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Music Downloading not Entirely to Blame

Outlyer writes "A recent article in The Economist discusses the proximate causes for the decline in music sales. Of some note is this quote in the article: "According to an internal study done by one of the majors, between two-thirds and three-quarters of the drop in sales in America had nothing to do with internet piracy. [...] Other explanations: rising physical CD piracy, shrinking retail space, competition from other media, and the quality of the music itself. But creativity doubtless plays an important part." The article discusses in some depth the short-term viewpoint of the majors and why that is likely to be the dominant problem, not the internet bogeyman."

39 of 538 comments (clear)

  1. fp by Jucius+Maximus · · Score: 4, Insightful

    I switched from buying new CDs to buying used ones. It saves money and puts dents in the RIAA statistics.

    1. Re:fp by creep · · Score: 5, Insightful

      Right, but it does nothing to help the artist. Even for musicians and bands who're on RIAA-represented labels (who receive next to nothing for album sales), new album purchases serve as an important popularity gauge. The *only* entity you're helping when you purchase used music is the store you're buying from. Might as well just download the music for what it's worth.

    2. Re:fp by superpulpsicle · · Score: 4, Insightful

      Ever since I started buying music on iTunes, I have yet to buy an entire album. What does that suggest? There are too many junky tracks on every CD. There is no reason to make consumers pay $12 for CD, when I can download the track I want for $0.99.

      The sad part is the consumers are being blamed, when the record company execs steal the most. They don't need a promotion everytime an artist successfully go mainstream. If anything they should be fired for the lack of promotion of new artists. So many good artists out there are invisible under the radar unless you sample on iTunes or something.

    3. Re:fp by harlows_monkeys · · Score: 5, Insightful
      Ever since I started buying music on iTunes, I have yet to buy an entire album. What does that suggest? There are too many junky tracks on every CD. There is no reason to make consumers pay $12 for CD, when I can download the track I want for $0.99

      It could also suggest that you no longer are interested in stuff that you don't like right away. Looking back at all my CDs, I find that it is very common for my favorite tracks to be ones that I initially did not think much of. They grew on my after many listens, as I came to appreciate things I hadn't noticed on the first listen.

    4. Re:fp by PriceIke · · Score: 4, Insightful

      That's very true with me. I will buy a CD for one or two songs, then over the course of listening to it, I will grow to love other tracks on the CD that I didn't pay much attention to at first.

      That's why when I hear something new that I like, I will download a few tracks by the artist, and if I like him/her, I will buy their CD. I will first look at my used store for it though. I'd happily buy it new from Streetside if the RIAA weren't being such assholes about suing people who share music. If the RIAA would just leave file sharers alone they'd see their sales increase rather than decrease.

      --
      It's not a lie. It's the truth with lossy compression.
    5. Re:fp by shotfeel · · Score: 3, Insightful

      That's true.

      Maybe I'm missing it, but it seems like more and more albums are just a collection of random songs -not a group of songs that were made to go together.

      OTOH, I wonder how many here are old enough to remember buying music before the LP? The music industry seems to have forgotten that they used to sell just singles in the form of the '45. Yes, it had a "B" side, but everyone understood you were basically buying singles. Now the music industry in a tizzy because people only want to buy singles and they couldn't possibly survive if people only bought singles.

      Just wait, in another 10 years the album will be back in style.

    6. Re:fp by Solarbeat · · Score: 5, Insightful

      Could it be that all the crappy music from that era has already been filtered away by time, so these stations only play the really good songs that have staying power?

    7. Re:fp by radish · · Score: 4, Insightful

      My kids are entering their teen years and have found that they really like music.

      Now there's a surprise :)

      No, music is pretty much for shit these days.


      And this is different from when my parents told me the same thing 15 years ago how? Adults never like the popular stuff of the time, but then they're not the target market.

      I don't like much "pop" these days either, but then to be fair I never did. But it's a huge mistake to infer from this that there's no good music being made right now. There's loads. Music is a huge part of my life and there's plenty of good stuff around...you just have to look beyond your local "all hits, all the time" radio station.

