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Still More RIAA News
We just did an article about the RIAA's mendacity with statistics, and here come some more: first, someone has gone to the trouble to deconstruct their income figures over the past few years, showing that the RIAA's lack of investment in new releases is in itself sufficient to explain any dropping sales, and second, this website concerning the music industry settling a price-fixing lawsuit, which I believe is this one, filed two years ago.
I point this out because it gets grating every time it's suggested that the RIAA is some giant monopoly that controls what gets published and whatnot. It isn't. That's about as sane as headlining a report describing a "going postal" type massacre as "NRA goes on shooting rampage in post office".
The RIAA is an industry association. It does not control its members, its members control it.
You are not alone. This is not normal. None of this is normal.
Here in the UK, most new CD's cost £15-£20, which (according to the Universal Currency Converter) is about $24-$32 at the moment.
We get it worse over here by far, and the RIAA and MP3 aren't in the news nearly as much as over there.
I may be accused of whining / trolling etc, but some things just get blown out of proportion.
I married Miss Right. I just didn't know her first name was 'Always.'
The article referenced is quite clear on this point. It is quotoing the RIAA's announcements regarding income industry-wide (though presumably the RIAA's definitaion of "industry-wide" refers only to it's members).
The differnce between saying that the RIAA's income statistics are incorrect and saying that the NRA shot someone is that the NRA was likely not involved in the shooting, and likely did not colude to make the shooting happen the way it did.
The RIAA is directly reporting these statistics. They are the RIAA's collective industry statistics. Also, the RIAA members have been shown to actively colude to make these statistics what they are through price-fixing and other tactics.
On the point of calling the RIAA a monopoly, I think it's perfectly fair. Just as a corporation can act as a single entity even though it is made up of many individuals, so too does the RIAA act as a single entity for the purposes of controling retail sales of music and lobbying (i.e. buying politicians) for music-industry causes like passing the DMCA. BMI did not lobby to pass the DMCA independantly, the RIAA did. This is a tactic for gaining control over the market and over the technologies that affect the market by the RIAA.
Monopoly tactics? Yep.
Am I the only one to be amazed by the weird
complains the RIAA keeps on making and thinks
people still believes what they say ?
About all the missing sales they get because
people download mp3s - do they really believe
every mp3 downloaded is a cd less sold ??
Do they think someone with thousands of mp3s
would buy thousand cds ? We don't have unlimited
budgets..
And now they're complaining they don't get as
many profit as the previous years;
Hey we live in a capitalistic world..
the market also changes, and you should evolve
your product.
If your product doesn't sell anymore you've
only got yourself to complain to..
You don't hear McD complain these days that
people buy less burgers and pizzas or other
take-aways should be closed or are illegal ?
Learn about pinball machines on www.flippers.be
Amen.
:)
I'm glad also not to hear you (quite) say, "Well, I'd stop stealing if they'd just lower prices." Stealing will always be free (esp. when P2P cuts out the street corner middle man in the trenchcoat), and they can never compete with free. Just say "no" to extortion.
CD prices have fallen surprisingly little in 20 years -- about a third in inflation-adjusted dollars. I don't remember prices like this with vinyl, and when CD's came along there was a hefty premium for them. Yes, they provided higher quality, but I bet their production costs are now far lower.
I think the RIAA members need to do some serious introspection about their business model. That doesn't mean ignoring infringement, but realizing that the boat is sinking because of a lot of larger holes in the hull. Direct sales are a great concept; other methods to lower costs must exist. Note however that we do live in a society that somehow manages to buy $130 Nikes that cost $30 wholesale. (Astonishingly, Nike only makes a few dollars profit on each pair.) The record industry is far from the only industry with big markups, so don't rush to any conclusions.
The RIAA members should not abuse market statistics or fix prices to promote their cause. Resentful consumers should not steal to promote theirs. Now, all join hands and sing....
The funny thing is I'm sure 99% of the public has no idea what all this talk is about. The one-quarter who do don't even talk to the three-eighths of the 10% of the last ninth who uh... Well, I'd like to see some statistics on that, I'm 110% certain.
You know this is a great statement but it has been said 3 million times. The same exact sentiment can be found in every article on the subject. I think would be fair to mod this as redundant (if I had points). Am I the only one who gets sick of hearing the same thing over and over again.
Well "closing" napster didn't but people leaving napster (first because of the filtering and the knowledge that they would be shut down, then the actual shutdown) to use other programs, kazaa etc. Did actually significantly change the p2p world. Napsters chat rooms where filled with people discusing music and its software was all about recommending new music to others. kazaa and the like are simply about searching for music you know of and downloading it. The community feel is completly removed. Its not longer about sharing with others the music you love, and simply about getting free music the quickest way possible.
As the article mentions, there is a proposed settlement in a class action price fixing lawsuit filed by 43 state attorneys general against several major record companies and music retailers.
The terms of the settlement are that people who bought music CDs, records or cassettes between 1/1/95 and 12/22/00 can apply for a refund of up to $20.
But: Like most class action settlements, the terms are not necessarily favorable to consumers. For example, the settlement fund is $67,375,000 in cash plus $75,700,000 "worth of" prerecorded CDs. If "the number of claims filed would result in refunds of less than $5.00 per claimant, there will be no cash distribution to individual consumers. Rather, the cash portion of the settlement shall be distributed to mot-for-profit, charitable, governmental or public entities[.]"
