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src="http://www.ibisworld.com/common/newsletter/images/TOCtopleft.gif" alt="" /> </td> <td class="WhiteTop"> <img src="http://www.ibisworld.com/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> <td style="width: 5px"> <img src="http://www.ibisworld.com/common/newsletter/images/TOCtopright.gif" alt="" /> </td> </tr> </table> <table border="0" style="width: 354px" cellpadding="0" cellspacing="0"> <tr> <td class="DarkGray"> <img border="0" src="http://www.ibisworld.com/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> <td valign="top"> <table border="0" cellpadding="3" cellspacing="0"> <tr> <td rowspan="8"> <img border="0" src="http://www.ibisworld.com/common/newsletter/images/cp.gif" alt="" height="170" width="1" /> </td> <td colspan="2"> <p class="heading1"> IN THIS EDITION:</p> </td> </tr> <tr> <td width="30" align="center"> <a href="#aIndustry"> <img border="0" src="http://www.ibisworld.com/common/newsletter/images/placeholderarrow.gif" alt="" /></a> </td> <td class="tdToc"> <a class="menuitem" href="#aFeature">Feature Article: Music in the US  Can a Vinyl Revival Save the Music Industry?</a> </td> </tr> <tr> <td align="center"> <a href="#aFocus"> <img border="0" src="http://www.ibisworld.com/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td class="tdToc"> <a class="menuitem" href="#aFocus">Trends: Food Production and Consumption: The China Effect </a> </td> </tr> <tr> <td align="center"> <a href="#aRisk"> <img border="0" src="http://www.ibisworld.com/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td class="tdToc"> <a class="menuitem" href="#aRisk">Risk Analysis</a> </td> </tr> <!--<tr> <td align="center"> <a href="#aEconomic"> <img border="0" src="http://www.ibisworld.com/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td> <a class="menuitem" href="#aEconomic">Economics & Demographics</a> </td> </tr>--> <tr> <td align="center"> <a href="#aEconomic"> <img border="0" src="http://www.ibisworld.com/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td> <a class="menuitem" href="#aEconomic">Economic Scoreboard </a> </td> </tr> <!-- <tr> <td align="center"> <a href="#aRuthven"> <img border="0" src="http://www.ibisworld.com/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td> <a class="menuitem" href="#aUpdated">Phil Ruthven - Presentation Material</a> </td> </tr>--> <tr> <td align="center"> <a href="#aNew"> <img border="0" src="http://www.ibisworld.com/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td> <a class="menuitem" href="#aNew">What's New?</a> </td> </tr> <tr> <td align="center"> <a href="#aUpdated"> <img border="0" src="http://www.ibisworld.com/common/newsletter/images/placeholderarrow.gif" alt="" /> </a> </td> <td> <a class="menuitem" href="#aUpdated">Updated Reports</a> </td> </tr> </table> </td> <td class="DarkGray"> <img src="http://www.ibisworld.com/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> </tr> </table> <table border="0" style="width: 354px" cellpadding="0" cellspacing="0"> <tr> <td style="width: 5px"> <img src="http://www.ibisworld.com/common/newsletter/images/TOCbottomleft.gif" alt="" /> </td> <td class="WhiteBottom"> <img src="http://www.ibisworld.com/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> <td style="width: 5px"> <img src="http://www.ibisworld.com/common/newsletter/images/TOCbottomright.gif" alt="" /> </td> </tr> </table> </td> </tr> </table> </td> <td valign="top"> <table cellpadding="0" cellspacing="0" border="0"> <tr> <td valign="top"> <img src="http://www.ibisworld.com/common/newsletter/images/usdate.gif" alt="" /> </td> </tr> <tr> <td height="10" /> </tr> <tr> <td> <table border="0" style="width: 256px" cellpadding="0" cellspacing="0"> <tr> <td style="width: 5px"> <img src="http://www.ibisworld.com/common/newsletter/images/PinkTOCtopleft.gif" alt="" /> </td> <td class="WhiteTop" style="background-color: #DDCDC6;"> <img src="http://www.ibisworld.com/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> <td style="width: 5px"> <img src="http://www.ibisworld.com/common/newsletter/images/PinkTOCtopright.gif" alt="" /> </td> </tr> </table> <table border="0" style="background-color: #DDCDC6; width: 256px" cellpadding="0" cellspacing="0"> <tr> <td class="DarkGray"> <img src="http://www.ibisworld.com/common/newsletter/images/cp.gif" alt="" height="148" width="1" /> </td> <td height="146" width="308"> <p class="heading1" style="text-align: center;"> DID YOU KNOW?</p> <p class="textCenter"> The recorded music industry has changed phenomenally in the past five years. In 2003, there were around 30 legal download services available; now there are more than 500, enabling consumers to access more than 6 million songs online. </p> </td> <td class="DarkGray"> <img src="http://www.ibisworld.com/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> </tr> </table> <table border="0" style="width: 256px" cellpadding="0" cellspacing="0"> <tr> <td style="width: 5px"> <img src="http://www.ibisworld.com/common/newsletter/images/PinkTOCbottomleft.gif" alt="" /> </td> <td class="WhiteBottom" style="background-color: #DDCDC6;"> <img src="http://www.ibisworld.com/common/newsletter/images/cp.gif" alt="" height="1" width="1" /> </td> <td style="width: 5px"> <img src="http://www.ibisworld.com/common/newsletter/images/PinkTOCbottomright.gif" alt="" /> </td> </tr> </table> </td> </tr> </table> </td> </tr> </table> </td> </tr> </table> <!