      --

      ---- Den ene knappen er powerknapp, den andre er Bender voice knapp "Bite My Shiny Metal Ass"

    8. Re:fp by roman_mir · · Score: 3, Insightful

      Yes, I realize this is the way things are done in this country, however I don't see music as a necessity of life, do you? When someone can't afford a surgery, they die, well I guess the society somehow figures it's better to put the money to help these bastards, but when someone can't make a living by running a business that is not essential to anyone, the society decides to do the same thing....
      Are you telling me that this makes any sort of sense? If it does, I am off to my accountant, I am going to register a few corporations as a musician, then I am going to produce some crap I will call music (noone has to like it, or buy it even,) and then I will be waiting for my check from the government, who is collecting those taxes for me.

      Now how does that sound?

    9. Re:fp by roman_mir · · Score: 3, Insightful

      My point is that the levy is in line with the precedents in Canada and I understand why it is there, and how it makes sense within that framework of thinking. - I am not sure that it does make sense though. If it does, then all of those failing businesses in the country should be subsidized by the citizens of the country and I do not see that happenning. When a restaurant is openned and it goes bankrupt, I don't see the canadian government stepping in and sharing some money with that business, after all, the recipes used to prepare the food served in that place can surely be shared over the web. What's left is just buying some groceries and spending an hour in the kitchen. So no, giving money to a losing business does not make any sense even from canadian perspective. In health care for example, the money is there not to help the doctors, but to help the patients.

      And as long as I am paying for it, I might as well reap the legal benefits. - and I am not going to do that because again, I don't listen to music anymore. Too bad for me, I guess, I see no benefit from these subsidies whatsoever ever in any shape or form.

      As to your plan of creating a 'fake' music corporation, that's abuse of the system and it doesn't count as an example. - oh, the harsh words - 'abuse'. I feel abused by the system already, this just maybe my way of getting back at the system and taking away the money they take away from me. Sure sure, two wrongs don't a right make ;/ but as long as they treat me as a child or a criminal, I will treat them with the same attitude and no respect.

    10. Re:fp by Idarubicin · · Score: 4, Insightful
      You get a copy without compensating the copyright holder.

      You're not actually serious, are you?

      Yes, I did get a copy without directly compensating the copyright holder. Someone else no longer has the copy for which they already paid the copyright holder.

      There originally existed one copy, for which royalties were duly paid. There still remains one and only one copy. Unauthorized file sharing, on the other hand, can produce an unlimited number of copies without payment of royalties.

      How can you equate the two? And did you study economics at an RIAA-sponsored institution?

      Does Ford deserve a royalty payment if someone sells a used car? No, because the original owner no longer has the use of the property. Sheesh.

      --
      ~Idarubicin
  2. When The Economist slams a huge industry... by Anonymous Coward · · Score: 4, Insightful

    Well, at least we can be reasonably sure that the RIAA higher-ups will read it. Not that they'll listen, but they'll at least read it.

    1. Re:When The Economist slams a huge industry... by garcia · · Score: 5, Insightful

      Of course they won't listen to it. It says that they are the cause for most of their ills. They are the ones that are recruiting shitty music, pushing it to shitty/controlled radio, not embracing the Internet, wasting time on lawsuits instead of their original purpose, and not buying up the independents that they used to get some of the best fringe talent from.

      The Economist just blew away their views on how their little corner of the world works.

      I have a feeling that the music industry will claim that this article is nothing more than a conglomoration of Internet forum non-sense and that their business-model is acceptable and will continue. Afterall, they can claim whatever they want, the media/controlled-radio will distribute it, and the public is stupid.

    2. Re:When The Economist slams a huge industry... by lifeblender · · Score: 5, Insightful

      They will listen, but they will still respond as you suggest. The article will be ignored, and when record labels are asked for comment they will downplay its accuracy and relevance.

      However, the labels will take notice. Now the people in the recording industry who have wanted to alter the course of industry have something big to point to. They will slowly attract the attention of the executives to alternatives, and eventually, the recording industry will be prepared to handle the current state of technology and science.

      Right before the world changes out from under them again.

      --
      Playing pornographics games during the day is evil! Play at night!
  3. Re:I don't buy music by Pope · · Score: 4, Insightful

    Maybe you should expand your horizons beyond the top 40 then. There's plenty of good music out there, almost always has been. You just have to do the legwork to find the stuff that'll keep you interested.

