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RIAA Almost Down To Pre-Napster Revenues
from the tiny-violin dept.
...they don't have Napster to kick around anymore.
For yesterday's press release, the RIAA commissioned a survey by a research firm to prove that music-downloading is to blame, but all they tell us about it is that "23 percent of surveyed music consumers say they are not buying more music because they are downloading or copying their music for free." No more details provided, no link to the survey's raw numbers. So what does this mean? I guess 77 percent are buying more music because they're downloading it for free?
To put the new sales figures in perspective, a look at the big picture will be helpful. Free music-trading software had been in serious trouble since mid-2000. Despite indications that music-trading was helping sell CDs, the labels forced Napster to implement a name-blocking scheme. We ran a story in March 2001 pointing out that its traffic had fallen by 60%.
Then SF Gate ran a nice story last August, pointing out that declining RIAA sales seemed to mirror Napster downloads:
"At this point last year, with Napster in full swing, record sales were up 8 percent from the previous year. This year, sales of new albums -- not including established catalog titles -- are down 8 percent. That's quite a pendulum swing."
Sure, other file-trading software has taken Napster's place, but at this point it's fun just to watch the industry limp around after shooting itself in the foot.
Not that it's really hurting money-wise. All this week's numbers mean is that the RIAA's total revenue has declined almost to 1998 levels. In 1998 they made $13.71 billion; after peaking in the mid-$14-billions, last year they made $13.74 billion.
This probably is due party to the crummy economy, partly to their failure to find any new sound to co-opt and mainstream recently, and partly to lack of big artists releasing megahits like they did in 1999. You know music officially sucks when the labels have to pay someone $28million not to sing.
Oh, and partly due to the RIAA raising CD prices by $1.16, which is $0.25 over and above inflation (which has been higher than wage growth lately anyway). CDs are 94% of their revenue. Most industries, faced with declining sales, try lowering their prices. Not this one.
I've got two pieces of advice for the RIAA.
The first is to stop pissing off your own artists so much that they blow off the Grammys and throw their own party just to stick it to you. The musicians and singers are the ones making you rich. I know you think they're all interchangeable, but if you alienate them enough, when a new technology gives them an edge, they'll drop you like yesterday's sound.
The second is to reread Robert Heinlein's very first story Life-Line:
"There has grown up in the minds of certain groups in this country the notion that because a man or corporation has made a profit out of the public for a number of years, the government and the courts are charged with the duty of guaranteeing such profit in the future, even in the face of changing circumstances and contrary to public interest. This strange doctrine is not supported by statute or common law. Neither individuals nor corporations have any right to come into court and ask that the clock of history be stopped, or turned back."
Stupid... (Score:4, Insightful)
Stupider (Score:4, Insightful)
Parent
Re:Stupider (Score:5, Interesting)
Anyways...DVD's are at a turning point and there is a split in the ranks of the movie studies about how to handle DVD's inthe future. Extra bonus material is starting to cost way too much becuase actors and directors are starting to have pay for that bonus material getting written into contracts. So that extra 3 hours of behind th scense footage is now going to start costing studios real money to produce becuase the talent knows thats a revenue stream for the studies and they want a fair cut.
Also the licensing deal with BlockBuster is coming up for renewal....and it looks like BlockBuster isnt going to renew. The deal let blockbuster get advanced distribution of movies for rental before they were available for commercial sale...and the studies got a percentage of the rental take. Now it seems both sides of that deal are backing off. The studies think getting titles out quicker for sale is a good idea...and blockbuster is looking at the lower cost of stocking DVD making up for any lost revenue garnished by having a rental only window before full release. Both the studies and BlockBuster think they can make more money by selling cheaper...
More interesting still Warner Bros. is looking very hard at dropping the price of their DVD catalog through the floor...the idea being to get people to buy a DVD like they buy magazines in places like Walmart. Part of the reason is a lessoned learned trying to watching the record studies fight to keep control. If the price is low and reasonable...do people have less incentive still and more incentive to pony up the money....it seem like someone in the movie buz has woken up to the reality of file swapping...its always going to be there, the question is can you encourage people to buy instead of steal. If the DMCA is the stick....are $3 DVD's sitting in the checkout racks of your local Walmart the carrot?
