Study: Falling CD sales can't be blamed on P2P

Declining CD sales can't be blamed on file-sharing networks alone, according to a new report.

The Paris-based Organisation for Economic Co-operation and Development (OECD) said Monday that digital music piracy is a problem, but other factors--such as the rise in the number of entertainment sources--are more likely to have had a significant impact on music sales.

"It is very difficult to establish a basis to prove a causal relationship between the size of the drop in music sales and the rise of file sharing. Sales of CDs, as well as the success of licensed online music services are likely to have been affected to some degree by a variety of other factors, for example physical piracy and CD burning, competition from other, newer entertainment products and faltering consumer spending in some markets," the report said.

While the report found a "pronounced" fall in overall global CD sales of 20 percent between 1999 and 2003, and a particularly large drop in CD sales in the U.S., some countries, including France, Germany, Japan and the United Kingdom, are actually experiencing steady or growing CD sales.

In addition, the OECD questioned the viability of some music download business models and warned that the music industry needs to find a balance between reducing online piracy and developing models that are attractive to consumers. The industry also needs to provide existing and new participants in the online music arena with a growing stream of revenue for the legitimate distribution of recordings, the report said.

"Online music providers still seem to struggle making profits at current prices, with demand growing from low levels and having to compete against unauthorized downloading," the report said. "In the current, low-volume market, digital economies of scale have not yet been realized. Some of the fixed costs of labels to produce artists stay essentially the same as before. Moreover, the digital distribution of songs is far from costless."

Andy McCue of Silicon.com reported from London.

[Bob_Barker]

Duh.

P2P is just the RIAA's way of following the American creed of "Blame everyone but yourself".

But nowadays the music industry faces competition from other forms of entertainment more than ever. Movies, games, etc. People can't justify buying an entire album for one catchy pop tune that's doomed to fall from existence in six months. That's probably why the NOW! discs sell so well.

Maybe if they started signing artists with talent and popular music wasn't the crap it is today things wouldn't be so bad.

Sure P2P isn't entirely blameless. I'm certain plenty of people use it to get free music but I think a lot of them, including myself, use it as a vessel to share and experience new things. If I like it, I buy it.

I just hope the RIAA focuses on reinventing their aging business model rather than supplementing lost profits by suing 12yr girls for downloading a Britney Spears song.

[Bob_Barker]

Duh.

P2P is just the RIAA's way of following the American creed of "Blame everyone but yourself".

But nowadays the music industry faces competition from other forms of entertainment more than ever. Movies, games, etc. People can't justify buying an entire album for one catchy pop tune that's doomed to fall from existence in six months. That's probably why the NOW! discs sell so well.

Maybe if they started signing artists with talent and popular music wasn't the crap it is today things wouldn't be so bad.

Sure P2P isn't entirely blameless. I'm certain plenty of people use it to get free music but I think a lot of them, including myself, use it as a vessel to share and experience new things. If I like it, I buy it.

I just hope the RIAA focuses on reinventing their aging business model rather than supplementing lost profits by suing 12yr girls for downloading a Britney Spears song.

[raitchison]

Yeah I'm sure the RIAA will pay attention to this

This report isn't saying anything that hasn't been said before. Unfortunately it can be said over and over again and the record companies will continue to ignore it and lame P2P for the fact that the record company execs could only buy one Ferrari last year instead of two.

This all started around 2001 when CD sales took a nose dive and of course the RIAA said it was all Napsters fault.

Of course there was a study done (I'd link to the study but haven't been able to find it online in a couple years) that showed how even if you showed every individual song downloaded from Napster as a lost CD sale (wildly overestimating the impact of P2P downloading on CD sales) that it did not come close to accounting for the drop in CD Sales.

The real reason is the .com bubble burst and the ceconomy downturn around that time. When people were not being paid six figures from coolwidgets.gone they natuarlly slowed or stopped spending on luxury items like CDs. Obviously not many people who were out of work altogether were seeing it as important to drop $18 for the latest Britney Spears CD.

[NWLB]

By the time the RIAA manage, if ever, to stop...

...current downloading, they will find themselves dealing with something vastly harder to stop. I'd bet money that in five to ten years people will be networking their systems wirelessly, and the old methods of tracking things will be impossible.

Or I could be totally wrong, but I'd also bet downloading decreases not because of the RIAA's efforts, but out of bordom with the entire process.

Students will be trading burned CDs in dorms and with friends forever.

NWLB
****
http://www.nwlb.net

The RIAA and MPAA will...

Neither the RIAA or MPAA will ever buy this or any other report that says piracy isn't the sole problem. They can't allow it. They need piracy and P2P to be the sole problem so they can continue to get the brain dead politican's in this and other countries to continue to change the laws to suite thier needs.

Robert

[raitchison]

Yeah I'm sure the RIAA will pay attention to this

This report isn't saying anything that hasn't been said before. Unfortunately it can be said over and over again and the record companies will continue to ignore it and lame P2P for the fact that the record company execs could only buy one Ferrari last year instead of two.

