Slashdot Mirror


Digital Music Sales Skyrocket in 2005

Luke PiWalker writes "The market for digital music hit $1.1 billion in 2005, more than triple 2004 sales. But the industry, wanting to wring the maximum profit out of the consumer, remains fixated on piracy." From the article: "The IFPI also called on ISPs to join the fight against music piracy, which it claims severely erodes the profits of its 1,450 member record companies across the globe. The IFPI added that the legitimate music business was gradually gaining ground on digital piracy. It said research showed that in Europe's two biggest digital markets -- Britain and Germany -- more music fans are now legally downloading music than illegally file-swapping."

31 of 176 comments (clear)

  1. RIAA has won by digitaldc · · Score: 4, Insightful

    Now can they please stop suing their consumer base?

    --
    He who knows best knows how little he knows. - Thomas Jefferson
    1. Re:RIAA has won by gEvil+(beta) · · Score: 5, Insightful

      This is a lot like the war on terra. They won't have successfully "won" until there isn't a single person out there making a copy of a song for someone else without paying. In short, it will never end...

      --
      This guy's the limit!
    2. Re:RIAA has won by dc29A · · Score: 2, Insightful

      RIAA has won? Not IMO. RIAA wants to sell you a product. Product being one CD full of shit with maybe 1-2 good songs. Those good songs are being played on radio and bought in online download services. The CD itself is not bought. CD sales have gone down again last year while legal downloads are going up. Thanks to legal downloads, people are no longer inclined to buy an entire CD full of crap because they like maybe one song on it.

    3. Re:RIAA has won by Daniel+Dvorkin · · Score: 3, Insightful

      The "one CD full of shit with maybe 1-2 good songs" comes up every time this subject is discussed, and I have to ask: what CD's are people buying that they say this, anyway? I'd say I like 90+% of the songs in my CD collection, whether I'd heard the song before buying the CD or not -- because I usually buy CD's by artists whose work I know is consistently good, or that have been recommended to me by friends whose musical judgement I trust. Even the best band can turn out a lousy song on occasion, sure, but I have to say that if you buy an album expecting and accepting that most of the songs on it are going to suck, then you pretty much deserve what you get.

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    4. Re:RIAA has won by surefooted1 · · Score: 4, Insightful

      RIAA has won
      Or have they?

      ...research showed that in Europe's two biggest digital markets -- Britain and Germany -- more music fans are now legally downloading music than illegally file-swapping.

      I think people have just found more "secure" ways of trading music.

    5. Re:RIAA has won by gEvil+(beta) · · Score: 5, Insightful

      This is the difference between a discrminating music buyer and someone who buys the top 40 hit of the week. One buys music because they like the music. The other buys the music because it's cool and that's what they're supposed to do.

      --
      This guy's the limit!
    6. Re:RIAA has won by mzipay · · Score: 4, Insightful

      C'mon! It's not that black-and-white!

      The reality is that most people who have a CD collection own both kinds of works - those that they listen to regularly, from the first song to the last, and those that they listen to only on occasion, or only to certain tracks.

      Here's a newsflash - musical taste is SUBJECTIVE. What you consider to be the greatest musical masterpiece of humankind's existence might not be worth picking up from the 25-cent bargain bin at the local swap shop to someone else.

      The "argument" here (going back to the original post) is quite valid: if I like a particular song or couple songs off some band or artist's album, and I *don't* like (or don't care one way or another) about the rest, I don't want to pay FULL price for the whole album.

      Personally, I only buy new CDs for my absolute favorite bands and artists. For the rest, I first look at local CD exchange stores, followed by online used copies, and finally resorting to "piracy" if all other options have been exhausted.

      That song that got released back in 1972 that I just heard the other day in a TV commercial and would really like to add to my collection? Um, yeah, I'm NOT going to go out and pay for the entire album when all I want is that song. If I can find the album on the cheap (and by cheap I mean $1 or less), I'll buy it.

      Otherwise, it's a pirate's life for me. ARRRRRR!