-jef
Parent
Movies vrs Music (Score:4, Insightful)
I'll still copy and even share the movies I buy but I buy far more. I have a bootleg copy of Harry Potter but I still plan on buying it on DVD when it's released. Because of the download size of LotR I decided to wait for the DVD rather than downloading it but I wouldn't have had I still had broadband. Not only does price matter but also release schedule. The studios need to understand that the DVD should be available as soon as the movie is in theatures. In many cases we'll still go to the theature.. for the experience.. despite the fact we own the movie already. Afterall many of us go watch good movies more than once at the theature anyway.
One more thing music could learn from movies is that they need to release more than one version of a CD. A cheap version that is nothing but the CD for those who are satisfied with that and something more along the lines of a collectors edition later that might have extras such as a cool box (Rocky Horror Picture Show has an awesome DVD box), lyrics, information about the band, maybe a DVD of the music videos, etc. People will buy a product twice if the first time is a good deal and the second time offers stuff a 'true fan' will crave. Movie studios seem to understand this better than the music industry. The Phantom Menace Collectors Edition was also a nice release.. the inclusion of the film clip etc was very cool IMO and it probably cost them less than a nickle.
If movies, music, and games would drop to $3/each I might buy 10+ a week (I buy 1-2 now) and would be much less likely to bother downloading them. They have to let me play them on whatever device I want though. If I can't play it in Linux and mess around with editing them etc then I'll go back to ripping and burning.
Parent
Re:Stupid... (Score:5, Insightful)
Now, let's play with these figures
Average price per CD (1998) = 13.47
Average price per CD (1999) = 13.65 (+1.33%)
Average price per CD (2000) = 14.02 (+2.71%)
Average price per CD (2001) = 14.64 (+4.41%)
So...
The more theirprices will increase, the less people will pay.
End of debate
Parent
Downloading Music (Score:5, Funny)
Re:Downloading Music (Score:5, Interesting)
Pop quiz (pun intended):
How much had did that lady spend on music last year before discovering Kazaa?
If your answer was "zero", explain how the RIAA can have "lost" any money from her non purchases this year.
You know, when the Soviet Union was coming apart from within, and they finally admitted that it was farcical to try and control demand for products, we all nodded smugly and went "Uh huh, but of course". We laughed at the notion that you can decide how many and what color of cheap plastic toothbrushes to make five years in advance, on the basis that people will only demand the shoddy, expensive products that you produce.
Strangely, we blithely ignored the fact that the same model was alive and well in the USA with music. A (de facto) single huge conglomerate decided how many albums we would buy, and the "artists", the content, and the price, all in advance. They expected that demand would match the predetermined supply.
And then we learned the Soviet lesson. Street vendors started selling toothbrushes more cheaply than the state shops. Some of them were even better quality than (gasp) the cheap plastic state approved ones. It was illegal, but they were massively popular. And over here, we started to see guys on the corner giving music away. It was illegal, sure, but it was undeniably popular. We, the People wanted it.
Strangely, the Russians (nee Soviets) adapted. They deregulated. They said to the toothbrush sellers "Go ahead, supply the demand. Come in out of the cold, run the shops, pay taxes. Everybody wins."
We haven't got there yet. We're still at the stage of trying to stamp out street corner trading by making street corners illegal. It's farcical, and it will look increasingly so with hindsight. We need to take a look at the Russian model: if you criminalise demand, all you are doing is spending a lot of time, effort and money into turning a lot of people into criminals. Far better to bring it in out of the cold, ask We, the People what we actually want, and come to a fair compromise.
Please don't respond with the childish "We want free music, so there can't be any compromise.". Russians want free toothbrushes, but they're happy to settle for paying for convenient access to a wider choice of better toothbrushes. Similarly, we want free music, but at the moment, our choice is free music, expensive CD's, or a tiny selection of expensive and crippled digital tracks. Give us the opportunity to buy only the tracks we want, in high quality, without idiotic content control, and without paying for the priveledge of having them marketed to us, and we might find out that we actually still like buying music after all.