-- end header--> <table cellpadding="0" cellspacing="0" border="0"> <!-- main content--> <!-- industry in focus article --> <!--<tr> <td> <a id="aIndustry" name="aFeature"></a> <p class="heading2"> <br /> Easter</p> <table border="0" cellpadding="0" cellspacing="0"> <tr> <td valign="top" width="620" align="left"> <p>You know its Easter when the sky greys and, helped by daylight savings, darkens earlier each night. You know it's close when fluffy bunnies and bright yellow chicks start to appear in the windows of high street shops. But most of all you know its Easter when you see brightly covered chocolate eggs and animals, and smell the freshly baked hot cross buns. With Easter now behind us, it is a good time to take a look at the confectionary manufacturing industry. </p> </td> </tr> </table> </td> --> <tr> <td> <a id="a3" name="aFeature"></a> <p class="heading2"> <br /> IN THE NEWS  Music in the US  Can a Vinyl Revival Save the Music Industry?</p> <table border="0" cellpadding="0" cellspacing="0"> <tr> <td valign="top" width="620" align="left"> <p>Everywhere you look, the ominous signs of decline in the music industry appear well and truly upon us. Sales in the <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1253">Music Publishing</a> industry have contracted by more than 10% since 2005, while <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1252">Major Label Music Production</a> has seen a decline of more than 15%. As piracy continues to flourish, illegal downloads now outnumbering legal ones 20 to one, the <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1624">Performing Arts</a> industry is really feeling the crunch. </p><p>CDs remain the dominant format in which consumers purchase music, accounting for more than 80% of all purchases in both the <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1252">Major Label Music Production</a> and <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1251">Independent Label Music Production</a> industries. However, the popularity of customized 'playlists' and corresponding consumer preferences towards the purchase of individual songs has seen the volume of CD sales contract significantly over the past five years. Digital music sales have mitigated some of the loss, growing from 0% of the industry in 2003, to 11.2% last year, though the problem of illegal downloading and peer-to-peer (P2P) file sharing persists. Although yet to be empirically measured, estimates of the cost of illegal downloading on the <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1252">Major Label Music Production</a> industry are as high as $1.4 billion annually. </p><p>Interestingly however, the resurgence of an all-but-extinct music medium  the vinyl LP record  presents an interesting juxtaposition to the industry status quo. Once purely the domain of nostalgic baby-boomers seeking to relive the golden-era of rock, the vinyl market has since broadened. Eager to find a revenue source less susceptible to the threat of illegal downloading, the music industry has recently embraced this vinyl revival. Amongst old school re-issues, the industry has managed to lure the iPod generation with contemporary vinyl releases including the Killers, Bjork, the White Stripes and Ben Harper. </p><p>As a means of saving the flailing music industry, vinyl is unlikely to be the answer, with vinyl sales representing but a fraction of total album sales and about 1% of Major Label <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1252">Major Label Music Production</a> . The resurgence does however highlight an interesting consumer trend. Better sound quality, more elaborate album covers with liner notes, and the experience of sharing music with friends as opposed to plugging into an iPod to listen alone, have been suggested as the impetus driving vinyl sales. The head of the UK's largest vinyl manufacturer and distributor describes the experiential nature of vinyl consumption in elegant terms, "if you want instant coffee, buy a CD; if you want fine wine, buy and LP".</p> </td> </tr> <tr> <td> <p class="ReportSectionTitle"> <br /> Industry reports relating to this article are:</p> <table border="0"> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1253">Music Publishing</a> </td> </tr> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1252">Major Label Music Production</a> </td> </tr> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1624">Performing Arts</a> </td> </tr> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1251">Independent Label Music Production</a> </td> </tr> </table> </td> </tr> </table> </td> </tr> <!