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Canadian Recording Industry Claims Drop in Sales

tyrann98 writes: "The Globe and Mail reports that the Canadian record industry has experienced a 6.4% drop in CDs and cassettes overall (not singles) in the last year - plus a 7% drop in the first four months of this year. They don't know who is to blame, but they have their fingers pointed at you guessed it: Napster. Canadians are one of the world's most connected societies (mainly due to cheap high speed Internet access) and may reflect the direction the Internet is headed. "And indeed they are. Canadians have embraced the practice of downloading songs from the Internet faster and more intensely than most other countries. The surveys show nearly six in 10 of those between the ages of 18 and 34 go to their computers rather than a record shop to acquire songs. There are as many as five million Napster users who sign on to the Web site an average 6.3 days a month. It's about twice the reach the Web site has in the United States.""

8 of 259 comments (clear)

  1. Jamaican musicians still make lots of dough. by Forge · · Score: 5

    Around here you have studios sprouting like mushrooms. Any DJ with a moderately successful single can build one and many do. We have the same IP laws as the US but vary rarely bother to enforce them.

    This isn't about Napster and pear to peer either. It's about dance mixes. Essentially you have a cassette produced by taping the output at a party or nightclub. This is marketed as a mix by selector Bar or sound system Foo. The actual artists are not mentioned and most people can't keep track of who is involved. I.e. It's not uncommon to have parts of 20 songs on the same rhythm played in a 6 minute period. that's just a few seconds each.

    How dose this affect artistes? They do not make 1% of what the major hit makers do in the US. In dead they make far more than 1%. At 2.7 Million Jamaica has 1% of America's population (pending the census which starts this summer). BTW: "jedi as religion" probably won't work in a country with less than 1% Atheist and Agnostic combined.

    You see people even buy large volumes of Vinyl still. We make copies of everything. We pirate music like there was no tomorrow. the end result is that the typical Jamaican spends a whole lot of money in music shops buying original songs.

    we also tend to judge music on it's own merit. This way Steven Segal's Reggae album (Yes, The actor) is a monumental flop. We like the guy (despite "Marked for Death") and give him good reason to love coming here but troth be told his singing isn't that good and his songs don't sell.

    By contrast Buju Banton had a number one hit before anyone knew or cared who he was. All this without any real marketing.

    What's the point? If the Music industry in North America was as deep in the society as it is in Jamaica more people would take the time to randomly listen to vast numbers of new artists. Publishers would be less able to actually make people buy pore songs and little independents who produce good stuff would have a chance.

    the problem is Americans (and Canadians too) mostly just buy what the marketing people tell them to buy and when money isn't available they pirate it. here we pirate everything and then buy the stuff we actually like.

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  2. Remember that a statistician... by MotoMannequin · · Score: 5

    can drown in a river that averages 12 inches deep.

    A look at RIAA sales statistics 1991-1999 reveals that CD sales do not always increase. The data shows growth in the early '90s, but nearly flat sales in the mid '90s, actually decreasing from 96-97.

    As a music fan, I attirbute this (pre-Napster craze) trend to the explosion of new, unique bands in the early '90s, followed by a bunch of bland, industry-generated, me-too bands that lacked any originality or edge.

    With Napster, record company executives now have a scapegoat for thier ineptness. They want to paint the picture of always increasing sales and profits, else someone surely is tampering illegally with thier industry.

    Now consider that retail sales are down in many industries this year, and it looks like the record industry is trying to get a good PR spin on the combination of incompetence and a down market.


    MotoMannequin

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    MotoMannequin
    "With all appliances, and means to boot!" - William Shakespeare
  3. Copyright tax? by sqlrob · · Score: 5

    What I want to know, is how much of this is due to the "tax" on blank media? How many people, seeing this tax, now feel they have paid for the privilege to download the music?

  4. Re:Dont think napster is to blaim... by kryptkpr · · Score: 5

    That same CD, upon coming to Canada, gets marked as an "Import" and suddenly becomes $40CDN (~$25+ USD). Add to that our amazing 15% sales tax (Ontario), and they're wondering why we choose to download music from the net, as opposed to paying OUTRAGEOUS prices for it?

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    DJ kRYPT's Free MP3s!
  5. Dont think napster is to blaim... by boaworm · · Score: 5
    A spokesman of the record business in Sweden said a few weeks ago something like this :

    We have seen a 5 % drop in sales, it must be Napsters fault, so we must raise the price to compensate for the loss.

    This is absurd.. why do they think people care to search and download music from the net ? Because its expensive! Here (.se), a full cd costs something like 170 SEK, (17 USD). If the raise the price more, its even more profitable to download the music, and they have to raise prices even more.

    If a CD cost like 5 USD, i doubt piracy would be an issue anylonger. Napster didnt create the need, the need created napster !

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    Probable impossibilities are to be preferred to improbable possibilities.
    Aristotele
  6. 5% is usually considered a margain of error by dropdead · · Score: 5

    After years of growth they complain when sales growth is not as large as the year before. The record companies need to relize at some point the twelve year girls can only by so many pop albums and angry teenage boys get bored of the same rap/rock sound.

    Growth and increasing profits are not a right. A free economy raises and falls. Maybe all those MBA's should take take first year economics over again.

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    By definition, a government has no conscience. Sometimes it has a policy, but nothing more. - Albert Camus
  7. Blame RIAA, not Canada by Hooky1963 · · Score: 5
    Not that I'm sort of idealist/anarchist but the whole RIAA/MPAA crap has turned me off a lot. I used to go to the HMVs and Tower Records here in Toronto and buy at least 5-6 CDs per month.

    Their lawsuits and their paranoia has rubbed me the wrong way. So I personally send the companies a message that they will hear, by not buying their products.

    I've never used napster but I have fished for mp3s on the web when I wanted to hear a song. In the past I'd shell the $20 (CDN) for a CD even just for one song. Now I can't be bothered.

    I do respect artists and I still buy CDs of music that I think is worth it. But I will never again buy a CD unless I really want it. Or a DVD for that matter.

    Now I just rent from blockbuster if I really want to see a movie, instead of considering buying it. Or grab a MP3 from the actual artist's site. I even let my friends borrow my CDs/DVDs and make copies or VCDs. We have some sort borrowing-circle going on. All I care now is affecting the record/movie companies' business.

    Companies have to realize that consumers will only take so much and they start walking away.

    I was a legitimate and good customer for CDs and I've stopped because the bullish antics of the RIAA. Hell, I'm Canadian, isn't the RIAA an "American" organization which affects my choices?

    Hooky1963

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    POKE 53281,1 POKE 53280,0
  8. Another way to look at it is... by Private+Essayist · · Score: 5
    ...last year CD sales were up, and Napster was going full-steam ahead. This year Napster is seriously hamstrung and CD sales begin to slip.

    Hmmm...Napter does well, CD sales do well. Napster is emasculated, CD sales begin to slip. Now, I realize one cannot prove causation from this, but if they are going to use the "Napster is to blame" game, then they should work it both ways and realize that by their logic, when Napster is rocking their sales improve.
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