Thursday, March 22nd 2007
Music CD sales in USA fall, piracy not to blame
While piracy may be to blame for the drop in sales of some forms of digital media, it certainly isn't to be blamed for all drops in sales. Music CD sales (not prices, unfortunately) have declined sharply over the past three months. In Q1 2006, 112 million music CD's were sold. This year, various record labels have "only" managed to sell around 89 million CD's.
However, most clouds do have a silver lining. Record companies are very happy to announce that they have sold a total of 288 million music tracks on the internet (legally), up from 242 million from last year. Legal music album downloads have decreased to 99 million sales from 119 million sales last year. This may be indicating that consumers are telling record companies that they really don't want to buy albums that only have a few tracks that they really want.
Source:
The Inquirer
However, most clouds do have a silver lining. Record companies are very happy to announce that they have sold a total of 288 million music tracks on the internet (legally), up from 242 million from last year. Legal music album downloads have decreased to 99 million sales from 119 million sales last year. This may be indicating that consumers are telling record companies that they really don't want to buy albums that only have a few tracks that they really want.
8 Comments on Music CD sales in USA fall, piracy not to blame
I don't like the DRM schemes that the studios have come up with, but I think its unfair to expect an artist to feel great about trying to live off a music career or a studio even wanting to produce the artist if that artist's entire album is only worth $2 (what???).
And about giving donations when you feel like. What if tomorrow when you went in to work, your boss said that instead of giving you a steady paycheck, they would pay you when they felt like out of a donation fund that customers funded whenever they felt like "donating" to your company.
No artist wants to share thier talent with the world if they are basically reduced to digital pan handling for the scraps that people feel like giving. The bad artists where their music isn't worth spit, they will either improve, be relegated to a few 99 cent downloads, or leave the market. If they are good however, they should be compensated for their work.
I'm not trying to start a debate about the merits of DRM or the evil practices of the music industry, but until you take and successfully live off a job where your customers "donate" monies to you when they feel like as opposed to paying you for your effort then you really should think about who you're taking from when you "try out" that song from the internet.
I personally will not buy a CD unless I can get it for under $10 after tax.
I also agree that the cheapest part of a cd is the plastic the music is on. The bulk of the cost by far is all the other pieces of the pie that have to get eaten (distribution, marketing, profit margins, and artist compensation).
Personally, I think the internet has the potential to give artists complete control over distribution as the cost of marketing on the internet is only pennies on the dollar for what the industry spends trying to sling plastic plates. Unfortunately, they (the artists) are igorant to this fact and so remain content with the scraps the studios throw their way while the studios get rich owning all means of distribution.
If enough artists of all music types (rock, rap, country, jazz, etc) got together and formed a cooperative directly selling thier songs on the internet, I think the price of songs would plummet while the artists would still be paid appropriately for quality work (good music).
I like the subscription model as I can download all the songs I want for a monthly fee. Even if I remove the DRM so that I can listen to the songs on my iPod, I wouldn't be uploading them on the web so the artist is still paid for his work. DRM sucks anyway.