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2003 CD Sales Officially Down 7.6 Percent

Lust writes "CNN is reporting that global CD sales for 2003 are down 7.6 percent, and points to 'rampant piracy, poor economic conditions and competition from video games and DVDs.' More grist for the RIAA mill on P2P? I just haven't heard anything new I'd like to buy... how about you?" It's also mentioned that "a strong second-half recovery in the United States, Britain and Australia... has raised hopes that the worst is behind the beleaguered industry", although "evidence of a full-fledged recovery is flimsy."

18 of 792 comments (clear)

  1. 7.6% is one number but there are many reasons by erick99 · · Score: 5, Interesting
    I think that P2P probably has had an effect on sales though not as great an effect as the price of CD's. Before P2P I bought music, I copied friend's music, and I recorded music broadcast over FM radio stations. I still buy music (I belong to one of the music clubs and even with shipping, I still only pay about $8 or so per CD), I also copy music from Kazaa. I copy some music that I have owned and I copy some music I do not own. Recently, after "pirating" a bunch of Norah Jones songs, I bought her CD. I think that happens a lot - people download music and then buy. There has always been a way to pirate music though it was usually borrowing music and re-recording it. I still wonder if a lower price for CD's would increase sales enuf that the artists and recording labels would be profitable because the decreased price would be more than made up for in increased sales.Is it also possible that the quality of music is not as great as in the past or that a lot of music is "more of the same?"

    Happy Trails!

    Erick

    --
    http://www.busyweather.com/
  2. Blame? Look in the mirror. by grub · · Score: 5, Insightful


    rampant piracy, poor economic conditions and competition from video games and DVDs.

    Hmm.. they seem to have missed "boring bands, unoriginal music and inflated CD prices."

    Here's a free tip from me to the music industry lurkers:
    Shrink-wrapping dog shit does not create a market for shrink-wrapped dog shit.
    Think about that, act on it, then give me 0.5% of the net.

    --
    Trolling is a art,
  3. Fall of CD sales doesn't mean less music sold by Eyah....TIMMY · · Score: 5, Insightful
    The International Federation of the Phonographic Industry (IFPI) blamed the slump in retail music sales -- now in its fourth consecutive year -- on rampant piracy, poor economic conditions and competition from video games and DVDs.

    Itunes is selling 2.5 million songs a week. The declining sale of CDs does not necessarily mean the music piracy is going up; it means there are also new means of selling music, digitally, and very legally.
    I hate it when declining CD sales is automatically attributed to piracy. The way music is sold is evolving too (and the labels are getting their share don't worry).
    --

    It is not enough to have a good mind. The main thing is to use it well. - Rene Descartes (1637)
  4. Well... by dolo666 · · Score: 5, Interesting

    > More grist for the RIAA mill on P2P

    Not really. 7.6% is not that much, considering how many companies have moved to an online sales model. If anything this refutes the RIAA's claim that P2P has any significant effect at all. What kinda depresses me was the point in the article that the reduction of top acts helps to boost sales; that the reduction of variety means more concentrated gains in that particular market, is actually bad for the market in the long run, IMHO.

  5. Carefully chosen words... by tweakt · · Score: 5, Insightful
    Total sales of singles, including cassettes and vinyl, which have dipped significantly since the Internet file-sharing and CD-burning craze began in the late 1990s, fell 18.7 percent in value terms between 2002 and 2003.

    Riiiight. And the introduction of the Compact Disc had absolutely no effect on the sales of cassettes and vinyl. It was clearly completely due to the "file-sharing and CD-burning craze". Uh-huh.

  6. Maybe prices are also an issue.. by Anonymous Coward · · Score: 5, Insightful

    In the US, a new CD is now $17.99, sometimes even $18.99 or $21.99. When I was in college 3-4 years ago a new CD was usually $13.99 or $14.99 at my local bookstore. I was at Borders the other day wanting to buy a new album (that I couldn't download!) and was blown away that they wanted $19.99 for ONE CD. Screw that, I'll search harder and find it online somewhere...

    When iTunes first came out I thought $9.99 for a CD was silly, but now 50% off is starting to make sense... (Speaking of iTunes this study doesn't seem to take online sales into account...)

  7. There's one more figure not figured... by Chordonblue · · Score: 5, Funny

    I think it's directly related to the fact that music QUALITY went down another 20% or so. Think Janet Jackson's breast will help sales, or will Justin Timberlake's musical talents sway yet another generation of gum snapping teens?