--end industry in focus article --> <tr> <!-- company focus article --> <td border="0" cellpadding="0" cellspacing="0"> <a id="aFocus" name="aFocus"></a> <p class="heading2"> <br /> <br /> GLOBAL TRENDS: - Food Production and Consumption: The China Effect </p> <table border="0" cellpadding="0" cellspacing="0"> <tr> <td valign="top" width="620"> <p>Food prices are soaring, wealthier Asian consumers are westernizing their diets, and farmers, let alone the nations of the third world, cannot keep up the pace. With the world population set to hit 9 billion by 2050, the urgency for another Green Revolution is becoming more and more pressing. </p><p>According to the UN, global food prices rose 35% last year, noticeably accelerating an upturn that began in 2002. To date however, prices have risen by 65%, bringing much needed attention to the crisis facing world food production and consumption. According to the UN Food and Agriculture Organisation's world food index, dairy prices rose nearly 80% in 2007 alone, while grain prices rose by 42%. </p><p>What is interesting about these statistics, secondary to the alarming prospect of food availability that they imply, is their divergent trend. The phenomenal growth in dairy prices, that are nearly double that of grain, illustrate the impact of changing Asian diets on global demand. The emergence of China's middle class has massively increased demand for not only basic commodities, but also high protein foods, such as meat and dairy products, as well as luxury processed products, like soft drinks and chocolate and confectionery. </p><p>The past five years have seen rapid growth in the contribution of Asian nations to the <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=335">Global Fluid and Powdered Milk Manufacturing</a> industry, which now account for more than 30% of production, while China alone accounts for more than 10% of <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=357">Global Fruit and Vegetable Processing and Preserving</a> industry production and consumption. The trend is similarly evident in industries such as <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=420">Soft Drink and Bottled Water Manufacturing</a>, as well as <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=359">Global Cocoa, Chocolate and sugar Confectionery Manufacturing</a>, forecast to grow by 5.7% and 10.0% respectively during 2008 in response to soaring demand in China and Southeast Asian markets. </p> </td> <tr> <td> <p class="ReportSectionTitle"> <br /> Industry reports relating to this article are:</p> <table border="0"> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=335">Global Fluid and Powdered Milk Manufacturing</a> </td> </tr> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=357">Global Fruit and Vegetable Processing and Preserving</a> </td> </tr> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=420">Soft Drink and Bottled Water Manufacturing</a> </td> </tr> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=720">Pharmaceuticals and Medicine Manufacturing</a> </td> </tr> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com.au/redirect.aspx?partnerid=news&type=global&indid=359">Global Cocoa, Chocolate and sugar Confectionery Manufacturing</a> </td> </tr> </table> </td> </tr> </table> </td> </tr> <!--end industry focus article --> <tr> <td> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td> <a id="a5" name="aRisk" class=""></a> <p class="heading2"> <br>Lights, Camera, Action! IBISWorld Goes to the Movies. </p> </td> </tr> <tr> <td valign="top" width="620"> <p>As we enter May and the start of Summer, it follows that all the Summer blockbuster movies will be upon us as we approach the Memorial Day weekend. Paramount Pictures' Iron Man, based on the Marvel comic book, has already set the bar high with a $98.6 million opening weekend in the US and Canada at the start of the month. Other May movies expecting big openings include Walt Disney Pictures' The Chronicles of Narnia: Prince Caspian, opening May 16; and the return of Harrison Ford in his signature role in Indiana Jones and the Kingdom of the Crystal Skull on May 22. </p><p>Studio profits have come under increased strain in recent years. The impact of internet file-sharing, which now often leaks movies online before the official opening date, is the most oft-cited influence. However, it should be remembered that other media, such as videogames, are increasingly competing for the same demographic as cinema. IBISWorld analysis indicates that the <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1243">Movie & Video Distribution</a> industry faces a MEDIUM-LOW level of risk over 2008, though economic conditions are expected to contribute to slower revenue growth of 2.1% (compared to 3.9% in 2007). </p><p>Though distributors have a number of avenues through which to pursue business, the <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1244">Movie Theaters</a> industry is more exposed to economic headwinds. In particular, expectations of slow growth in per capita disposable income over 2008, due to a weak labor market and strong inflationary pressures (most obviously in the form of gas and food prices), are seen as increasing the level of risk in this industry's business environment. IBISWorld rates movie theaters as having a HIGH level of risk throughout 2008, and anticipate a revenue contraction of 1.6% for the year. </p><p>Below is an outline of the historical and forecast risk score of the above mentioned industries. These can be compared to overall risk for the US economy. </p> <table border="0" cellpadding="0" cellspacing="0" class="tbl"> <tr> <td width="" class="tbcDarkGreen"> <strong>Industry Name</strong> </td> <td width="" class="tbcLightGreen"> <strong>2004</strong> </td> <td width="" class="tbcLightGreen"> <strong>2005</strong> </td> <td width="" class="tbcLightGreen"> <strong>2006</strong> </td> <td width="" class="tbcLightGreen"> <strong>2007</strong> </td> <td width="" class="tbcLightGreen"> <strong>2008</strong> </td> </tr> <tr> <td class="tbcMidGreen-leftalign"> <strong>Movie & Video Distribution</strong> </td> <td class="tbcWhiteLeftAlign"> 4.02 </td> <td class="tbcWhiteLeftAlign"> 5.37 </td> <td class="tbcWhiteLeftAlign"> 4.78 </td> <td class="tbcWhiteLeftAlign"> 5.24 </td> <td class="tbcWhiteLeftAlign"> 4.63 </td> </tr> <tr> <td class="tbcMidGreen-leftalign"> <strong>Movie Theaters</strong> </td> <td class="tbcWhiteLeftAlign"> 4.83 </td> <td class="tbcWhiteLeftAlign"> 6.73 </td> <td class="tbcWhiteLeftAlign"> 6.35 </td> <td class="tbcWhiteLeftAlign"> 5.88 </td> <td class="tbcWhiteLeftAlign"> 6.79 </td> </tr> <tr> <td class="tbcMidGreen-leftalign"> <strong>US Economy</strong> </td> <td class="tbcWhiteLeftAlign"> 4.56 </td> <td class="tbcWhiteLeftAlign"> 5.01 </td> <td class="tbcWhiteLeftAlign"> 4.97 </td> <td class="tbcWhiteLeftAlign"> 4.97 </td> <td class="tbcWhiteLeftAlign"> 4.99 </td> </tr> </table> <tr> <td> <p class="ReportSectionTitle"> <br /> <br /> Industry reports relating to this article are:</p> <table border="0"> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1243">Movie & Video Distribution</a> </td> </tr> <tr> <td width="30" align="center"> <img src="http://www.ibisworld.com/common/newsletter/images/documenticon.gif" alt="" /> </td> <td> <a href="http://www.ibisworld.com/redirect.aspx?partnerid=News&indid=1244">Movie Theaters</a> </td> </tr> </table> </td> </tr> </td> </tr> </table> </td> </tr> <!-- end industry risk article --> <!--end industry focus article --> <tr> <!-- economics article --> <td> <a id="aEconomic" name="aEconomic" class=""></a> <!-- <table border="0" cellspacing="0" cellpadding="0"> <tr> <td> <a id="aEconomic" name="aEconomic" class=""></a> <p class="heading2"> <br /> <br /> Economics and Demographics: Exchange Rates ? Australian dollar vs US dollar. </p> </td> </tr> </table> <table border="0" cellpadding="0" cellspacing="0"> <tr> <td width="620"> <p> Over the second half of FY2005-06, the <a href="http://www.ibisworld.com/bed/retail.aspx?bedid=90"> Australian dollar</a> continued to fluctuate around the US$0.75 mark. The Aussie fell to a low of US$0.7021 in late March, but recovered to a high of US$0.7692 in mid-May. The Australian unit ended the financial year slightly below the annual average of US$0.7572. At the end of June, the Australian dollar was buying US$0.7433. </p> <p> The Australian dollar has been appreciating against the US dollar since its lows in 2001. The combination of low US interest rates, which created a large interest rate differential, and the commodity boom that has boosted demand for the Australian dollar. </p> <p> In the second quarter of 2006 the <a href="http://www.ibisworld.com/bed/retail.aspx?bedid=383"> Australian Consumer Price Index (CPI)</a> rose by 1.6%. This pushed the headline inflation rate up to 4% and the underlying inflation rate to 3% (the upper end of the Australian Reserve Bank's target range). In the US, consumer inflation slowed sharply in July and increased only 0.2% in August ? a reduction of half from the July figure. </p> <p> Easing inflationary pressures are evidence of a slowing US economy. With Australian inflation growing a higher rate than the US, interest rate changes will help determine the exchange rate. In August, the Reserve bank in Australia increased <a href="http://www.ibisworld.com/bed/retail.aspx?bedid=2610"> interest rates</a> to 6% and put Australia on inflation rate alert. When the US Fed met in August, they left rates unchanged in light of recent consumer prices and seem unlikely to increase rates when they meet again in September. IBISWorld forecasts that the Australian dollar will slowly devalue over the next year period. For the five year outlook the Australian dollar is estimated to buy on average US$0.65. </p> </td> </tr> </table>--> <table border="0" cellspacing="0" cellpadding="0"> <tr>