    --
    It doesn't mean much now, it's built for the future.
  4. Brick and mortar stores don't serve me by nyekulturniy · · Score: 5, Insightful

    I am not a big music buyer, mostly because I can't get the music I like to hear (classical, folk and Celtic) at local stores such as Wal-mart, and the local folkie store is off my beaten path and has little parking. I would use a service such as this eagerly. And yet, everyone seems to focus on the indie rock scene and the big rock/pop/hiphop acts, and don't think that online distribution might mean the flowering of genres with smaller fans, such as folk, bluegrass, opera, choral, or whatever!

    Frankly, the best way for a business to thrive is not to have a radical change of the business model. Instead, incremental changes and continual improvement (hitting singles instead of homers) will get the job done. One incremental change can be to make sure that downloadable music isn't just for young listerners.

    --
    Nyekulturniy... Proudly confusing readers and editors since 1981!
  5. But... by Anonymous Coward · · Score: 4, Insightful

    According to an internal study done by one of the majors, between two-thirds and three-quarters of the drop in sales in America had nothing to do with internet piracy.

    So, one-quarter to one-third of the sales drop is due to internet piracy? I can see why companies might be worried about this. (And everyone who votes me down because I won't subscribe to their "waaa waaa waaa! I want my music for free!" is a wanker.)

    1. Re:But... by Penguinshit · · Score: 5, Insightful


      The point you're missing here is that, apparently, file-sharing isn't the major cause of the downtrend in sales. If the recording companies would focus on the real causes, and embrace the Internet in the way in which their customers demonstrably want it fashioned (as shown by the popularity of the old Napster and other peer-to-peer technologies), then they could stabilize the sales numbers and see a huge profit from opening up a new revenue stream.

      The current download facilities, while popular, still fail to address the real issues presented by peer-to-peer. The RIAA already imposes a "CD Tax", why couldn't it have imposed a "Napster Tax"? The issue isn't really about free music, but rather about unfettered access to a wide variety.

      Of course, the record companies fear decentralized distribution because it removes some of their current complete power over the industry, which is what this issue is REALLY all about.

  6. NEWSFLASH!!! by Anonymous Coward · · Score: 3, Insightful

    The CD boom was people format shifting to CD media, many people own legit vinyl, cassette and CD copies of the same album. I'm not in a real hurry to switch formats again and the great thing about digital music is that I can make unlimited copies without the sound quality degrading, this is the ONLY reason I re purchased on CD's, and if they want to make it hard for me to do that I'll stop buying.

    The drop in sales has fuck all to do with filesharing, and everything to do with the witless commercial pop that saturates the market; everybody except the RIAA knows it!

  7. Let's get one thing clear though... by jxyama · · Score: 4, Insightful
    ...that this still does not legitimize music piracy.

    no harm != legitimate in many people's opinions.

  8. people like me quit buying altogether by CrudPuppy · · Score: 5, Insightful

    I have bought 2 cd's in the past 3-4 years, not because I am pirating or downloading, but because I firmly believe the RIAA are the biggest crooks in this picture and refuse to support them.

    I believe the RIAA will rape their artists every which way they possibly can, and cheat them out of their royalties at every chance. Given this, I find it more than a little ironic that the RIAA campaigns against piracy by boldly proclaiming that downloaders are cheating the artists.

    Here's to hoping that sales continue to decline until the RIAA crumbles entirely out of the picture.

    --
    A year spent in artificial intelligence is enough to make one believe in God.
  9. The War on Piracy. by JaredOfEuropa · · Score: 5, Insightful
    Its the economy stupid!
    We know that, and they know it too... But they wanted to be seen acting decisively, by declaring a War on Piracy. A "War on declining shelf space" or "war on crappy music" doesn't sound as good.
    --
    If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
  10. The cell phone killed the CD star by killbill! · · Score: 4, Insightful

    TFA mentioned a reason why CD sales were dropping is that CDs are competing for shelf space with other, higher-value forms of entertainment.
    Which is true (that the OST CD is worth almost as much as the full DVD is puzzling at best), but missed a more important point.

    Two words: Cell phones.

