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Study Finds P2P Has No Effect on Legal Music Sales

MBrichacek writes "The Journal of Political Economy is running the results of a study into P2P file-sharing, reports Ars Technica. The study has found that, contrary to the claims of the recording industry, there is almost no effect on sales from file-sharing. Using data from several months in 2002, the researchers came to the conclusion that P2P 'affected no more than 0.7% of sales in that timeframe.' 803 million CDs were sold in 2002, according to the study, which was a decrease of about 80 million from the previous year. While the RIAA has been blaming that drop (and the drop in subsequent years) on piracy, given the volume of file-sharing that year the impact from file sharing could not have been more than 6 million albums total. Thus, 74 million unsold CDs from that year are 'without an excuse for sitting on shelves.'"

16 of 294 comments (clear)

  1. Exactly by omeg · · Score: 4, Insightful

    I never believed that P2P would have a significant effect on the sales of records. Let's face it: most of us will simply go out and buy a record if we really want to have it. If we don't really want to have it, we may still pirate it. But we would definitely not go out and hand over a hunk of cash for it. Most of the music that we warez, I believe, would be the music that we wouldn't otherwise buy. Same goes for movies, games, everything.

    It's easy for the large publishers to complain and act as though their sales are declining due to the increasing amount of P2P networking, but you might as well say that global warming is the cause. Afterall, neither have ever been proven to have a huge effect on record sales...

    1. Re:Exactly by Mad+Dog+Manley · · Score: 5, Insightful

      I believe the reason for CD sales declining is far more simplier than "P2P caused it" or even "all new music sucks". Maybe the real reason is simply that the format is starting to die. I own dozens of CDs but I don't even play them anymore. I play MP3s on my computer or on a portable device (that conveniently connects to my home and car stereo on demand), or the very least listen to the digital radio stations on my digital cable (which also carries 15 local radio stations from the city where I live). 15 songs per cd? That's *so* 90's.

  2. Re:How bizarre... by jimstapleton · · Score: 3, Insightful

    Well, we can start with everyone who plays WoW... Some people like getting their favorite free *nix distros via P2P. Just like some pirates like getting their free *dows distro via P2P, except the former is legal.

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  3. Study is Wrong by phoenixwade · · Score: 5, Insightful

    Filesharing HAS caused a drop in CD sales.

    Because:
      A. File sharing has caused RIAA lawsuits
      B. RIAA lawsuits have pissed off customers
      C. Pissed off customers look for other things to buy instead of CD's.

    A->B->C so A->C

    On a more serious note.... This reminds me of the global warming debate.. First you have those that say it's happening and those that say it isn't. Then enough studies come out that Global warming happening becomes the prevailing idea. So the next debate is Well, humans are causing it/it's natural. and so forth.

    So we've seen the Cd sales are diminishing debate, CD sales ARE going down, now we're looking at why, the debate is File shareing / not file shareing / impact of file shareing.

    I will be quite happy when the debate turns to "Your artists are CRAP, CD sales is dropping because the consumer is moving to buy independent artists' work, where they can find decent music."

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  4. Give us something worth buying... by Elbowgeek · · Score: 5, Insightful

    That's the comment I got from various American youths. The music they are interested in has no long term value, unlike the Beatles/Stones/et al. Partly this has to do with the fact that most of modern pop is programmed on a cold computer and utterly devoid of real feeling; I get the feeling that while the kids are diggin' modern music at the same time they are unable to form a true connection to it, in the same way a human can't truly fall in love with a computer, because one knows it's an inanimate object at the end of the day. (And yes, I have read Isaac Asimov's robot story on the subject)

    When I listen to music I'm partly looking to be wowed by the performance of at least some part of the piece. Current electronically generated and produced pop has no real performances to speak of, or if there is one can't be sure whether it's a sample of some old record thrown into the mix.

    The point to all of this is that people now feel no reason to want to own the tracks they think they like (so that they can be listened to years down the road with fond memories) as music has become as commoditized and disposable as Gillette razors - only meant to be used for a certain period of time before being chucked in the bin.