Find out more at musiccdsettlement.com
Disclaimer: The poster (me) expresses no opinion as to the merits (if any) of this class action settlement, and this post is not legal advice nor is it an advertisement or solicitation for legal services.
in the Ziemann report. There's a great deal of emphasis placed on the decline of the number of releases over the past couple of years. However, this whole train of reasoning seems to be based on the following quote:
"Each year, of the approximately 27,000 new releases that hit the market, the major labels release about 7,000 new CD titles and after production, recording, promotion and distribution costs, most never sell enough to recover these costs, let alone make a profit." (from the RIAA Price of a CD page).
Now, perhaps the number of releases *has* declined markedly over the past couple of years. But it strikes me as an awful big assumption to just plug in this 27,000 number as the number of new releases for each of the past two years.
Again, not saying it's wrong. I'm just saying that it could as well be an average over the past decade or an inexact number thrown out in a context other than market data. It's a slender thread on which to hang a big chunk of analysis.
Well, it used to cost about 10 cents to make the cd itself. The packaging costs more. I think about a buck 50 goes to the artist, and about the same to the store IIRC. The rest goes to build Hilary Rosens ultra-secure super-secret super-villain lair, a (gently) used Echelon terminal, and a closet full of body molded rubber piracy fighting suits. This is what has proved to be so expensive, they keep having to let them out. True to form, she loves loves loves her ding dongs.
And if you think that's markup, I've got one word for you my friend. Plastics!
--Jimmy has fancy plans; and pants to match.
The recording industry's business is out of date. They are trying to sell us horses when we all want cars. There are better ways to get music than paying $20 for a CD that only has 1 good song on it.
Could you imagine this country if an RIAA 'like' organization formed from horse trading companies in the early 1900's to try to keep Henry Ford from putting them out of business? Saying Henry Ford's Model T violated the HTIAA's patent on selling transportation methods.
Sure downloading copyrighted material is illegal, but they have to do somethign about it. Obviously people are fed up with $20 CDs.
And yet the CD price remains inflated.
far be it from me to side with the record companies, but this is just a myth.
if CDs cost $17 in 1982, and assuming a generously low rate of inflation of 1.5% per year until now, CDs would cost nearly $23.
they don't. they still cost $17, and even that seems kind of high. most can be bought for between $12 and $15, not to mention all the "back catalog releases" that are under $10. in 1982 every CD cost $17.
Between the dates mentioned (Jan. 1, 1995 to Dec. 22, 2000) I bought hundreds of CDs and LPs. "Up to $20 per claimant" does justice to someone who bought 5 or 10 CDs during that time... but completely screws those who bought a lot more.
I read the section on my legal rights which states...
I'd assume that I could opt out of the settlement group and then file a claim independently... but that sounds expensive and time consuming in order to (doubtfully) recover what would be, at most, a couple bucks per CD/LP (maybe $1K total if I calculated that way).
The other option, and maybe more preferable, would be to become a member of the settlement and then show up a the courthouse to object (Portland, ME is a couple hours away... could be an interesting/educational trip to be sure). Maybe if we could organize a small army of people from nearby with LARGE music collections to come and (hopefully) testify/object. What do you think folks? I'm game.
-S
--- What parts of "shall make no law", "shall not be infringed", and "shall not be violated" don't you understand?
I'm glad also not to hear you (quite) say, "Well, I'd stop stealing if they'd just lower prices." Stealing will always be free (esp. when P2P cuts out the street corner middle man in the trenchcoat), and they can never compete with free. Just say "no" to extortion. :)
It's already been pointed out that downloading has a time cost associated with it. Owning a CD also has a benefit (pretty CD graphics and booklet and a permanent "backup" that I don't need to spend extra for).
The real problem is that many people are willing to pay $8-10 for a CD but this is usually not an option. Given the choice between paying $18 and paying $0 many people choose $0.
the problem with music, by Steve Albini
Depending on where you are.
Here in the Isle of Man there are now only two record stores, HMV and Switched On Records. Yes, you can do mail order but there's nothing as convenient as being able to buy something straight away at a store.
HMV shut down all the local shops by pricing them out of the market, when they first arrived, but now have an average (non-sale) price of £18.99 for a CD, which is just extortionate.
Switch On survives because the owner Gid works hard and is enthusiastic about what he does, and mainly 'cause he isn't in direct competition with HMV, targetting vinyl and DJs instead. And he supports local bands, allowing them to sell their CDs through his shop with little/no markup - something HMV are not willing to do AT ALL (company policy apparently).
In conclusion I'd agree that CDs are way too expensive over here, but what can the consumer do about it? Personally I DON'T download music, but I support local bands a lot, buy secondhand whereever possible, and if I can't get it secondhand I'll wait for a sale until I can get the CD I want for
Cheers,
Actually, most bands (IAN in the music industry) get less for CD sales, because of "Breakage." I quote from Moses Avalon:
He also mentions that you (as an artist) will be deducted the cost of packaging your album, which is usually 25% for CDs and 20% for tapes and LPs. Now, everyone knows that CD liners are pretty small and involve a lot less color printing than LPs... read Moses' site, it's very interesting.SheepHead
7d9e63e9501751ff4bf9307989d5623d *SheepHead
if anyone could get a hold of the RIAA mailing list, then publish this, I bet a few major media outlets will do some pieces on this.