    Here in Europe most basic plans cost EUR 40 a month. That's a sizeable share of a teenager's allowance. That's at least 3 CDs a month they won't buy.

  11. I vote poor quality by Morpeth · · Score: 5, Insightful
    I don't think I'm too old (I'm a 30-something) to be interested in new sounds and genres, but man - the stuff out today does nothing for me. I'd say 90%+ of hip-hop/rap is utter garbage, and the alternative stuff isn't all that alternative.

    H-H is horrid imo - endless, short, electronic loops of intensely annoying sounds, weak and/or stupid lyrics, bad singing (if they even sing at all), it's overly produced, etc. etc.

    Any new CDs I buy now are established artists who've been around for a while and have a new CD out; or I'll just buy some 'classic' stuff.

    Once uninventive, regurgitated hip-hop took over, the industry pretty much lost me.

    --

    'The unexamined life is not worth living' - Socrates
    1. Re:I vote poor quality by snoig · · Score: 5, Insightful

      I'm someone who is to old and I really like a lot of the new music I hear today. The problem for RIAA is that none of it is published by them. There are so many alternative sources for music these days that I haven't purchased any RIAA stuff in years. I have purchased cd's from bands at live shows, streamed Internet radio, purchased music from magnatunes.com, downloaded from bands websites, downloaded live shows from sites like etree.org. All legal alternative ways to get quality music these days. RIAA just needs to wise up.

    2. Re:I vote poor quality by TomTraynor · · Score: 3, Insightful

      I am in the 40+ range and I agree. I also go out at times to venues that have live local bands playing and I enjoy their music a lot better than the packaged garbage the big companies try to get me to buy. These are not always the R&B & classic rock, but, bleeding edge bands and music. I don't always like the music, but, it is not boring. Also, their CDs are MUCH cheaper than the ones in the store and I know where the money is going to!

      --
      Panic now, beat the rush!
  12. How do you count the effect of quality? by jfengel · · Score: 3, Insightful

    It's often beem said on Slashdot that the real reason for the decline is the decline of the quality of the music. That's possibly true, but I'd like to know how a reliable study could report on it objectively.

    Music tastes are extremely subjective. If anything, the objective measures would tend to suggest that the music is getting better, in the sense that it's been focus-grouped to death. Somebody out there is saying, "Yes, we like it. We like it so much we want to copy it off the Internet or from a friend's CD."

    It seems likely that in fact the focus-grouping and hit-promoting have lowered the quality of the music to a least common denominator, but I'd love to know how this industry report went about measuring that. In the end that measurement will describe how the music changes from here. The executives who make the decisions aren't artists and don't use artistic judgment to decide what to produce. They look at numbers and poll likely group members to see what will sell. They know that people will only buy what they like, so I'd love to know what measure of "like" they're using for this study that's different from the ones they're already using.

  13. Re:Not in Korea by EvilTwinSkippy · · Score: 3, Insightful
    I'm pretty sure that if you talked to someone from the 1860's, and tried to explain to them that there was an industry that was based on people paying for a music recording they would laugh at you.

    The whole concept of copyrighting a recording is very recent (1910's or so.) Before then, you would copyright the sheet music, which was published like any other printed work. The whole idea of controlling the playback of music was originally laughed out of court. (The early litigation centered around the mechanical playback of music by player pianos.) What came out of those legal cases was the concept that merely transposing the musical notation into another form (in this case from sheet music to the punch cards for the piano) was considered copyright infringement.

    Not because you copied the music, per se. Because you were selling a copy of the music. After a bit of wrangling congress passed laws dealing with "mechanical recordings" which paved the way later for wave-form playback devices that captured sound directly and played it back.

    Then came the radio.

    With radio (and recorded playback at public events), we had a dilemma. Radio wasn't technically "selling" a recording of the music. They were selling a performance of the music. After a lot of wrangling the music industry and broadcasters came up with a compromise: compulsery licensing. You purchase a license to play back music in public. The proceeds from the license are redistributed back to the artists and publishers. (The RIAA doesn't make a dime off of Radio, that's ASCAP's bailywick.)

    With the Internet we have elements of both case law. On one hand we are publishing "machine recordings" of music. On the other, the mechanism to transfer the files is essentially that of a radio broadcaster.

