To raise awareness of professional groups of creators, artists, producers, managers and record label employees in terms of digital distribution of music and the use of its promotional and sales potential (including EU’s external trade) Erasmus Project

Project Title

To raise awareness of professional groups of creators, artists, producers, managers and record label employees in terms of digital distribution of music and the use of its promotional and sales potential (including EU’s external trade)

Project Key Action

This project related with these key action: Cooperation for innovation and the exchange of good practices

Project Action Type

This project related with this action type : Strategic Partnerships for vocational education and training

Project Call Year

This project’s Call Year is 2019

Project Topics

This project is related with these Project Topics: Creativity and culture; Open and distance learning; Research and innovation

Project Summary

The Project is a response to the problem defined by the Applicant involving the lack of educated staff in the EU in the field of digital music distribution, which appeared when physical sales of music were superseded by digital sales (according to the International Federation of the Phonographic Industry (IFPI) data, the share of worldwide digital music sales is over 54% of total sales). This change has resulted in a shortage of people in Europe with the knowledge and skills to be able to compete effectively with entities, among others, from the United States, where authors, artists, producers, managers and employees of music record companies were more likely to adapt to the new realities thanks to faster implementation of changes. However, in the EU, knowledge and experience in digital distribution are still insufficient.

The Project consists of carrying out detailed research on the knowledge of authors, artists, music producers, managers and employees of music record companies about the mechanisms of digital distribution of music, defining areas where this knowledge is insufficient, preparing educational materials adapted to the studied levels of knowledge, as well as developing optimal ways of their distribution and their dissemination in the industry.

In the context of the Project, it is very important that digital distribution of music is becoming an increasingly important sales channel for music. According to IFPI reports, in 2015, the value of digital sales in Poland, Germany, France and the UK amounted to USD 14.4 million, USD 319.9 million, USD 209.6 million, and USD 494,1 million respectively, which represented 16.5%, 26.95%, 25.2%, 43,55% of all music sales in the particular territory, respectively. In comparison, in 2017, the value of sales in Poland, Germany, France and the UK was 24.4 million USD, 471.6 million USD, 317 million USD, 651,5 million USD, respectively, which represented 23.57%, 35.64%, 34.26%, 49,7% of all music sales in the particular territory, respectively. This represents an increase in the share of digital music sales to total music sales by 30% in Poland, 24.38% in Germany, 26.44% in France and 12,37% in the UK over two years. According to the market trend, in a few years digital sales can completely (or almost completely) replace physical sales of music. It is reasonable, however, to aim at increasing the share of the music from the European market in these sales to its maximum extent.

That is why it is so important to improve the knowledge and skills of music market participants in using the potential of this form of music sales. Without adequate knowledge of the mechanics of the market, many promotional opportunities can be missed and much of the revenue can go to more organised right holders from across the ocean, where digital sales are at 75% of total music sales (IFPI report 2017).

The Project relates to independent entities from the territory of the EU, by which the Applicant means natural or legal persons who do not hold more than a 5% share in the global music market. It is the most difficult for such market participants, unlike global players such as Universal, Sony Music or Warner Music, to obtain appropriate knowledge and competencies. The Project will have at least 100 participants, selected from among the entities described above. However, access to the materials prepared during the Project will be unlimited.

The Project will involve research with the use of questionnaire methodology. After the research and definition of knowledge and areas where it is insufficient, a “Guide to digital music distribution” as well as an e-learning module will be prepared. Dissemination of knowledge will take the form of a series of dedicated conferences and of the e-learning platform. It will also take place at numerous music fairs attended by the Applicant Organisation and Partners and as part of cooperation with other music market operators (especially collective rights management organisations and organisations associating independent market participants – such as the Alliance of Independent Music Companies in Poland or IMPALA on a pan-European level).

The expected result of the Project is to increase the awareness of music market participants in the field of digital distribution and increase practical skills in the use of tools available on the market in order to better promote, reach listeners and thus increase sales effectiveness.

EU Grant (Eur)

Funding of the project from EU: 248405 Eur

Project Coordinator

Independent Digital & Country: PL

Project Partners

• Nagel-Heyer Records
• BV Trade Ltd
• HV.COM INTERNATIONAL S.A.
• LEPM
• THE UNIVERSITY OF WESTMINSTER LBG
• Association Glukoz