It's all about the music. While the file-sharing debate races on, Swedes seem to care more about the actual music than the means of getting a hold of it. Photo: Jan Collsiöö/Scanpix

Paradoxically, it may be the habitual downloading of music by Swedish users that has led to the development of these new, legal services.   
 
Although the figures vary considerably between age groups, one Swede in ten engages in file-sharing. Not surprisingly, young Swedes top the list — one in three aged 16-24 has used file-sharing software to exchange films or music. (Young men are slightly more active in this respect than young women, who on the other hand blog twice as much as young men.) The figures are taken from a study by Statistics Sweden* published in December 2008 that clearly shows how large sections of Swedish society regard file-sharing as perfectly all right.

This has created problems for politicians, artists, record companies and to some extent for private individuals as well. Is it acceptable to engage in file-sharing when everyone else does, or is one Swede in ten quite simply a criminal? How are artists to be paid for their work and how should new technology be applied so that everyone is content?

Politicians’ opinions vary, as do artists’ opinions, even the opinions of private citizens. The only ones who stand more or less united are the big record companies, that are keen to see stronger measures against file sharers. Some small record companies, however, seek other solutions.

Record companies with an eye for new possibilities

The Swedish Model is the name of a group of seven small record companies who have chosen a different approach to that of the big companies.

Martin Thörnkvist, one of the founders, says: “We still make most of our money from selling records and from having our stuff played on the radio. Yet we don’t see music downloads as competition but as a complement.”

Thörnkvist argues that if consumers choose to download music illegally, there is something wrong with the record companies’ business model, not with the consumers’ behaviour.

Martin Thörnkvist of the Swedish Model chooses to see file-sharing as a business opportunity rather than a threat. Photo: Jesper Berg

However, the Swedish branch of the International Federation of the Phonographic Industry (IFPI), which represents the big record companies, is not amused by Swedes’ fondness for downloading music. 

Ludvig Werner, who chairs the IFPI organization in Sweden, says: “We’ve realized that Sweden has been late in introducing legislation in this field, while at the same time we’re good at computers. The conditions are pretty good for raising a generation that is used to having free internet content.”

Pirates versus entrepreneurs

Werner says Sweden has acquired a reputation as a pirate haven, due largely to the fact that three Swedes are responsible for one of the largest file-sharing websites in the world — The Pirate Bay. Ever since it was launched five years ago, the site has been a thorn in the side of the record and film industry, and it has also been at the centre of the Swedish debate on file-sharing ever since police confiscated its computer servers in 2006.

As vilified as Pirate Bay is by some, Spotify is equally appreciated by most. Spotify is a new Swedish service that gives users access to music from many of the world’s largest record companies, via a special music player. The music is not downloaded but simply streamed directly from Spotify each time it is played. The service is legal and there is a free version that carries advertising.

“Spotify is one of the reasons we started The Swedish Model,” Thörnkvist says. “It might not be around for ever but it’s services like these that we can earn money from in the future.”

Werner at IFPI is also in favor. From his point of view, Spotify and other online music services point the way to legal alternatives that are better than the illegal ones.

Pirate Bay is considered the world’s largest BitTorrent tracker site. But do its users actually feel like pirates? Photo: Thomas Persson/Scanpix

But is it simply a coincidence that the leading forum world-wide for illegal file-sharing and a number of successful legal services such as Spotify were developed in Sweden? Werner believes there is a link.

“Naturally, people have learnt from the alternatives available to them,” he says. “I’m quite sure a learning process has been involved here.”

Will new laws equal new behavior?

In late February, the Swedish Riksdag (parliament) passed a law that gives copyright holders a new chance to stop illegal file-sharing. As of April 1, 2009, record companies and others will be able to ask for the identity of the person behind an IP address used for file-sharing, so that they can then warn or sue him or her. Previously, only the Swedish police were empowered to identify file-sharers, and critics argue that the new law represents a threat to personal privacy.

New Swedish research in this area gives an idea of how people in Sweden will react. Lund University, one of the largest in Sweden, has surveyed opinion among the country’s 15-25-year-olds. All of 75 percent felt that the illegality of sharing copyrighted material was not reason enough in itself to refrain from this practice. And almost as many stated that tougher legislation would not prevent them from sharing copyrighted files in the future.

Whether and how Swedish attitudes toward music on the internet will change, and how this in turn will affect the music industry, will become apparent when the law enters into force.

*Statistics Sweden is an administrative agency which, among other things, supports and coordinates the Swedish system for official statistics.

This article is also available in:
French 

Fredrik Andersson

Fredrik Andersson is a freelance journalist based in Stockholm. He has a degree in both business economics and journalism and has worked mainly at the two public service broadcasters, Sveriges Television and Sveriges Radio, and also at TV4.

The author alone is responsible for the opinions expressed in this article.

Translated by Stephen Croall

Classification: A290EN