    There's a lot more to the problem of course, but the above does play an important part. The record companies need to produce artists (and they are out there) who produce real music and do it well. Fiddling with MIDI settings all day isn't producing music - it's computer programming.

    Cheers

    --
    Who is this delectable creature with an insatiable love of the dead?
    1. Re:Give us something worth buying... by east+coast · · Score: 4, Insightful

      The music they are interested in has no long term value, unlike the Beatles/Stones/et al.

      Come on. The 60s and 70s didn't have fodder music? Please.

      When's the last time you listened to your Soft Machine albums? When's the last time you listened to Wendy Carlos? Or how about Iron Butterfly?

      Every era of music has trash and time washes it away to expose what of value is left. The Beastie Boys are the Rolling Stones of tomorrow. Bands like Iron Butterfly and Canned Heat are only selling on Ryko comps today. In another 20 years we'll be seeing the commercials for comps that have crap on it like "Whoop! There It Is" and "Who Let The Dogs Out" and people who are the same age as you are today are going to buy them and say the same thing about the music of 2027.

      It always bothers me that people claim there is no good music "like the stones" because they can't be bothered to give other music a try. I know if I only listened to my classic rock station the newest good music I would be hearing is The Clash too.

      Fiddling with MIDI settings all day isn't producing music - it's computer programming.

      Really? How about telling that to Tangerine Dream or Kraftwerk or Ash Ra Tempel? This type of thing has been going on for over 30 years, don't act like it's new. And if "fiddling with midi" is all it takes to sell an album you'd be doing it too. Just because a music is made with electronics doesn't make it easy. Granted that doesn't make it good either but there are tons of guys that "just decided to pick up a guitar" too. Some of them did well (like The Ramones and BTO*) and most ended up playing a few gigs for beers. It's really no different.

      * Before anyone bitches, let's at least be honest enough to admit that bands like BTO and Grand Funk were simple "good times" music and not really the height of talent.

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      Dedicated Cthulhu Cultist since 4523 BC.
  5. Without an excuse... by JoeCommodore · · Score: 3, Insightful

    Thus, 74 million unsold CDs from that year are 'without an excuse for sitting on shelves.

    You mean besides the non-music industry perception that they contain music people are not really interested in or are at a price people are not willing to pay?

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    "Enjoy what you're doing! If it becomes drudgery, you're doing it wrong!" - Jim Butterfield
  6. There is an excuse by Bullfish · · Score: 4, Insightful

    For all the CD's unsold and rotting on the shelves... they are assembly-line crap... like fast food for the masses, it is bland. Pay attention and you will see that a lot of what kids are listening to is... old fogey music! When I was a kid, I would never have listened to my dad's music because ours was so much better. Now, my son and his friends are hitting me up for ACDC, Led Zeppelin and many other old gems... in fact last night I turned him on to... the Cars!

    There is some good indie music out there, but the major companies shun it while pushing out their canned pap. This is what is on the shelves rotting (as it should). No wonder their primary source of funds seems to be lawsuits right now.

    No wonder the Police have chosen to reunite. The rockers with walkers are making a killing because the industry today is creatively bankrupt. Bring on Jagger, the Stones and their musical wheelchairs.

  7. Rots Your Brains by Doc+Ruby · · Score: 3, Insightful

    Their record sales plummeted because the music they're selling sucks. And because the music sold before is now available in much greater amounts, whether on "classic" (rock/R&B/80s/oldies) radio, much less destructible (than vinyl/tape) CDs, and even downloads that don't get lost as much.

    The music biz used to be mainly in the business of finding artists coming from the mass of people, trying them out before "focus groups" (live audiences) who selected themselves from the cultural word of mouth, and cultivating them for a decade or more. The artists getting the most continuing investment were those most successful in either a live audience, or record sales even in a regionally highly varied market, feeding back with radio play. A natural coevolution of the artists and the audience, when mediated best by the music biz people engaged into both.