    God, 'music' is the suck today! Either that, or I'm just too old.

    Hey, you kids and your damn rap music! Shaddup!!

    --
    "...Well, there's egg and bacon; egg sausage and bacon; egg and spam; egg bacon and spam; egg bacon sausage and spam..."
  8. Can someone tell me by kemapa · · Score: 5, Insightful

    How an industry that makes so much profit can be considered a "beleaguered industry"? I'm sure the gas and cable industries are suffering heavily as well these days, huh?

  9. Murder rates are down too. You know why? by Neil+Blender · · Score: 5, Funny

    I haven't killed a man since 1984.

  10. Re:When Business Models Go Bad by homer_ca · · Score: 5, Insightful

    One of the funnier things is that the movie soundtrack CD costs as much as the whole movie on DVD. The soundtrack songs played during the movie might be partial clips and mixed with dialog, but they'll often play 2 or 3 of the soundtrack songs in their entirety during the credits at the end.

    Don't forget competition from video games too and the music they manage to bundle with them. The Tony Hawk Pro Skater games have at least a full CD's worth of music as the in game soundtrack. GTA Vice City had almost a hundred 80's songs in its in game soundtrack, but it was mixed in with the fictitious radio stations.

  11. Re:When Business Models Go Bad by bludstone · · Score: 5, Insightful

    Exactly.

    When I buy a DVD, Im not just buying the movie. If I just wanted the movie, I'd download it.

    Im paying for a high quality digital video presentation, a 5.1 DD/DTS audio track, Commentary, Bonus features, widescreen presentation, ect.. All for 15 bucks.

    Thats less then the cost of the CD soundtrack of THE SAME MOVIE.

    I argue that p2p has MINIMAL impact compared to competition from dvds and videogames.

    --

    no .sig
  12. RIAA free top 100 by vossman77 · · Score: 5, Informative

    I'm a big indie rock fan and I find this site to be a good break down of non-RIAA bands:

    RIAA Safe Top 100

    RIAA Safe Top 10 Alternative Rock

    all based on Amazon Sales

  13. Slashdotters always say this by bonch · · Score: 5, Insightful

    But the fact remains that everyone else likes the music coming out, especially young kids. You guys sound like old fogies--actually, you sound like my parents when I was growing up and they heard my music. Meanwhile, a lot of people DO like today's music, from the Strokes to Clay Aiken to Norah Jones to so on and so forth. But downloading is so easy and convenient now, today's youth don't give a second thought about it anymore. And that doesn't make what they're doing suddenly a-okay.

    Yet, you people don't seem to care because you've grown accustomed to the convenience as well, and in order to remove the label of criminality, you've tried to brush it off on to the record label lobbying group that just so happens to be doing the *exact thing Slashdotters said they should be doing* a few years ago--suing individual copyright infringers.

    This is silly. There are online stores now. There are services like iTunes. How many knocked-down excuses will people keep using to justify that they've got eMule down there in their system tray right now?

    Artists willingly sign their contracts, and I find it hard to feel sorry for them when they shit on gold toilets, have antique car collections, and do movies all the time. Yet, Slashdot pretends they're fighting for the artist by ripping them off and not paying for their music.

    What's amusing is that there is somewhat of a stigma when it comes to pirating games and apps simply because a lot of people here are programmers. Are you guys going to talk about "sampling games" when Doom 3 gets leaked a month early (as they all are now) and kids, college students, and people on high-bandwith connections pirate the fuck out of it?

    If everyone here at Slashdot was a musician, the message would be completely different. What I find most amusing, however, is the double-standard pointed out in my sig.

    But go ahead and play the "b-but the RIAA is *evil*!!! That gives me the right to pretend their copyright was magicaly transferred over to me to illegally distribute all over the place" game.

    99% of the users on Kazaa aren't "sampling" those albums. Hell, on eMule they're just RARing up entire discographies now and sticking them online. I'd respect pro-piracy people more if they just admitted what was going on and that it was legally and morally wrong. At least I can debate your position logically because you know where you stand. But this bullshit "it's the RIAA's fault we're illegally sharing all their copyrighted materials!" mindset will never, ever fly.

  14. Re:Where is the innovation? by Chordonblue · · Score: 5, Insightful

    A better question here is HOW do you innovate and with what?