  2. Legal downloads bigger than piracy? by nordelius · · Score: 5, Insightful

    How are they measuring piracy? How can they possibly get reliable figures on the level of music piracy.
    Not that I am necessarily complaining. If the industry is content to consider that online piracy is not as big as legal downloads perhaps they will leave online music alone and look at people who actually make money from piracy (e.g. sales of counterfit CDs/DVDs)?

    --
    -- "You never mentioned comets before, Mac. This opens up a whole new area of negotiation." - Gordon Urquart
  3. Digital Music? by Compenguin · · Score: 4, Insightful

    Aren't CD's also digital music, not just that downloaded crap?

  4. Legitimate Markets by warmgun · · Score: 5, Insightful
    "It said research showed that in Europe's two biggest digital markets -- Britain and Germany -- more music fans are now legally downloading music than illegally file-swapping."

    This seems to have little to do with any anti-piracy efforts from the record labels and much more to do with the wide-spread availability of legal markets for digital music for the first time.

    1. Re:Legitimate Markets by Alex+P+Keaton+in+da · · Score: 2, Insightful

      Exactly...
      In my opinion, the record companies are going to have to find a new way to measure album sales.
      For example- I no longer (like I did in the 90's) buy a whole $20 CD when I just want a song or two- I just buy the song. In my opinion. when I buy the one good song on an album (and we all know the albums that have one good song), the record companies should record that as an album sale. ( Of course this would be subjective... But did you ever notice how Vanilla Ice consistantly has one of the top 50 songs on iTunes in the HipHop category- does anyone think this would be the case if you had to buy his entire album to get "Ice Ice Baby?")

      --
      And All I Ask is a Tall Ship And a Star to Steer Her By
    2. Re:Legitimate Markets by MtViewGuy · · Score: 2, Insightful

      This seems to have little to do with any anti-piracy efforts from the record labels and much more to do with the wide-spread availability of legal markets for digital music for the first time.

      What has changed the entire equation is the enormous success of Apple Computer's iTunes Music Store working in conjunction with the iTunes program. By pricing singles at 99 cents US per song and US$9.90 per album, this has actually benefited a lot of artists because not only does this cut down on music piracy, but it has actually provided a decent revenue stream for a lot of lesser-known artists.

  5. Enough Is Enough by gasmonso · · Score: 2, Insightful

    When will the RIAA stop these senseless lawsuits and focus on the digital download market. Piracy will always exist, accept that and work on growing your customer base instead of increasing the number of enemies.

    http://religiousfreaks.com/
    1. Re:Enough Is Enough by shark72 · · Score: 2, Insightful

      "When will the RIAA stop these senseless lawsuits and focus on the digital download market."

      Record companies, like you and me, can indeed walk and chew gum at the same time.

      The success of the digital download market is due to the record companies' focus. Universal has finally digitized their entire catalog and is now digitizing their back catalog of European releases. They've even made noises about an online-only music label, ostensibly so they can make investments in more commercially risky artists without the overhead of the traditional retail channel and hard goods.

      "Piracy will always exist, accept that and work on growing your customer base instead of increasing the number of enemies."

      This is another example where folks don't realize that record companies act like other businesses.

      Think of your favorite store. Maybe it's a grocery store, or a Fry's Electronics, or a hobby store, or whatever. Odds are that you've noticed that they have sales and promotions, but they also take efforts to curb shoplifting. Your newspaper is filled with pages and pages of ads for sales at your local stores, yet the anti-theft industry remains huge.

      Now imagine if you went to your local store owner and gave him or her the same advice you have for the record industry: "Shoplifting will always exist, accept that and work on growing your customer base instead of increasing the number of enemies."

      Do you think that would be good avice?

      Store owners know that shoplifters will always exist, but this does not prevent them from taking measures to stop it when they can. The record companies take the same approach.

      --
      Sitting in my day care, the art is decopainted.
  6. Not Impressed by Kn1nJa · · Score: 1, Insightful

    This is just another ploy to try and persuade people to legitimately buy music. They should realize by now, that no amount of sugar coating will make buying music any better. It's still a rip off and always will be. I've downloaded music ever since the beginning of napster (back when it was actually cool...) and won't be buying any time soon...

