Dear Frank Riester,Ladies and Gentlemen,
I am particularly pleased to welcome you today for the
music card launch.
This is the result of one of the report’s main proposals:
«Creation and the Internet» that Patrick gave me at the beginning of the year
Zelnik, Guillaume Cerutti and Jacques Toubon. This measure had been, you
announced by the President of the Republic during his vows to the
This virtual card, 50% subsidized by the State, allows
Today, Internet users aged 12 to 25 can access the
online music on the legal platforms of their choice, for a
up to 50 euros.
The music card is «twice as much music» thanks to the help of
the State. This is even more, given the very attractive offers of
different platforms. Besides the gain for the beneficiary, it is also a
great opportunity for the development of online music, and
excellent news for creation.
First of all, I would like to commend the unwavering
stakeholders in this project - from service publishers to
online music, rights holders, technical service providers or
Administrative Services - Laurence’s CMIB
I do not underestimate the efforts, the determination, the optimism of the
will» one might say, which were necessary to cross one by one
the many administrative, technical, budgetary and
I would like to remind you that the European
obtained just 15 days ago: it is thanks to a real tour of
We have been able to finalise the system within this period.
In particular, I would like to pay tribute to
line, be it the download or playback platforms in
electronic communications operators offering continuous
offers online music or distributors. They brought, I have
awareness, considerable support for the preparation of this project,
technical as well as editorial.
As of today, for the start of the operation, there are 14 offers
which will be available at www.carte-musique.gouv.fr, among
key players and a significant diversity of
types of offers, genres and directories and consumption patterns:
Amazon, CD1D, Deezer, Online Record Shop, eCompil, FNAC, iTunes,
Musicme, Myclubbing Store, MySurround, Orange, Qobuz, Starzik, Virgin
Mega. Given the very tight deadlines imposed on the platforms,
many of them like Allo Music, Musicovery, Nokia, Spotify,
7 Digital, SFR, VivendiMe, Yozik and Zaoza will not join us
later, in the coming weeks or by the end of the year.
I wish, more broadly, to acknowledge the spectacular cohesion that has existed
within the music industry around this project. The solidarity of
publishers and professionals in the music industry is an asset
for the success of the operation. It proves the consensus that
currently exists among all players in the music industry around
the need to disseminate the use of online services.
How does the device work?
The website of the music map www.carte-musique.gouv.fr is both the
window of the operation and its point of entry. It
registration form and get codes to buy music
on partner platforms, which are all referenced on the site.
Once registered, the user selects the amount he wants to invest (5
euros, 10 euros or 25 euros), knowing that the value of its first ticket
is automatically doubled by the grant. The total tickets cannot
exceed 25 euros. The user then selects the platform he
prefers to use, and on which he will make his payment. Equipped with a code
activation that it will transfer to the platform or platforms of its choice, it may
then access the offer corresponding to the amount selected.
This system of tickets allows the young person who wishes to «test»
multiple platforms. The subscriber who chooses for example a ticket to
five euros on a given platform can then discover the offer to 10
€5 from five other platforms: this leverage encourages users to go
discover different offers, in all their diversity.
The music card is intended for a number of potential beneficiaries
up to one million per year among the population aged 12-25. Aid
being limited in its amount and duration, the principle will be that of
first-come, first-served” for aid recipients. There is
no selection process, except for eligibility verification, which
is based on the date of birth.
All this is of a simplicity which will not escape the recipients of the
music card: those are, more than us, familiar browsers and
agile in the digital world.
Before answering your questions, I would like to remind you of the reasons
which led me to support this proposal from the outset, to fight -
because it had to be very combative - for it to be implemented.
To do this, we must start from the observation of the mission «Creation and Internet»,
that I quote: if two thirds of Internet users say they know the existence
legal online music services, the number of those who use them
However, the number of
of legally downloaded titles is still 20 times lower than the
securities traded illegally. At the same time, two-thirds of
users who download illegally say they are ready to use the
legal services if they were cheaper.”
This is the observation from which the music card was conceived. Its
idea is to actively participate in the development of
legal consumption of online music, in addition to
the pedagogical and preventive approach implemented by HADOPI. The
music card and HADOPI participate in a single process that
aims to change the behaviour of the largest number of Internet users and
the fragile eco-system of creation. I therefore welcome the
successful start of the graduated response and ramp-up of
the High Authority’s action to encourage supply development
The idea of free and open access to online music, through
illegal downloading, has imposed itself in the minds, especially of
young consumers. This situation is not satisfactory: it
neither preserves the conditions for the diversity of the musical offer, nor
pay rights holders in conditions that can ensure the
the renewal of musical creation and talent. By
young people, the music card aims to create new habits, to
generate a reflex: go to the side of the legal offer, and discover that it
can be very varied and all the more attractive as prices are attractive
for low budgets and easy and enjoyable platforms
use. Youth is a great training engine
for all digital practices: if young people adopt platforms,
I think the game will be won for online music.
The music card also helps to raise awareness of diversity
offers from online music publishers: diversity of music styles
available music (jazz, variety and pop, world music, classical),
editorial offerings, labels and performers, and
available packages - subscriptions, streaming or fee-for-service purchases,
listening on a fixed or mobile device. If it is necessary to preserve and
encourage this diversity because it is a source of
economic and cultural perspectives. That is why
we have limited the maximum amount to 20% of total aid
platform. The purpose of this ceiling is to ensure that
among the economic actors involved, a pluralism that will prove to be one
the essential conditions for the success of the legal offer.