    In the end, we should have to pay for the recording. But do we make the check out to the RIAA (ala record sales) or to ASCAP (ala performance licenses). The RIAA, of course, is hoping that the money comes back to them. In the end though, it will probably be an ASCAP type of organization that deals with distributing music over the internet.

    --
    "Learning is not compulsory... neither is survival."
    --Dr.W.Edwards Deming
  14. Re:Music Distribution with large retailers by frank_adrian314159 · · Score: 4, Insightful
    This would eliminate the need for shelving for CD's, as well as allow retailers to have a much wider selection of music available.

    But at a much higher cost. Not only do you have to pay for the burner machine, but you also have to deal with issues like what to do about inserts, cases, etc. Also, a listen/burn machine is a serial use item, while shelving is parallel use. Finally maintenance, content updating, etc., all raise the cost even more.

    Anyway, it's non-viable when I can just sub in another rack of DVD's at a higher margin. If we end up where DVD's are the only thing available, who cares. People will generally spend their entertainment income on what's promoted and available. Which bits happen to be on the plastic doesn't matter to the retailers. Nor does it matter to the conglomerates who are just as happy (if not more so) to sell a crappy DVD as opposed to a crapy CD.

    --
    That is all.
  15. Is it all relative? by UnknowingFool · · Score: 4, Insightful
    The news from the industry is that sales are in decline since the 90's. One thing that isn't clear is the relative sales of new material vs newly released material. During the early 90's the CD player became affordable to the masses, and many people started to replace their older cassettes and records in addition to buying new CDs. The music companies started raking in sales, but after a decade, most of the old albums have been replaced.

    Sure there are re-releases today still but the numbers dwarf in comparison to the beginning to 90's. This was a point brought up during PBS Frontline "The Way the Music Died" documentary on the troubles of the music industry. I seem to remember that Frontline pointed out that sales relative to new albums have actually gone up. But the overall sales have gone down because older albums sales have decline greatly. This Economist report doesn't address this point.

    --
    Well, there's spam egg sausage and spam, that's not got much spam in it.
  16. Re:Lets separate fact and fiction by gorbachev · · Score: 3, Insightful

    " This is a study, just like the other studies made. Because this one says what you want to hear, doesn't make it 'truth.'"

    It wasn't just any study. It was made by one of the major music publishers. Not by an pro-consumer group or the lobbying arm of the consumer electronics manufacturers, but by the VERY people, who have been claiming Napster killed the CD star.

    --
    In Soviet Russia, I ruled you
  17. MPAA / RIAA biggest fear by bani · · Score: 4, Insightful

    the one thing that gives them nightmares and keeps them up at nights.

    it's not p2p or theft or piracy or even used CD/DVD sales.

    their biggest fear is that you tune out and stop watching/listening altogether. that would mean not only no sales, but no advertising revenue either.

    if this happens on any scale, i expect the mpaa/riaa to push through 1984/maxheadroom style legislation requiring a TV in every house turned on 24/7, and make it illegal to turn them off.

  18. Satellite radio effects by ewg · · Score: 3, Insightful

    The article doesn't mention satellite radio, but in the USA subscriber bases for both XM and Sirius satellite radio services are growing rapidly.

    Don't know what the net effect of growth is. As a one-year XM subscriber, I listen to CDs less, but have purchased a couple a CDs from artists I never would have discovered without satellite radio.

    --
    org.slashdot.post.SignatureNotFoundException: ewg
  19. Re:How come.. by GMFTatsujin · · Score: 4, Insightful

    Then you get bands like Chumbawamba who, after decades of singing subversive anti-corporate rhetoric, manage to prove their point most eloquently by writing a single album designed to be a one-hit wonder -- as a JOKE.

    Now it's tough to find their good old albums because the stores only stock the sucky one-hit wonder album. Seems that the older stuff just doesn't fit the band's image anymore.

    Irony is lost in the free market.

  20. It's getting better. . . by Java+Ape · · Score: 5, Insightful
    I agree with the sentiment that mass-marketed music has declined dramatically in quality in recent years. However, the cloud has a silver lining that is becoming rapidly more apparent. As commercial music becomes increasingly unpalatable, niche markets for creative local groups become available.