    --
    [Insert Witty Sig Here]
  7. Legal music by poeidon1 · · Score: 2, Insightful

    These companies try to prevent downloading illegal music, without providing a platform to download legal music. ITunes was one of the first to cater that and thats why it is a success but more needs to be done especially with files with DRM

    --
    They called me mad, and I called them mad, and damn them, they outvoted me. -Nathaniel Lee
    1. Re:Legal music by Professor_UNIX · · Score: 2, Insightful
      ITunes was one of the first to cater that and thats why it is a success but more needs to be done especially with files with DRM

      IMHO iTunes Music Store would be a slam dunk if they had simply adopted Apple's Lossless codec as the standard format for downloaded music instead of the lossily compressed AAC files. If I'm going to pay the store price for an album on iTunes Music Store then I should be able to take the files I've downloaded and burn a CD that will be the exact same quality as if I had bought that CD from the store. I don't WANT to keep my music in DRM-protected AAC files, I want them to be cross-platform in MP3 or FLAC format but it's stupid to burn the AAC files to a CD and then rerip them since you lose too much audio quality.

  8. Greedy, perhaps, but not necessarily 'Evil' by Anonymous Coward · · Score: 1, Insightful

    "...But the industry, wanting to wring the maximum profit out of the consumer, remains fixated on piracy..."

    Well, I guess having a sizeable chunk of your expected income stolen will cause a certain amount of 'fixation'. I am an IP lawyer, so I may be slightly biased, but if people want something that someone else went to the trouble of creating, doesn't it seem kinda fair if the creator asks to get paid? I have trouble understanding why so many people seem to condone simply *taking* it... and then playing the 'Evil industry' card on the rightholders to boot! Seems a bit incongruous to me. There's such a thing as free music: download stuff that bands put online for your enjoyment or make some of your own, already.

    1. Re:Greedy, perhaps, but not necessarily 'Evil' by Daniel+Dvorkin · · Score: 2, Insightful

      if people want something that someone else went to the trouble of creating, doesn't it seem kinda fair if the creator asks to get paid?

      Why yes, it does. And the answer, apparently, from musicians who are familiar with the parasitic ways of the music industry is, "No, not really."

      --
      The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
    2. Re:Greedy, perhaps, but not necessarily 'Evil' by Bimo_Dude · · Score: 2, Insightful
      Isn't greed one of the seven deadly sins, according to religious people? If so, then the RIAA tactics are greedy AND evil.

      I can understand that in the surrent system (at least in the US), it is a company's duty to maximize shareholder value, but the current system also makes it impossible to look beyond the next quarter. Companies can not be concerned by the long-term value that is created when they don't screw their customer base. Suing and screwing seems to be the "new paradigm" (for you management types) in business.

      Sad.

      --
      "Teleporting Rodents with D-Cell Battery Displacement" theory -- IgnoramusMaximus (692000)
    3. Re:Greedy, perhaps, but not necessarily 'Evil' by bigbird · · Score: 2, Insightful
      If the creator gets the lion share of the money, then I would pay without a second thought.

      So do you apply this line of reasoning to all products you need? (e.g. buying a pair of trainers, would you steal them if you think the people actually making them only received a few cents per pair).

  9. DRM'd music? by Anonymous Coward · · Score: 3, Insightful

    Nothing will ever make me pay my own hard earned money for a DRM'd file or CD. It is just not going to happen. I have no interest in buying inferior products.

  10. It's quality and convenience! by ami-in-hamburg · · Score: 4, Insightful

    Personally, I think increased online sales would have to do with the quality and convenience. I don't have any idea how many times I downloaded some song, then when you play it back, it's something completely different than what you expected because some bonehead mislabeled it.

    I don't know what bit rate you can get from legal online services but I also got really tired of the crappy 128bit rate that it seems like everyone ripped to. I recently just finished re-ripping every CD I own to 256bit and I can tell the difference. I would think you won't get all the background garbage noise in a legal download either. At least I would hope there are no (pop, crackle, fizz) in the legal downloads.

    Convenience is a huge factor too. I fully understand that one person's fav band is another's most hated. However, I got sick of buying CDs because the group had a couple of tunes on the radio that I thought were really good only to get home and find out the other 8-10 tracks on the CD are crap! The ability to buy single tracks, at least to me, has value.

