Effects Of Piracy In South Africa

1.1 Introduction

We see many new and upcoming music artists trying to promote their music in the street corners of Johannesburg on a daily basis, but somehow they never develop to the level of stardom they had initially set out to reach when they first started out. Before long their cd’s are freely available and selling for far less than expected price and available at every possible street corner and public place, poorly produced and packaged.

There are many factors that are attributed to this but we will be looking mainly at music piracy. The purpose of this research is to explore how music piracy is negatively affecting the careers and development of local independent music artists in Johannesburg.

Music piracy can be described as

As such, it has influenced the socio-political developments in South Africa, playing an important role in engaging the thoughts, opinions and development of society (CGS 1998:11).

Over the years the music industry has been growing at a phenomenal rate. In 1998 the gross turnover of this industry was approximated at R900m per year and offered employment opportunities to 15000 people [a tenth of a percentage of the gross domestic product (GDP)] (CSG 1998:40). Because of the complexities in this industry and the fact that the music artists themselves have little knowledge of the business side of this industry, it has become very complex, elusive and difficult to grasp for the vast majority of music artists and as such they have been robbed of income they would have otherwise received if they had proper knowledge of how this business is done a this new internet and digital

Development of music creators, workers in cultural industries and the state is hampered. Income from the payment of royalties is lost. This may lead to an exodus of talented artists to foreign countries in search of greener pastures where their work is better rewarded. Local artists cultural creativity is devalued and economic development is not sustainable. (World anti-piracy observatory)

2.2 Category 2

The impact of music piracy on cd sales.

The value of South Africa’s music market stood at R2.2 billion in 2012, down from R2.6 billion in 2008. Annual revenue is forecast to remain relatively flat, growing by a CAGR of 0.4% to reach R2.2 billion in 2017. (PwC).

This decline in sales figure is a result of piracy and it is not improving, instead other forms of obtaining music are coming up like music streaming. “Revenues from the retail value of sales are expected to total R811million in 2017, less than half the equivalent revenues in 2008” (pwc). The tackling of music piracy still remains a priority in South Africa.

2.3 Category 3

The impact of music piracy on the morale of new music