—the U.K. does not apply a levy to blank recording media to compensate the music industry for revenue lost to home recording. Some industry observers have suggested that such a levy may actually encourage home recording, by appearing to legitimize the activity.

Martin points out that in Germany, the value of sales during 2000 fell by 1.2% year-on-year in local currency terms, according to International Federation of the Phonographic Industry (IFPI) figures. German trade bodies claim that CD-R activity has contributed substantially to that decline (Billboard, April 28).

In the U.K., however, with no levy, the value of recorded music sales actually rose by 3.8%. Legitimate sales for recorded music in the U.K. in 2000 totaled $2.83 billion, according to IFPI figures released April 19.

Some good news for the U.K. industry comes from of an estimated 60% fall in the sales of bootleg CDs—recordings of live performances made without artists' permission—to 86,400 units, a drop that Martin attributes partly to the cannibalization of that market by CD-R operators.

Martin says, "Although CD-Rs have been a boon to counterfeiters, they've actually deterred bootleg dealers. Every time they bring out a new bootleg album, it's being instantly copied by their competitors. Ironically, the technology's actually helped our cause."