    We are experiencing a Renaissance of locally-produced music, from street performers to small bands. Music is no longer the exclusive domain of a handful of mega-conglomerates, but is being taken back and revitalized on the micro scale. Seattle/Portland (near me) support a thriving community of small indepenent musicans producing truly excellent music. It's like the 60's all over again. Not so much "new" sounds, but new takes on the folk/rock/celtic traditions and a resurgence of interest in vocals and acoustic instrumentation rather than synthesized, reprocessed top-40. Complex, muti-layered arrangements that depend on real musicians, not 20 year old pinups with digitally-enhanced vocals supporting their silicon-enhanced figures.

    Personnally, I'm excited by the trend, and am actively building a large and varied CD collection with very little help from the RIAA.

  21. Evil Economics by Toby+The+Economist · · Score: 3, Insightful

    I wrote about this a while ago.

    http://www.summerblue.net/missives/copyright.htm l

    The major distributors are now in a situation where their product is having to compete with a free rival (P2P). It's hard to compete with free. In fact, all the major distributors have to offer are ease of access, breadth of catalogue and guaranteed quality. This is not worth 15 UKP a CD and 25 UKP a DVD! this painful adjustment is currently what the major distributors are in denial about, and have attempted to perform a minimum-effort resolution, lawsuits, and via DRM.

    Our culture is accustomed to copying, because of the VCR, and it is not possible, a la prohibition, to legislate out of existance an act which is widely culturally accepted.

    DRM is a brittle solution, since the P2P networks provide immediate and universal distribution of material; if a DRMed product is broken *just once*, then it's gone - it goes public, and that's that. Since DRM is a major investment, and since these companies have a long habit of choosing proprietory security implimentations, I think they're on a burning plane with no parachutes.

    All in all, I think the heyday of the major distributors is over.

    --
    Toby

  22. Except... by debest · · Score: 3, Insightful

    Buying used is guaranteed, no-doubt-about-it legal. No copyright violation possible: you're buying the same copy as was sold originally.

    In such a scenario, that copy has already benefitted the artist as much as it was designed to.

    --
    Look at the tomato! Isn't it sad? He can't dance! Poor tomato!
  23. "It's the business model, stupid" by Old+Stancher · · Score: 3, Insightful

    The major labels have all adopted a business model which puts a heavy initial investment on an "artist" with the expectation that their popularity, while enormous to begin with, won't last more than a few years. I think people are wising up to the fact that they've bought all these albums that they don't listen to any more and have realized that it's just a waste of money to invest in music with no staying power.

  24. Nothing new here? by mikers · · Score: 4, Insightful

    Not too long ago, there was a slashdot article of an interview with David Crosby on Frontline.

    He talked about how at some point the tone and attitude of big music changed from being supportive and developing of young talent for the long term to being adverserial and short term profit minded.

    I think this economist article is the conclusion and proof of what he was talking about, his thoughts were mostly anecdotal without concrete evidence. From the interview:

    "When it all started, record companies -- and there were many of them, and this was a good thing -- were run by people who loved records," he says. "Now record companies are run by lawyers and accountants. ... The people who run record companies now wouldn't know a song if it flew up their nose and died."
    SRC: PBS Frontline

    The result of this commercialization and 'selling out' resulted in companies the likes of Sony, BMG, EMI, etc. run by lawyers and accountants. Of course, their first instinct when faced with new technology and a threat is to sue the pants of grandmas and 12 year olds. Way to go corporate America!!!

    I'm gonna apologize for my attitude, for this next part but... I got karma to burn.

    Evidently, having some lawyer or accountant run a business may just well run it into the ground. There is apparently no substitute, no matter how ivy or expensive your degree may be, for heart and really appreciating the business you work with or work in. Being in it for money will eventually sink the ship. It's love of music that brings out the great music, and brings it to the people, not lawsuits, not cheap thrills turned into overnight successes with the help of Payola (to radio stations -- ahem Clear Channel), over promotion and slick advertising (ahem -- MTV).

    I hope Elliot Spitzer rips these companies and the lawyers who run them a new one with his Payola investigation.

    M