Parent
Re:Downloading Music (Score:4, Insightful)
If we created a P2P tool that had a real referral system and a way of promoting new music, that would be one thing. Instead, we have a system where you must know what you're looking for before you find it. We still learn what music we want to hear from the Radio and from MTV; we just use P2P technology to get it cheaper/for free.
P2P should be replacing the advertising channels. Instead it's trying to replace the retail channels.
And that really is illegal.
Parent
MTV, radio, downloads, and pay-for-stream (Score:4, Interesting)
I dunno about you, but I gave up on MTV, it just sucks too much. I also don't listen to the radio too much, it's just more of the same crap that's on MTV. If you want to find a new artist who's any good, about the worst place to do it is MTV or the radio.
Mostly I find new music from referral from friends. "Hey, check this out." That used to be done by going out to a bar and listening to a band, something I don't really have the time for these days. These days someone sends me an MP3 clip. And you know what? If I like it, I first try to see if I can buy it straight from the artist (many many small bands sell them off their own websites). If I can't do that, I try Amazon. Because you can bet your bottom dollar that the cool stuff isn't at Best Buy.
Outside of those kinds of referrals, I've subscribed to an actual (gasp) pay-for-stream service, RealOne. Their commercial-free genre-based streaming system is worth $10/month; terrific for background noise.
But having used RealOne for a few months now, I can see places where their model is seriously incomplete. For one, if I like a clip it's a pain to go listen to it again or to go listen to the whole album. There's no way I can forward a reference to the clip to someone so they can hear it too. There's a link to Amazon to buy the album, but no way to buy it and get it on MP3 immediately and the album delivered later.
These companies really need to use a mixed model to build a strong business. You need streaming content for "browsing". You need referral services for audience building. You need purchasing features for retail. And, this being the internet, you need immediate gratification so that when you buy the album, you have it /now/. And if they're going to charge CD prices for MP3 content, they're going to have to send the CD too.
Parent
Re:Downloading Music (Score:4, Informative)
46% off all filesharers are over 35, and 18% are over 45.
What is interesting is the market data that can be gleaned from those two seemingly innocuous numbers. These are people with an income and that have disposable income to spend. The conclusion has to be reached that the market is not meeting the needs of the consumer, and they find a way to meet those wants and desires.
Parent
Re:Downloading Music (Score:4, Interesting)
Then when file sharing popped up, I had friends ICQ'ing me tunes "hey listen to this", I'd listen, like it, then go buy the CDs. I *do* rip them to my house's file server and copy them to work to listen there. Point being, exposure through alternate channels has caused me to start buying CDs again.
Some stuff I've purchased recently (remember, I'm 42) includes, Rage, Limp Bizkit, Dream Theater, Dishwalla, Satriani, and a bunch of others I would have never been exposed to any other way...
Remember, I'm an old fart. We don't listen to music on the radio when in the car, we listen to lame right-wing talk show hosts or motivational tapes trying to convince ourselves that we still have "it." So how do we get exposed to new music?
Parent
The economy blows (Score:5, Insightful)
I wonder what business-school they went to (Score:5, Funny)
exec2: Lets fight them by raising prices.
exec1: Yes, that will surely work.
Re:I wonder what business-school they went to (Score:5, Funny)
That's unfairly trivialising what was surely a highly complex debate:
exec2: It will only work if we cripple CD's so that the average consumer will not be able to copy their legally licensed tracks to portable digital formats. ...thereby... inflating the apparent amount of piracy out there and making it easier for us to cook up "research" that justifies us demanding that our honest and uncorrupt policians pass laws mandating content control in every piece of digital hardware and software in the civilised world! My god! How do you come up with these brilliant idea.
exec1: But won't that just encourage them to illegally download tracks that they legally own?
exec2: Thereby...
exec1:
exec2: Lots of high quality crack, and plenty of blowjobs from fifteen year old wannabe starlets.
exec1: Aah, I wondered what the sucking sound was.
exec2: Oh no, that's just my pet Senator, suckling on the nourishing Milk of Evil dribbling like acidic bile from my wizened teat. Yes honey, you keep drinking it down, there's plenty more where that came from, if you'll just sponsor this SSSCA bill for momma.