    Here's a short (very short) history of innovation in the last 60 years:

    40's: Swing. The idea of using big band in a fast and fancy musical tone while borrowing from early blues and jazz really took it to a new art form.

    50's: Emergence of Rock 'n Roll and the multitrack recorder. This is where tech started to make inroads in music. The Electric guitar and bass finally get airplay.

    60's: Stereo rock and studio tricks. This is when the experiementation reached an all time high. Things started to be heard on radio that simply weren't possible in the 'real world'.

    70's: More studio refinement and the synthesizer finally takes lead. More sounds no one had ever heard, or heard together.

    80's: Early 80's saw better synths producing increasingly more realistic sounds. Glam metal makes a comeback as it is mixed with more attention to sound detail and synthesis. Rap makes it's national debut in the song "Rapture". New genre started.

    90's: Rap meets metal. Studio techniques are perfected to a point where any differences in sound quality appear negligible. Synthesizers focus on producing more 'natural' sounds. Machiens are developed to help improve vocal tracks (for those who can't sing worth a damn) and/or create backing vocals (for those who can't AFFORD those who can sing with them). True technical innovation has 'jumped the shark'.

    00's: For the first time in over 80 years of music, all forms of music that started this decade were around last decade. All technical innovations in the studio have been minor or non-existant as digital equipment is considered standard issue.

    The music companies - more than ever - are pushing personality rather than the substance of the music because there is no more innovation, but they are making a mistake.

    When Norah Jones outsells a pop star 5:1 and surprises the hell out of everyone for doing it, it's not because she's hot, it's because her music speaks to people in a way that has not been heard in many years. In many ways, it is music that could have been produced 30 years ago (albeit with primative equipment).

    If the music industry wants to survive it will need to innovate, but as you pointed out, this will mean returning to the roots of the music itself and not the 'flash in the pan' futures of personality.

    --
    "...Well, there's egg and bacon; egg sausage and bacon; egg and spam; egg bacon and spam; egg bacon sausage and spam..."
  15. Let's adjust that math a little by MythoBeast · · Score: 5, Insightful

    For starters 250m/32B = .78%.

    Second, 2.5 million songs per week times 52 weeks = 130 million songs at $.99 each, or about .4% of 32 billion.

    Third, $130 million spent on I-Tunes could be 130 million CD's not purchased at $15/hit (especially for the one-hit wonders they're publishing these days). Even after adding back the money for the itunes themselves, that's $1.82 billion in CD purchases, which is 5.6875%, which is pretty close to the entire decrease.

    Although it is impossible to precisely determine how much effect iTunes has had on this number, it is really poor math (and thinking) to think that it had no significant effect.

    Careful about criticizing other's nerdliness, for you bring your own failings to light.

    --
    Wake up - the future is arriving faster than you think.
  16. is there a contractural number... by zogger · · Score: 5, Interesting

    ... of times that the music on a CD may be listened to? Is the listening supposed to be only the person who actually purchased the CD? Where's the line on using this stuff? How much more money do you want for copies of work that was done in the past?

    I have a solution for the artists and distributiors, stop distributing completely. don't try to pawn off copies of work as something it isn't. Don't keep forcing people to believe that a copy is somehow all that valuable. In the olden days, ya, copies of anything were ridicvulously expensive in termsd of time and effort and materials to make, but today? GET REAL. Make your loot from day to day *working* live concerts ONLY,stop milking technology and BSing the people by recording and copying, and make all recordings illegal, then there won't be any conflicts or confusion, would there be? I say, put up or shutup. I will pay to enjoy being in the presence of someone WORKING, I WON'T pay for some vaporus copy of that experience. That's where I draw the line now. Any human on earth can make their own copies now with a pittance worth of gear, so that is where I draw the line, a copy is worth a PITTANCE. Same with movies, make those sorts of fictional representations be done completely live on stage, don't copy them to any media for redistribution. Same with television. Radio re broadcast. If the artist want to dilute their work by copying and distributing, then they can be happy with smaller amounts for a larger wider audience, by doing less work. Right now they want it both ways,sweet deal fopr them if they can manipulate the laws and media brainwashing mind control, big bucks for live honest work, big bucks for trivially copied media and the means to redistribute. sorry, it ain't worth it to more and more people because they can see reality.

