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RIAA Almost Down To Pre-Napster Revenues
...they don't have Napster to kick around anymore.
For yesterday's press release, the RIAA commissioned a survey by a research firm to prove that music-downloading is to blame, but all they tell us about it is that "23 percent of surveyed music consumers say they are not buying more music because they are downloading or copying their music for free." No more details provided, no link to the survey's raw numbers. So what does this mean? I guess 77 percent are buying more music because they're downloading it for free?
To put the new sales figures in perspective, a look at the big picture will be helpful. Free music-trading software had been in serious trouble since mid-2000. Despite indications that music-trading was helping sell CDs, the labels forced Napster to implement a name-blocking scheme. We ran a story in March 2001 pointing out that its traffic had fallen by 60%.
Then SF Gate ran a nice story last August, pointing out that declining RIAA sales seemed to mirror Napster downloads:
"At this point last year, with Napster in full swing, record sales were up 8 percent from the previous year. This year, sales of new albums -- not including established catalog titles -- are down 8 percent. That's quite a pendulum swing."
Sure, other file-trading software has taken Napster's place, but at this point it's fun just to watch the industry limp around after shooting itself in the foot.
Not that it's really hurting money-wise. All this week's numbers mean is that the RIAA's total revenue has declined almost to 1998 levels. In 1998 they made $13.71 billion; after peaking in the mid-$14-billions, last year they made $13.74 billion.
This probably is due party to the crummy economy, partly to their failure to find any new sound to co-opt and mainstream recently, and partly to lack of big artists releasing megahits like they did in 1999. You know music officially sucks when the labels have to pay someone $28million not to sing.
Oh, and partly due to the RIAA raising CD prices by $1.16, which is $0.25 over and above inflation (which has been higher than wage growth lately anyway). CDs are 94% of their revenue. Most industries, faced with declining sales, try lowering their prices. Not this one.
I've got two pieces of advice for the RIAA.
The first is to stop pissing off your own artists so much that they blow off the Grammys and throw their own party just to stick it to you. The musicians and singers are the ones making you rich. I know you think they're all interchangeable, but if you alienate them enough, when a new technology gives them an edge, they'll drop you like yesterday's sound.
The second is to reread Robert Heinlein's very first story Life-Line:
"There has grown up in the minds of certain groups in this country the notion that because a man or corporation has made a profit out of the public for a number of years, the government and the courts are charged with the duty of guaranteeing such profit in the future, even in the face of changing circumstances and contrary to public interest. This strange doctrine is not supported by statute or common law. Neither individuals nor corporations have any right to come into court and ask that the clock of history be stopped, or turned back."
I have to admit that for the first time I began to believe the music industry had a point about piracy when I saw a grey haired woman pushing 60 in the coffee shop talking to her friend about all the music she'd downloaded on the weekend using Kaaza.
I don't know about the rest of the world, but I know that I'm not buying much music these days because I'm so busy duplicating DVDs left and right. Well, that and exporting strong encryption :)
For your security, this post has been encrypted with ROT-13, twice.
second hand CDs. I get most of my music from a local branch of CD Warehouse (A cutting edge site - their Y2K testing report is on the front page!) for between $8 - $10. My local and other stores like it are always busy, and not a penny goes to the RIAA! It's a damned outrage!
Hey, i'm looking for a job, and oh man, i just can't wait to have that new MMM bopper boy band CD. that's just my focus on life right now! oh wait, maybe i should try to feed the kids and keep the mortgage and pay insurance and...
So if I can buy the sheet music I should just play the songs myself and then I wouldn't have to buy the cd? The only way that analogy works is if I could download and steak and a baked potato from some p2p network.
"The avalanche has already started. It is too late for the pebbles to vote" -- Kosh
my motivation for not buying CDs is the tyrannical RIAA and it's bullying tatics. i shall be damned if i'm ever going to buy another CD from any artist or record company that has even the slightest affiliation with RIAA. they get nothing from me but spite.
There is music on MTV?
When did that start?
Hell, if Sorority Sarah can burn the new N'SYNC album on her Compaq, she's not going to buy it.
The negative consequences being?
>drug war anyone?
No thank you, I'm rolling a joint.
//rdj, the flying dutchman
No one can understand the truth until he drinks of coffee's frothy goodness.
--Sheikh Abd-Al-Kadir, 1587
i agree we should go back to vinyl
lose != loose
Translating the DMCA from legallese and into plain English constitutes a form of reverse engineering, which is banned by the DMCA..
The REAL jabber has the user id: 13196
What you do today will cost you a day of your life