Detica, the business and technology consultancy, today proposes a fresh approach to tackling the digital piracy epidemic that threatens to destroy the entertainment industry. Detica insists that stronger collaboration between Internet Service Providers (ISPs) and the entertainment industry is the only way to make it easier for consumers to download music and films legally whilst providing ‘fair trade’ for artists.

Andy Frost, Director of Media at Detica, says: "We now face a watershed in the entertainment industry. A new generation of technology-savvy consumers increasingly wants access to music, movies, TV shows and games, from PCs, PDAs and smartphones 24 hours a day. They will choose the best service offering available to them to download this content, regardless of whether it is legal or not."

This approach is supported by a report completed recently by Yankee Group — ‘An "everybody wins" strategy for digital content’— that reveals how the threat from digital piracy could lead to the ultimate collapse of the entertainment industry. Research shows that approximately 51% of consumers use illegal digital file sharing as a primary means of obtaining music. This figure presents a major revenue challenge to music labels and film and TV production companies who hold the copyright — and also threatens the system that rewards artists for their creative talents. According to Frost: "Broadband companies and record labels have failed to respond to the needs of consumers and have continued to pursue misguided and unenforceable policies such as threatening disconnection from the Internet. In the face of a mounting piracy crisis, the industry must consider a fresh approach."

Frost continues: "In the last six months we have witnessed the music industry waking up to the opportunity of licensing digital content, whether through ad-funded ‘freemium’ streamed services or subscription-based download models. However, the challenge with all of these models is how to create something that’s actually ‘better than free’since the massive amount of unlicensed digital music traffic will continue without commercial partnerships being developed between ISPs and the major music labels."

Frost does however remain positive that the debate is moving in the right direction: "Both industries now acknowledge that whilst technical solutions do exist to enable ISPs to provide secure models to content owners within their networks, they require significant capital outlay and must deliver returns for shareholders through robust commercial models.

"Our challenge to both industries is to stop the in-fighting through lawyers and start working together to deal with the digital piracy epidemic by creating mutually beneficial business models. Only when this happens will the investment required start to flow into developing the required copyright protection solutions."

Frost concludes: "The music industry is at the crest of a huge piracy wave and must embrace this collaborative approach before the epidemic spreads to other digital growth sectors such as TV, films and gaming. If the music industry gets this right it will prevent its destruction and forge the way ahead in ensuring fairness-for-all in the entertainment world."