I swear, that's how it went.
Parent
Re:I wonder what business-school they went to (Score:4, Interesting)
The RIAA is not trying to "keep up with a loss." They are still way in the black... Their complaint is that they are no longer at their "all-time high."
We have been in the midst of a rough economy, and as another poster correctly pointed out, luxury items (Such as CDs) are the first things that people stop spending money on.
The RIAA has two choices when it comes to altering their pricing in such an economy, and they chose incorrectly. When demand is down, you cannot raise the price and expect it to have a positive effect on the bottom line.
If, on the other hand, they had chosen to cut their prices to $10.00 / CD, maybe people would have decided that their expendable income (which, to reiterate, is in shorter supply these days) would better better spent on a CD than a Movie ticket.
Sure, their margin would have dropped, but their revenue (now derived from volume) would go up.
Would you rather sell 100 units at 70% profit, or 1000 units at 60% profit?
Parent
Napster = CD sales (Score:5, Interesting)
Its NOT about CD sales at all (Score:5, Insightful)
Now artists will be able to command MORE money.
Today, I watch RAP on TV and hear it on the radio and realize they are forcing complete garbage on me. 95% of RAP is total trash. Yet they still sell this trash because they force it down your throat.
This is what the RIAA wants.
1. they go find a no name artist.
2. Sign him/her to an abusive contract that he/she will agree to out of desperation or necessity.
3. He/she drops a hit record and the RIAA takes all the profits (see 2).
4. By the time he gets name recognition and can sign a quality contract, the RIAA wants him to be washed up so they can push their NEW no name artists.
So its not about CD sales at all. Its about power. Its just like any other industry. If you can flood the market with artists, their salaries will drop. But napster will allow us to filter to the songs and artists we like, and IGNORE the trash we dont, sending salaries for those artists who remain right back up.
Parent
How about the source material?! (Score:5, Insightful)
Tell me you instantly want to go out and buy the albums groups are hawking. The music is either pablum for the teen masses, a la Britney Spears, pseudo-intellectual neo-sensitive grunge like Creed, or mindless, repetitive breakbeats with woman singing, 'ooh, ooh baby' underneath it.
Not inspiring, is it? There's good music being made, but it's not being marketed. Maybe the RIAA hasn't got it through their inscrutable little heads that people don't want the same shit they've been given for decades! People want intelligent, thought-provoking, emotionally engaging music. Meanwhile, this crap is pushed on it, and frankly, I think the CD consumer is starting to wise up and decide it's just not worth the $15 to buy the CD.
Good job, RIAA. Keep it comin'. Meanwhile, I'll find my niche music in the corners of the Internet where you'll never find it hiding.
Re:How about the source material?! (Score:5, Insightful)
No. YOU want "intelligent, thought-provoking, emotionally engaging music". People, as a whole, want Britney Spears. Or to be more correct, they want the cd of the music they keep hearing on the radio / video hits. The big boys know this, and they love it. Whatever they feed us, we as a group eat up. Until this changes, the RIAA/MPAA will just tighten their grip on the public and their devices.
Parent
Re:How about the source material?! (Score:5, Funny)
When did that start?
Parent
But are people file trading less ? (Score:3, Interesting)
progs like morpheus and audiogalaxy are just as easy to use as napster, they may not have quite the reputation that napster had but I reckon most people who were file trading three yaers ago are probably still doing it today.
I know a lot of people are getting pissed off with napster now they have introduced their subscription service but they were originally the best. Morpheus is fine for anything popular (spears/nsync/etc.) but bad for the rare and obscure. When napster was at its peak you could find those kinds of songs.