    1. Re:It's quality and convenience! by AeroIllini · · Score: 2, Insightful

      Sound quality is still my main objection to purchasing music on the Web... after DRM protection of course. Jobs got everything right once again: after getting people to pay for software to produce content, and refusing people to modify the software to suit their needs, tech companies managed to get us to pay for crappily digitised content that we can't even copy onto the hardware we choose. To me this is pure evil genius, but I will try not to fall into the trap as long as I can find CDs for a decent price.

      It's not pure evil genious... it's just plain genious.

      The DRM in iTunes (FairPlay) is, I think, the best compromise that could be made in the current climate of RIAA control. If Steve had made the restrictions any looser, the record companies would have probably walked out of the contract negotiations. According to the Mac philosophy, you should be able to do anything you want with that music, as long as you do it on a Mac. Import it into iMovie as a soundtrack, listen to it on your iPod, chop it up into sounds for your desktop, render the bits as an image and use it as desktop wallpaper, whatever. Unfortunately, the recording industry won't have any of that, so Steve was forced to add restrictions. I'm sure he fought hard for us lowly consumers, since FairPlay is much more permissive than other forms of DRM available.

      As to the question of quality: the vast, vast majority of people who download tracks from iTunes listen to them on their iPods. And guess what? On those tiny little white-cord earbud headphones that make you look "trendy", 128kbps sounds fantastic. In order to get the best sound quality out of a higher bitrate file, one would have to use fairly high-end speakers. Most people just use the earbuds that came with their iPod, and for them, the sound quality is fine.

      If you're truly worried about sound quality, then you shouldn't be buying CDs, either. Most music is recorded at a higher sample rate than 44.1 kHz and a higher gain resolution than 16 bit (I'm not sure of the specific numbers, and it may vary by recording device-- audiophiles, help me out here); then it's downsampled to 44.1 kHz Red Book standard. Most music that falls in the "popular" genre (as opposed to "classical") is also heavily equalized with the gain cranked way up. As a result, the whole song falls within the top 4 bits or so of gain resolution, and tends to blare. Classical recordings are usually a bit better in the dynamic range category.

      Of course, to have fantastic sound quality you also need fantastic speakers, since they are actually creating the sound. High end speakers are not cheap.

      Unfortunately, CDs are the highest quality format that is currently available. I suppose a brand-new LP straight out of the package might sound slightly better than a CD, but that quality lasts about one play, until the needle has microscopically altered the tracks merely by scraping across them. Not to mention that in order to preserve that quality, one would be forced to record that LP (on its first play, mind you) on recording equipment with higher sample rates and gain resolutions that what's available in the consumer electronics market, which usually use 44.1 kHz, 16-bit. You would also have to find the music you like in LP format, and unless you are a DJ, that can be very difficult, if not impossible.

      I buy CDs and rip to FLAC, which is about the best quality I can hope for.

      --
      For security, the MD5 hash of this message and sig is 09f911029d74e35bd84156c5635688c0.
  11. The RIAA is representing some people by crovira · · Score: 3, Insightful

    who are best compared to kings sitting in chairs on the beach commanding the tide not to rise.

    It was entirely predictable too.

    Music is a pre-hominid, semi-simian, refexive action/reaction. It demands instant gratification. In the internet age, that means music delivered over the ether.

    Because of the medium, the scatter/gather packet distribution, the "priviledged communication" nature of the channel, the end-to-end control, podcasters are going to eat the lunch of the broadcastering RIAA represented.

    The fact that podsafe music is incredibly more effective at getting people's music out there cheaply and without requiring compromise by the artists, that the only lazy or stupid people will sign up with them.

    The RIAA will go away once enough of their members go broke, like the ticks on the necks of the vampire bats that are feeding off of the artists.

    The Pod Safe Music Network, Pod Cast Delivery Network (representing growing legions of 'indy' artists) and iTunes Music Store (representing the drying up pool of major label 'signed' artists and 'aggregating podcasts.)