This all started around 2001 when CD sales took a nose dive and of course the RIAA said it was all Napsters fault.

Of course there was a study done (I'd link to the study but haven't been able to find it online in a couple years) that showed how even if you showed every individual song downloaded from Napster as a lost CD sale (wildly overestimating the impact of P2P downloading on CD sales) that it did not come close to accounting for the drop in CD Sales.

The real reason is the .com bubble burst and the ceconomy downturn around that time. When people were not being paid six figures from coolwidgets.gone they natuarlly slowed or stopped spending on luxury items like CDs. Obviously not many people who were out of work altogether were seeing it as important to drop $18 for the latest Britney Spears CD.

[NWLB]

By the time the RIAA manage, if ever, to stop...

...current downloading, they will find themselves dealing with something vastly harder to stop. I'd bet money that in five to ten years people will be networking their systems wirelessly, and the old methods of tracking things will be impossible.

Or I could be totally wrong, but I'd also bet downloading decreases not because of the RIAA's efforts, but out of bordom with the entire process.

Students will be trading burned CDs in dorms and with friends forever.

NWLB
****
http://www.nwlb.net

The RIAA and MPAA will...

Neither the RIAA or MPAA will ever buy this or any other report that says piracy isn't the sole problem. They can't allow it. They need piracy and P2P to be the sole problem so they can continue to get the brain dead politican's in this and other countries to continue to change the laws to suite thier needs.

Robert

[baldheadben]

CD SALES DOWN

Could it be that sales are down because there just isn't that much quality music worth buying. I think the availability of talent or the lack thereof is a good reason for the downturn in sales.

[Steven N]

And more...

Personally I haven't downloaded practically anything, simply because I don't care and I am too lazy. I am not even inclined to download it for free, why would I buy it?

And then, on those rare occasions that I find something that is worth spending my hard earned Euros on, I end up with a CD that is totally useless because of all the copy protections on it.

I decide where I spend my money on. If the big shots think I am not spending enough, then they should provide me a good reason to do so, and it all starts with quality and compatibility...

I am fine by supporting good artists by buying CDs, but I am not going to spend money on a product I cannot use.

[baldheadben]

CD SALES DOWN

Could it be that sales are down because there just isn't that much quality music worth buying. I think the availability of talent or the lack thereof is a good reason for the downturn in sales.

[Steven N]

And more...

Personally I haven't downloaded practically anything, simply because I don't care and I am too lazy. I am not even inclined to download it for free, why would I buy it?

And then, on those rare occasions that I find something that is worth spending my hard earned Euros on, I end up with a CD that is totally useless because of all the copy protections on it.

I decide where I spend my money on. If the big shots think I am not spending enough, then they should provide me a good reason to do so, and it all starts with quality and compatibility...

I am fine by supporting good artists by buying CDs, but I am not going to spend money on a product I cannot use.

[Fray9]

Shoot yourself in the foot

You know.. I wonder if the RIAA has ever stopped to consider that all their crying "wolf!" over P2P and how their artists are going broke because of it might have something to do with why all the good new talent is going to independant labels or just staying out of the music industry altogether?

Talk about shooting yourself in the foot.

[Fray9]

Shoot yourself in the foot

You know.. I wonder if the RIAA has ever stopped to consider that all their crying "wolf!" over P2P and how their artists are going broke because of it might have something to do with why all the good new talent is going to independant labels or just staying out of the music industry altogether?

Talk about shooting yourself in the foot.

RIAA is getting desperate

Consider this: In 1997 I was a freshman in high school and the idea of a CD-ROM in your computer was just an abstract idea. The record companies must have loved the era before that when CD's replaced tape and there was no inexpensive way for consumers to get around paying $18+ per CD. We all know the routine..."Man, i really like that new song but i heard the rest of the album sucks...oh well, i guess that's the price to pay." Fortunatly for us, the consumer, times have changed, drastically. The internet took off, Napster opened pandora's box (although i was already soothing my music needs via mIRC), and the proverbial cat is out of the bag....and then some. Instead of adapting to the rise of Napster, the RIAA waited until it spun out of control. We all know the story, RIAA sues, Napster shut down because of centralized story. Instead of take on what could be a huge business potential, online music sales, they chose to challenge the very people whom they want to extract money from. RIAA, you are scrambling to come up with a plan and it's not looking good for you. On another note, this story touches on something I have said all along. The 90's was a great time for music of all genres. It showcases bands such from Nirvana and Pearl Jam to Snoop Dogg's Doggystyle (the era of great hip hop). Today we are offered teeny-bopping, no talent, thoughtless lyrics, manufactured bands, and just plain crap for music all around. I, for one, will go buy a CD when it is a band I know....and i know the CD is worth it. The RIAA needs to understand and accept that its day of unchallenged rule is over and gone. There are ways, lots of them, to get music illegally. The RIAA needs to A) give the masses good quality music, not American Idol BS Kelly Clarkston or Britney Spears B) Find a unique way to offer this music at a lower price and online and CD as well C) Appeal to the masses, get on their good side and understand that online music pirating is here to stay, find a practical way to deal with it. Suing everyone and their mother will only bankrupt you and **** us off.