Duh... (Score:5, Insightful)
With ~5.6% people unemployed, and cut backs of course... WHERE DO YOU THINK WE WILL GET THE MONEY TO BUY $18 CD'S!!
Thank God I'm into older stuff now. At least those are a little cheaper...
Meanwhile (Score:5, Informative)
Get a fork, this goose is almost cooked (Score:5, Informative)
On January 9th, the RIAA lays off 16 employees, including Karen Allen, their "Internet Evangelist"
The Recording Artists Coalition announced fund raising concerts to take place the night before the Grammy's to raise money to fight the recording industry for fair contracts and accounting oversight. The concerts sell out.
The Department of Justice investigation into antitrust issues continues.
The EFF steps up to defend Morpheus as having substantial non-infringing uses.
The Supreme Court decides to hear the case of Eldred vs. Ashcroft (started out as Eldred vs. Reno) to determine if the retroactive Copyright Term Extension Act is constitutional.
The Second District Court of Appeals reinstates the Chambers vs. Warner Brothers Case saying the judge considered evidence he shouldn't have. (this is the watershed case for older artists)
Webcasting rates are set, most likely sending almost every webcaster offline, including non profit and college stations. Rates are retroactive to 1998. The webcasters have 30 days to pay after the rates are adopted.
Suncomm (Media Cloque) and Charley Pride's record label settle the consumer case brought by consumers over "protected CDs", agreeing to clearly label the CD as incompatible with DVD player, Computer CD Players and portable CD players.
Napster Judge Marilyn Hall Patel hands the RIAA a stunning defeat in a surprising turn around, by allowing Napster to do discovery on the copyrights the RIAA says they own, appoints a "Special Master" and gives the RIAA three weeks to prove they own the copyrights and that they are in fact "work for hire". (which the Recording Artists Coalition says they aren't) She also allows discovery on possible misuse of those copyrights to stifle competition to MusicNet and PressPlay.
Filesharing is at an all time high.
The RIAA releases figures showing that CD shipments are down 10.3%, but sales are only down 2.3 % in dollars.
Five songwriters file suit in LA District Court over record club sales and lack of accounting oversight.
California Senator Kevin Murray plans to introduce a bill this year to penalize record labels that purposely underpay royalties, this is in addition to the bill on the 7 year contract limitation. THE EFF and 4 law school clinics launch chillingeffects.org to educate internet users to their rights online.
RIAA forms the California Music Coalition to fight against artists rights. Organizing support from people who are subject to the 7 year contract limitation in CA., the same rights the artists want.
What the RIAA really wants (Score:5, Insightful)
It may sound strange or conspiracy minded, but look at the way most of their press releases are written. Their releases make liberal use of the words, such as "piracy" and "illegal."
The RIAA is not just looking for the courts to shut down any site that they deem a danger to their continued profitability. They are looking for the government to give them to the power to do something about it themselves.
Re:What the RIAA really wants (Score:5, Insightful)
You forgot to mention that they are protecting the National Economy (ergo, the Free Market, ergo the Free World), and (in the case of the MPAA) they're beseiged by filthy foreign pirates flooding the country with stolen DVD's and such.
I agree with you absolutely, and have done since about 1995, when them DMCA was just a glint in a crack addled lobbyist's eye. Back then, this was crazy talk. When the DMCA passed, we gasped and laughed and thought it would never stand, and largely missed the point that the DMCA was never the final goal, just a means to generate very public failed attempts to stop the Evil Pirates. We couldn't imagine anything worse than the DMCA, so we (largely) assumed that this was as bad as it could get, and that we could beat the DMCA by fighting it.
Then the SSSCA arrived, put a toe in the water, and slunk off to wait for the propaganda to soften us up. I think that was the catalyst that prompted a lot of people to realise the long term plan.
Hear this clearly: the music industry lobbyists aren't stupid. Greedy, ruthless, soulless. But not stupid. They know they can't control the market given current technology. They know they can't stop street corner swapping by making street corners (P2P services) illegal. The goal from day 1 has been to demonstrate that they can't control it, because of that pesky old assumption of innocence thing.
