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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.'"

4 of 294 comments (clear)

  1. Blah blah blah. by SatanicPuppy · · Score: 4, Interesting

    If god himself passed down this information on gleaming tablets 20 miles on a side, the RIAA and the MPAA wouldn't believe it for a second. Likewise the reverse; downloaders don't believe that piracy hurts legitimate artists, and they won't no matter what the evidence says.

    Frankly, it's obviously somewhere in the middle. I doubt that p2p does much damage to music sales, but it has to have SOME impact...I mean, when I get some stupid pop song stuck in my head and I download it instead of buying it, that's a few bucks that won't go to the damn RIAA, and I have enough disposable cash that I might have bought it, if I had no other option.

    On the flip side, I tend to download songs off CDs I already own, so I don't have to get out the sharpie to scribble over the stupid data track, so I can rip it. That's the definition of a no damage situation.

    Neither side is ever going to compromise on this; the **AA's are as convinced we're screwing them as we are that they're screwing us. Eventually they'll just wither away and die due to changing distribution models, and that will be the end of that.

    --
    ad logicam Claiming a proposition is false because it was presented as the conclusion of a fallacious argument.
  2. Where is the study on how much CDs suck? by LibertineR · · Score: 4, Interesting
    I dont mean that current music is bad, I'm talking about having to shell out 14-18 dollars for a CD with maybe 2-3 decent song titles. I wonder when anyone is going to take notice on how much Apple is making selling individual song titles?

    The music consumer has wised up, and many of us sample music we are interested in on MP3, WMA, whatever, and find out what is good and what sucks BEFORE spending our money. When I find good music, I generally purchase the CD, but I'll be dammed if I am going to part with money for a disk full of B-sides.

    Record companies got greedy, when they could have made a fortune selling CDs for 7-10 dollars.

    Right fucking NOW, some stupid record exec is reading the report, and in his mind, sees it as another opportunity to RAISE prices.

    Fuck um.

  3. Re:The Original Report by Gr8Apes · · Score: 5, Interesting

    Yeah, that's right, the research concluded that "file sharing probably increases aggregate welfare." I'll bet if we all got drills & augers, we could get that into the brains of the people running the RIAA & MPAA. That's been one of the main facets of those opposed to the xxAA camps. However, this study mentions some symptoms without delving into them.

    File sharing enables more acts to be exposed to a larger audience. File sharing is probably hurting radio more than it is artists, as it becomes increasingly difficult to cater to the growing diverse tastes of what used to be their audience. Basically, I pose that file sharing is taking the place of radio to promote artists. Why do I say promote? If you've ever heard an MP3 or other compressed format played at a reasonable or louder volume on quality equipment, you wouldn't be asking.

    Control of musical output is being taken away from large conglomerates, and is actually being put back into the hands of the people. Over the course of the last 20 or so years, the FCC has allowed the independent radio station to become extinct as they were gobbled up mainly by one of 2 corporations: Infinity and ClearChannel. These corporations, namely ClearChannel as I have personally seen them destroy the selection of radio stations in my city, have attempted to create a one size fits all set of stations to pump music and [lack of] talent through to the chumps, um, audience. Via this control, and payola, for which I have no direct proof other than the absolute crap on the radio that has driven away large portions of their audience, they thought they were setup to just print money by promoting talentless acts with crappy contracts that would "sell" just because they promoted them.

    What happened instead is this internet thing and P2P, wherein people started sharing music, music that wasn't promoted, wasn't on the local airwaves, and thus not in the RIAA members's maximized profit model. It got even worse when sites like MySpace (yes, I have to give it some props) started serving as an alternative promotion source for bands.

    So there's much more to P2P and music sales than what these or any statistics show. Falling sales are not related to increased P2P. I'd argue that sales haven't fallen any more than they have explicitly because of P2P. Why? Take a look at the last 6 months of album releases. Can you name more than 2 albums of note? I can't. I haven't seen a single Rock/Alternative/Pop album I wanted in the past 6 months. Is it because there aren't any musicians out there? Naah, it's because tripe has been promoted and is all that's for sale.
    --
    The cesspool just got a check and balance.
  4. I know the effect it's had on my music purchasing by krunk7 · · Score: 4, Interesting

    Not much.

    I was never a huge music buyer or listener really, mostly I just relied on friends music collections to carry me through. Though I understand how some folks get completely wrapped up in their music collections, for me it was mainly background noise to what I was really focusing on. As such, a 1/2 decent radio station would suffice when no friends with massive music collections were around.

    Since the p2p downloading craze and the direct download craze that led up to it...though my music collection itself has increased quite a bit, my buying patterns are about the same. Essentially, I have my own personal perfect radio station.

    Conversely, I do directly attribute P2P with significantly increasing my spending in one area: live concerts.

    Though my effort/money put toward accruing music hasn't changed at all, my exposure to music has vastly increased with the ease of "collection" that p2p has brought. I've always loved a live show, so much so that it probably explains my aversion to recorded music. I love the little flaws in a live performance that gives the music a personality that is often stripped away by significant remastering at the recording studio.

    Since a show costs anywere from 10-60 dollars and I'm going to more then ever and in genres I never considered before.....I'd say the music industry is profiting form me more then ever.