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The Environmental and Social Impacts of Digital Music

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The Environmental and Social Impacts of Digital Music DEESD IST-2000-28606 Digital Europe: ebusiness and sustainable development The environmental and social impacts of digital music A case study with EMI Final Report, July 2003 By Volker Türk, Vidhya Alakeson, Michael Kuhndt and Michael Ritthoff This report constitutes part of Deliverable 12 (D12) of the project DEESD – Digital Europe: e- business and sustainable development Project funded by the European Community under the “Information Society Technology” Programme (1998-2002) Digital Europe - Case Study on Digital Music in Co-operation with EMI Table of Contents List of Figures List of Tables List of Boxes 1. READER’S GUIDE....................................................................................................................................... 1 2. BACKGROUND............................................................................................................................................ 2 2.1 DIGITAL EUROPE: EBUSINESS AND SUSTAINABLE DEVELOPMENT ....................................................... 2 2.2 THE EMI GROUP ....................................................................................................................................... 2 2.3 THE EMI CASE STUDY.............................................................................................................................. 2 3. THE ENVIRONMENTAL DIMENSION OF DIGITAL MUSIC.............................................................. 4 3.1 OBJECTIVES AND METHODOLOGY............................................................................................................ 4 3.1.1 Objectives ....................................................................................................................................... 4 3.1.2 Underlying Methodology – the MIPS Concept ........................................................................ 4 3.1.3 Service Unit .................................................................................................................................... 6 3.2 SETTING THE SYSTEM BOUNDARIES........................................................................................................ 8 3.2.1 Scoping............................................................................................................................................ 8 3.2.2 Physical Retail Scenario .............................................................................................................. 9 3.2.3 Online Shopping Scenario......................................................................................................... 11 3.2.4 Digital Delivery Scenario............................................................................................................ 12 3.3 DATA INVENTORY & CALCULATIONS ...................................................................................................... 14 3.3.1 Physical Retailing Scenario....................................................................................................... 14 3.3.2 Online Shopping Scenario......................................................................................................... 20 3.3.3 Digital Delivery Scenario............................................................................................................ 24 3.4 RESULTS................................................................................................................................................... 30 3.4.1 Physical Retail Scenario ............................................................................................................ 30 3.4.2 Online Shopping Scenario......................................................................................................... 31 3.4.3 Digital Delivery Scenario............................................................................................................ 32 3.5 DISCUSSION & CONCLUSION.................................................................................................................. 33 4. THE SOCIAL DIMENSION OF DIGITAL MUSIC................................................................................ 37 4.1 OBJECTIVES ............................................................................................................................................. 37 4.1.1 Methodology................................................................................................................................. 37 4.2 THE SOCIAL LIFE OF MUSIC ..................................................................................................................... 38 4.3 THE EMERGENCE OF DIGITAL MUSIC ...................................................................................................... 39 4.4 ACCESS TO MUSIC ................................................................................................................................... 41 4.5 NEW OPPORTUNITIES FOR CREATIVITY .................................................................................................. 43 4.6 PROMOTING DIVERSITY ........................................................................................................................... 44 4.7 NEW FORMS OF PARTICIPATION.............................................................................................................. 46 4.8 CONCLUSION: CORPORATE SOCIAL INNOVATION.................................................................................. 48 5. FUTURE TRENDS ..................................................................................................................................... 50 5.1.1 Penetration of Broadband Infrastructure Increases.............................................................. 50 5.1.2 Mobile Internet ............................................................................................................................. 51 5.1.3 Internet Access via TV ............................................................................................................... 52 5.1.4 Increasing Portability .................................................................................................................. 53 5.1.5 Market share of CDs decreases............................................................................................... 53 5.1.6 Music Sold as Add-On................................................................................................................ 54 6. RECOMMENDATIONS ............................................................................................................................. 56 REFERENCES ..................................................................................................................................................... 62 i Digital Europe - Case Study on Digital Music in Co-operation with EMI GLOSSARY .......................................................................................................................................................... 65 ii Digital Europe - Case Study on Digital Music in Co-operation with EMI List of Figures Figure 3-1: Generic process flowchart. ..............................................................................................8 Figure 3-2: Process flowchart physical retail scenario................................................................. 10 Figure 3-3: Process flowchart for the online shopping scenario. ............................................... 12 Figure 3-4: Process flowchart of the digital delivery scenario. ................................................... 13 Figure 5-1: Summary overview of future scenarios in the music sector and some of their potential impacts..................................................................................................... 55 Figure 6-1: Similarity of costs and backpacks................................................................................ 57 Figure 6-2: Linking conventional accounting and material flow accounting............................. 57 List of Tables Table 1-1: The structure of the report.................................................................................................1 Table 3-1: Description of the “standard CD”. ................................................................................. 15 Table 3-2: Material and resources inventory for the production of 1 million CDs................... 16 Table 3-3: Average minutes per visitor to top (music) internet sites in November 2001....... 21 Table 3-4: Summary overview of the three highest contributors to total material intensity (abiotic raw materials). ................................................................................... 35 List of Boxes Box 3-1: Material intensity: Production site .................................................................................... 15 Box 3-2: Material intensity: CD production ..................................................................................... 17 Box 3-3: Material intensity: Transport retailer to consumer......................................................... 18 Box 3-4: Material intensity: National Distribution Centre ............................................................. 19 Box 3-5: Material intensity: CD shop ............................................................................................... 19 Box 3-6: Material intensity: Consumers PC + monitor (production) .......................................... 22 Box 3-7: Material intensity: Consumer’s PC + internet usage (use phase) ............................
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