    When you go to a restaurant, you pay for the food and service, do you EXPECT to keep paying for the service, forever? I don't think so. Do some actual work, bring me some chow, and I'll pay you again. Virtual representations of real live work are COPIES and as such not "worth" what a live experience is, and never will be from here on out given our level of technology now. that's reality. too bad, expensive copies are the buggywhips of the 21st century, un needed, un wanted, and they WILL be ignored, more and more, except as curiosities for museums.

    As long as they make up their minds I don't care, I don't download any music or videos, zip, nada, nothing, I could care less about it so I don't got a dog in this fight, but I can reason a little, and there ain't a hardly piece of this "official copy of work long done awhiles ago" stuff worth more than 2 cents to me. I've enjoyed live performances in the past,paid for it, that's cool, but reproduced fictitios representational copies... really... is just..so so, I could care less, it's not even worth unfilled hard drive space to me.

    I think artists (and sports stars and movie stars) are tremendously over valued except during live performances, and with the new ways of copying, they are seeing what their non-live performances are really worth, about zilch. Live performance, equals work, day to day w.o.r.k like everyone else does, reproduced is a dilution,a chimera, it's attempting to get a lot of expensive somethings (everyones money) for the same labor, and in todays world, tough noogies. You can't keep pulling that trick.

    That's my opinion anyway. And I'm sorry if that is semi offensive to anyone, but really. This is the year 2004, making copies of anything audio or visual is EXTREMELY easy to do, it's just not worth that much money, it's not even worth a bucka song. It's worth maybe a buck a cd, and that to someone to lazy to make their own copy for a dime.

    I know I can't keep making "royalties" off the work I did last week, work as in "sweat outside doing heavy nasty dangerous stuff", if I want another check, I need to do the same amount of work. That's how 99.99% of the planet earth makes their living, too bad most "artists" and their le

  17. The professional Economics of all this by mac666er · · Score: 5, Interesting
    The same topics have been circulating for a while now in slashdot... the pirating, how CD sales are going down and how is DRM to help/fix/damage this...

    I do believe that slashdotters are from all earth citizens... the bunch who are nearer to understanding the problem.

    That is however a problem in itself. Do the average Joe or heck.. do even RIAA or the firms they represent, understand the problem? not at all...

    I am currently a postgraduate student in Economics, and I am writing my dissertation (Thesis) on all of this. Several top schools (Chicago/Harvard) can't even agree by using postgraduate economic measurements if there has been ANY impact of P2P on CD sales.

    What are we to do then? The problem is, as I said, a monstrous amount of misinformation. The all time cliche that we fear what we don't understand is specially true now. Two centuries ago Luddites smashed machines in England to *prevent* technological progress from displacing artisans... and of course, the government supported them... until they needed the machines to combat famine and other economic shocks...

    Is piracy wrong? of course. Are we, users of kazaa and bit torrent, to blame? partly... the other persons responsible to that are the record labels themselves that didn't provide a business model before Napster came along. Had they understood the market.. they would have invested on it ages before and we would be enjoying new technological progress on music.. and later movies and software...But no.. they decided to sit on their comfortable sofas and watch the eternal kingdom of CDs.

    But businesses that forget to watch technological trends are just too many. And we never learn. Of course a natural answer is to use the law or some other means to savage whatever is left of what they don't want to believe, but definately is, a sinking ship... I can safely bet that if Kodak could sue digital camera users they surely would.. that is certainly less expensive than investing tons on R&D and assesing the new tech threat.

    Our children will still be complaining of how a company should stop protecting its old business model instead of promoting innovation. It always happens.

    The answer lies in the record labels themselves.. the CD market is a gonner... they have to provide new ways to entice users to buy content... Did anyone care to buy the same CD even if they had an old vynil record? of course not... Did anyone complain in buying the same DVDs again in order to update your VHS libraries.. of course not... and that is because there is extra value on the new technology... (nonlinear search and extra features anyone?)

    Come up with a new idea to sell content, *that is your job* spend on Research.. and customers wil surely come in droves... just see the i-pod...

    Just my 2 cents...

  18. Re:Don't speak for the masses, but.... by Anonymous Coward · · Score: 5, Funny
    I am never buying a CD again. Ever. The RIAA regularly insults my intelligence, and if I want music, then from now on I'll just make it myself.
    Same goes for me and porn.