I would also like to stress the particularly targeted and
of this system, which is a perfect fit for the budgetary effort of
the State while allowing, through the contribution of the various partners of the
to have a substantial leverage effect on the development of the
online music market.
The measure, as you have understood, is targeted at a narrow age group
(12-25 years) selected on specific elements. Sociological studies
show that tastes are formed at the age of 12
and that the behaviour of music consumption in
line. It is also known that 12-18 year-olds are considered the
online music market engine category, category 15-24
years having a practice of digital recreation much more
important than the rest of the population.
In the same way, the unit amount of aid (maximum €25 per
youth) has been calibrated as thinly as possible, taking into account the
purchasing power of the target age group and incentive effect
discounted. When two-thirds of Internet users who download
illegally claim to be willing to use legal services if they were less
price is often around 5 to 7 euros per
month for a monthly subscription with listening option
unlimited number of titles. Thanks to the music card, users
may, for example, have access to five months of this type of subscription.
Finally, it is fundamental to note that the State is not the only contributor
the device. Online music service publishers and assigns
costs of the operation, to
of 20%. To this end, the decree introduces an eligibility criterion
aimed at ensuring that service providers offer
specifically dedicated to the «Carte musique jeune» operation.
This offer should highlight its distinctive attractiveness - lower prices,
longer subscription period for subscription services.
By combining the contributions of the various stakeholders, the
I am convinced that this device has all the necessary potential
to trigger a virtuous dynamic, both for health
economic impact of the entire sector (platforms, producers,
artists) and for the quality of the offer for young consumers. For
State aid of €25 million, a total of €50 million from the outset
feed the industry, without counting the ripple effect that will be
A figure to be compared at the level of the music market in
line which, I remind you, represented in 2009 some 74 M€. This is indeed
to give a French market legal consumption of music
online a salutary electroshock.
I do not need to remind you of the crisis
the music industry and its impact on the diversity of production
music content and talent renewal. We know that
production figures for new talent remain extremely high
last year, for the second year in a row, the
number of new signatures does not offset the number of
artists' contracts that were terminated. We also know that since
2003, the number of new talent “hired” by
French records fell by 47%. It is therefore urgent that the
a viable economic model, one that
necessarily through digital consumption.
Despite strong growth, the immaturity of the digital market
still hampers the development of viable economic models, failing
a sufficient number of consumers. I remind you that the
digital business in the overall music turnover
only 10% in France, which is very low
compared to several other European countries or the United States – where this
share is around 40%. We need and can
significantly increase this share, by ensuring that the
Digital technology is a real growth driver for the industry
music. By giving young Internet users a purchasing power
additional, the purpose of the music card is precisely to
allow service publishers and industrialists to finally enter a
virtuous circle where the volume of legal consumption online
will enable a model to be found more or less soon
that ensures their sustainability.
The music card is, for all these reasons, one of the measures
essential to the support and accompaniment plan for the music sector
towards the digital I am implementing.
But my action goes beyond: other important reforms are
in parallel. Some of these will soon lead to
can be assured. However, I have a habit of not
projects that have not yet reached maturity. I
I shall therefore be content with a few indications.
First of all, I’ve engaged my colleague Christine.
Lagarde the steps necessary for strengthening, up to 10
million, from the Fund’s means of advances to the musical industries
managed by IFCIC. This fund dedicated to SMEs in the music sector has shown
its relevance and effectiveness: the need to strengthen it in the context
I do not think there is any debate. I can tell you that the principle
It is now time to settle the terms of the agreement, I hope
a short time.
I have also defended the
Upgrading the Production Tax Credit
phonographic. Contrary to what I would have liked, this
cannot be effective under the Finance Act
initial for 2011 given the efforts required by the situation
our country’s budget. However, I will continue to defend it with
insistence. I remain convinced that, while
very modest tax expenditure, it remains promising and even indispensable
the development of independent labels, which are the most vulnerable by
the crisis in the sector.
Regarding the mediation entrusted to Emmanuel Hoog on the management
of online music rights, I would say today only few
things, because the last day of the
however, I would like to point out that this is a
absolutely crucial issue for the final launch of musical services
attractive online that can be engines of growth of the
music market. The current operating mode cannot be
no case be maintained: it is incompatible with the development of a
and diversified supply, guaranteeing the financing of creation and
cultural diversity. Failure is therefore not allowed and I call by
everyone to take responsibility, all his
responsibilities, so that answers can be found very quickly
concrete. It is a pressing need and I want to
renew to Emmanuel HOOG all my confidence and my full support
so that he may succeed in the mediation mission I have entrusted to him.
As you can see, we are not quite at the end of the
Creation and Internet cycle. The time has not yet come to
But rest assured that there will be one.
Like other sectors of the cultural industries such as film or
the book, the music industry deserves to be considered globally. It
It is no longer possible to treat creators and
producers of phonograms, producers of shows,
publishers and distributors. New ideas, ideas and
new projects, new forms of support must therefore be
considered for the future of the music industry - giving us time,
taking a step back from the emergency.
I feel like we’re all ready for it. I think I’ll soon have,
the opportunity to talk about it again. But for the time being, it’s time for music.