    Now the biz thinks it's smarter than the market. Creating fake "artitst" who are really just spokesmodels in videos for a recorded product tied in with cobranded products like so much anime breakfast cereal. The model is to create as many products that can be most controlled as possible, within a narrow range of those styles best "understood" by the marketers, pushing more money than brains through the network of middleman connections, and maximizing the profit from anything that looks like it's "hitting". Meanwhile, these "smarter than the market" marketers are dumber than ever before, especially about music and the mass of people in the market, because the smarter ones have already fled the sinking ship a decade ago.

    It's like the factory farms that breed mad cow. No wonder the music sounds like a soundtrack to the cows' death dance.

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    1. Re:Rots Your Brains by RyoShin · · Score: 3, Insightful

      Their record sales plummeted because the music they're selling sucks.
      Not only that, but it is now easier than ever for an indie band to get sales and fame. So now the big labels are not able to force their usual 2/3s of the pie on them, since newer bands have a lot more leverage. Observe:

      RIAA company: "We'll distribute your CD and songs on iTunes, but we get 70% of the take."
      New band: "Whatever, I can use something like CDBaby and do the same for only a 20% take."
      RIAA company: "Buh... uh... won't you think of the children? And by that, I mean our children. How will they ever afford a new Hummer?!"

      Songs from (good) indie bands that do a lot of exposure are then picked up by the indie stations, and eventually make their way to the various ClearCrap stations who don't want to lose listeners to the stations that play more than the top 40s.
  8. albums vs. songs by bsomerville · · Score: 4, Insightful

    One possible flaw in the study is that consumers are often not interested in entire albums. If the data is being presented in album units, and most of the download traffic is around popular songs from those albums, that explains some of the discrepancy.

  9. Re:How bizarre... by pipatron · · Score: 4, Insightful

    I download a shitload of music and movies. Yet, I buy the music I want. The availability of filesharing has not affected the amount I spend on culture each month. If I bought everything I download, I would probably have to pay some $2000/month.

    When you say Everytime a new study come yet the results differs., take a look at the sources. All independent research has always shown that filesharing has not and does not affect record sales. All information that comes from the record companies says that they do. Who do you trust?

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  10. Re:How bizarre... by cloak42 · · Score: 4, Insightful

    The difference is that the RIAA and other similar industry reps will tell you that it affects sales for the simple reason that they view every download as a lost sale. What they refuse to admit is that in the vast majority of the cases where a song or album is downloaded, it never would have been a sale in the first place because the person wouldn't have ordinarily bought that album or song. By the RIAA's rationale, people would otherwise be spending hundreds of dollars more per year on music, which we all know is just not true. If there was no means for them to have free music, they would just not listen to as much music. What I never understood was why the RIAA thinks that people listening to less music is a good thing, regardless of the reason.

  11. Re:How bizarre... by inca34 · · Score: 5, Insightful

    I didn't see any parading, though I did see evidence that it hurts sales by no more than 0.7%. How does openly discussing causal relationships in economics with respect to P2P hurt the credibility of a /., a news website that's centers a discussion about a topic for us to hash about until we set the facts straight?

    Really, until you actually RTFA and tell me why they're wrong, I'll stick with the only person who has developed a point so far: TFA.

  12. Re:How bizarre... by cloak42 · · Score: 3, Insightful

    The fact you don't plan to buy something doesn't mean you're entitled to have it for free. Some people just want to justify music piracy and not paying artists for their work. They want something for free, because they're freeloaders. I wasn't making any judgment calls about the legality here. The fact remains that regardless of what the RIAA wants to say, one download does NOT correspond to one lost sale. That's the plain and simple truth, regardless of whether it's right or not.
  13. Re:How bizarre... by markbt73 · · Score: 3, Insightful

    What I never understood was why the RIAA thinks that people listening to less music is a good thing, regardless of the reason.

    Because the RIAA isn't about music. It's about money.

    Artists hate dealing with business. Businesspeople know this, so they'll gladly flock to the "aid" of artists, telling them, "You just go and be artistic. We'll handle the business end for you." The trouble is that this lack of business savvy on the part of the artists attracts the bottom of the business barrel, the least scrupulous, most ambitious, laziest get-rich-quick bastards ever to earn an MBA.

    They don't give two shits if you listen to music. They just want you to buy it, for as much as possible, as many times as possible.

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