    --
    MSBPodcast.com The opinions expressed here are my own. If you don't like 'em... Think up your own stuff.
  12. ...It seems that by Anonymous Coward · · Score: 3, Insightful

    ...file-swapping is always going to be prevalent and is only going to become more prevalent as we all become geeks. The reason legal downloading is gaining headway is because it is getting simpler and appealing to the older crowd (finally adopting new gadgets like mp3 players). It takes a certain amount of computer aplitute in order to efficiently file-swap, a skill that is only going to be more common in the future.

  13. Oh that greedy, greedy industry! by windowpain · · Score: 3, Insightful

    "But the industry, wanting to wring the maximum profit out of the consumer, remains fixated on piracy."

    Wow man that's terrible. Just like those greedy bastards who have bricks and mortar stores go after shoplifters.

    Look, the industry's attempts to combat piracy have been ill-advised and ineffectual. Sony's use of a rootkit, for example, was downright unethical; it's a "solution" they should have rejected. They knew or should have known it would damage their customers' computers.

    However, to condemn an entire industry because they're concerned about people stealing from them shows a level of moral retardation just as grave as Sony's.

    --
    Insert witty sig here.
  14. Stop pulling rank... by john-da-luthrun · · Score: 5, Insightful

    I don't see why the fact you're "an IP lawyer" should have anything to do with what side you're on. So am I, as it happens. So, for that matter, is Eben Moglen, and I don't seek him rushing to support the RIAA any time soon.

    This isn't about people being paid money they deserve - I don't have any problem with the record industry charging for their products, and I don't (generally) make (many) illegal copies of music or have any great sympathy for those caught putting 000s of tracks on file-sharing services

    The point is that though that the music industry is turning file-sharing and "piracy" into a scapegoat and using this to at best inconvenience, at worst rip-off their legitimate customers (or even compromise their computer systems - can you say, "rootkit"?). Copy-protected CDs, restrictive licensing/DRMing of music downloads (so that people moving from the US to Europe lose all their iTunes downloads, for example). Twenty years ago if you changed your hifi you didn't have to repurchase your entire record collection. Now? Oops, please tell me you didn't switch from an iPod to another make of "MP3" player? And whaddya mean you bought a copy-protected CD and now you want to listen it on your iPod? Go buy a downloaded version as well, you thief!

    The fact is that what makes money for the record companies is good music that people want to buy. It's the failure to find any really bankable, long-term, good quality acts that is the real problem for the record industry, but they prefer to make examples of a few "pirates" rather than address those deeper-rooted problems.

    This story only goes to underline this - find the right product, the right price and the right delivery mechanism, and people really do prefer to buy the legitimate goods rather than going for illegal copies.

  15. Sure, but that's the ROLLING STONES by Nerdposeur · · Score: 3, Insightful
    Not to point out the obvious or anything, but "Mick and the boys" happen to be one of the most successful groups of all time. That's like me saying, "Computer programmers don't need salaries; they can make their own programs and get filthy rich. Look at Bill Gates!"

    A more realistic example is a known but not super-famous group like They Might Be Giants. Sure, you can get all their stuff on P2P, but you also have the option of buying straight from them on their web site. I like them and want them to keep making music full-time, so I will choose the latter. And since I've only seen them in concert once, they'll end up making more money from me by selling music - which is their primary business.

  16. People Pay For Convenience, Not Music by Master+of+Transhuman · · Score: 2, Insightful

    I've said it a hundred times - people do NOT pay for music. They never have, except for the short period of time when music was only available on phonograph records and cheap cassette recorders were not available. Even then, hobbyists recorded music on reel-to-reel tape drives and exchanged them.

    People pay for legal download services only because using the P2P systems is so difficult (search for the music, join a queue, wait for five hours to download the file, get a crappy file, etc., ad nauseum, not to mention configuring the software in the first place, a task some people find difficult.)

    --
    Richard Steven Hack - This sig is TOO GODDAMN SHORT TO DO ANYTHING USEFUL WITH! MORONS!
  17. Re:My plumber explained it to me by NixLuver · · Score: 2, Insightful

    "It's a decent and light hearted analogy but I think there's a bit more to it than just cash flow."

    What the?

    If it's not about money, what *is* it about?