RIAA is getting desperate

Consider this: In 1997 I was a freshman in high school and the idea of a CD-ROM in your computer was just an abstract idea. The record companies must have loved the era before that when CD's replaced tape and there was no inexpensive way for consumers to get around paying $18+ per CD. We all know the routine..."Man, i really like that new song but i heard the rest of the album sucks...oh well, i guess that's the price to pay." Fortunatly for us, the consumer, times have changed, drastically. The internet took off, Napster opened pandora's box (although i was already soothing my music needs via mIRC), and the proverbial cat is out of the bag....and then some. Instead of adapting to the rise of Napster, the RIAA waited until it spun out of control. We all know the story, RIAA sues, Napster shut down because of centralized story. Instead of take on what could be a huge business potential, online music sales, they chose to challenge the very people whom they want to extract money from. RIAA, you are scrambling to come up with a plan and it's not looking good for you. On another note, this story touches on something I have said all along. The 90's was a great time for music of all genres. It showcases bands such from Nirvana and Pearl Jam to Snoop Dogg's Doggystyle (the era of great hip hop). Today we are offered teeny-bopping, no talent, thoughtless lyrics, manufactured bands, and just plain crap for music all around. I, for one, will go buy a CD when it is a band I know....and i know the CD is worth it. The RIAA needs to understand and accept that its day of unchallenged rule is over and gone. There are ways, lots of them, to get music illegally. The RIAA needs to A) give the masses good quality music, not American Idol BS Kelly Clarkston or Britney Spears B) Find a unique way to offer this music at a lower price and online and CD as well C) Appeal to the masses, get on their good side and understand that online music pirating is here to stay, find a practical way to deal with it. Suing everyone and their mother will only bankrupt you and **** us off.

[skeptik]

but what about radio?

Something nobody's addressed yet:
Maybe music sales are down in part because radio sucks so bad these days. Personally I haven't listened to any commercial radio (Public Radio alone for me)for 2-3 years. I just can't stomach the souless, 3 song rotation, generic cloned format that every radio station on the continent broadcasts these days. Ever since the change in FCC regulation that expanded the corporate influence and ownership and lead to the death of the local DJ personality and the rise of centrally programmed playlists, radio has held no interest. OK, there are a few decent bands on the radio, but tell me why when tuning into the local "cutting edge modern rock" station I hear the same song 3 times in one day's commute along with the same heavy rotation staples I heard when I tuned out over 3 years ago. Yeah, The Red Hot Chilli Peppers songs rock, but let's face it, if I didn't buy the CD 5 years ago, I'm not going to go out and buy it today. And even if I went out and bought every album in rotation, that would still add up to what, 3 CDs per month?
No decent source for new music = no new interests = no new CD purchases. Heck, I don't even download much anymore... just not much that peaks my interest. I'm sure it's out there, but how to find it in corporate america?
Add into the mix the complaint common - that most CDs are pop ear candy with 1 or 2 good songs and a lot of bad filler and it certainly isn't very tempting to go spend $18 for a CD that I can't rip into MP3s or copy for my car.
Bad promotion, Bad content, and Bad delivery mechanisms... no wonder sales are down.

[skeptik]

but what about radio?

Something nobody's addressed yet:
Maybe music sales are down in part because radio sucks so bad these days. Personally I haven't listened to any commercial radio (Public Radio alone for me)for 2-3 years. I just can't stomach the souless, 3 song rotation, generic cloned format that every radio station on the continent broadcasts these days. Ever since the change in FCC regulation that expanded the corporate influence and ownership and lead to the death of the local DJ personality and the rise of centrally programmed playlists, radio has held no interest. OK, there are a few decent bands on the radio, but tell me why when tuning into the local "cutting edge modern rock" station I hear the same song 3 times in one day's commute along with the same heavy rotation staples I heard when I tuned out over 3 years ago. Yeah, The Red Hot Chilli Peppers songs rock, but let's face it, if I didn't buy the CD 5 years ago, I'm not going to go out and buy it today. And even if I went out and bought every album in rotation, that would still add up to what, 3 CDs per month?
No decent source for new music = no new interests = no new CD purchases. Heck, I don't even download much anymore... just not much that peaks my interest. I'm sure it's out there, but how to find it in corporate america?
Add into the mix the complaint common - that most CDs are pop ear candy with 1 or 2 good songs and a lot of bad filler and it certainly isn't very tempting to go spend $18 for a CD that I can't rip into MP3s or copy for my car.
Bad promotion, Bad content, and Bad delivery mechanisms... no wonder sales are down.