So, here comes the SSSCA. While we debate whether the DMCA was too far, the lobbyists whisper in their bought politicians' ears that the debate is really how much further should we go?. If we let people have hardware that allows them to copy data, of course they're going to copy it. I mean, politicians are corrupt and greedy, record industry lobbyists are corrupt and greedy, so everybody must be corrupt and greedy. Offer a roofied starlet to a Senator, and the question isn't "Should I fuck her up the ass?", it's "Can I fuck her up the ass without getting caught?". Why should Joe Public be different?
I personally think that the RIAA must be really pissed off with P2P figures right now. I mean, they never intended to win the case against Napster. The whole idea was to show that it was unwinnable, that they needed extra powers. Their lawyers got out of hand, and forgot the goal. And now we see that P2P figures match CD sales. They can't spin it otherwise. They want to show P2P taking off while sales plummet, but we just stupidly keep on buying the CD's when there's anything decent to buy, and only sharing music when it's worth sharing. Damn our honesty!
Oh, what's the use? We've been over this so many times. Our politicians are so endemically corrupt that we've stopped even caring. The SSSCA will be bought and forced on us before Joe Sixpack knows what's happening. A small core of us will say "Told you so," but that'll be cold comfort.
Hey ho. Buy the biggest drives you can, while you can. Stock up on blank CD's and DVD's. Enjoy our brief Golden Age of being given the choice of "easy and cheap but criminal" or "restrictive and expensive but legal" music purchases, before it becomes a choice between expensive crippleware or nothing. Hey fucking ho.
Parent
My advice for musicians (Score:4, Insightful)
Anyway, lots of technology exists that could easily stop the bottleneck that limits feedback between consumers & the music business. I know, because I sell (some of) it for a living...
JMR
Classical Music (Score:4, Insightful)
Thank God for NPR.
Blame DeCSS! (Score:5, Funny)
Business Plan (Score:4, Interesting)
And, then you are shocked and apalled that everyone is sharing Digital copies?
RIAA can blame congress on this one... (Score:5, Insightful)
So why are CD sales off? Maybe because music that's on the radio is so weak and generic. Because the bands that get promoted are done so from on high in a corporate boardroom. The record companies have always managed things from above, but before the great airwave merger-fest started in 1996, they still had to work with local DJs and concert promoters and that invariably meant more variety. Now they all work in a harmonious corporate union and the result is music that more or less sucks.
They want a scapegoat? They need to look at this slick machine they've created.
-S
Re:RIAA can blame congress on this one... (Score:5, Informative)
One thing to add is that since Cheap Channel bought SFX Entertainment, they've been choking out "competitor" stations for concerts (I work for a Cumulus Media station).
Isn't it in the best interest of the artist to get as much exposure as possible? Too much corporate scandal and politics...we exist FOR the artist..not BECAUSE of the artist.
Parent
When Napster Was Around I bought CD's (Score:4, Interesting)
Solution for falling record sales... (Score:5, Interesting)
Make less crap. [slashdot.org]
I'm not going to buy an $18 dollar CD dammit. I'll buy two $12 dollar ones though. Make less crap, drop the cost of the CD, and I'll buy more. As a finger to the man, I'll just use etree [etree.org] for now (though the RIAA get kickbacks for CD-R sales so I lose either way). I've bought all the CD's of the artists I want to buy for now. Nothing appealing has come out lately.
psxndc
RIAA is missing the point... (Score:4, Interesting)
I think what the RIAA is missing here is that the people who really download lots and lots of MP3s are never going to spend the money to buy this music in the first place. Case and point: I really wanted Tenacious D's album so I bought the CD. A good friend of mine kinda likes Tenacious D, but not enough to buy the album, so he downloaded the MP3s he likes. Since he never would have bought the CD in the first place, you can't really count him as lost revenue. He would have never bought the CD.
It would be interesting to me to find out how many people who used Napster (and still use Morpheus, et al) that never intended to buy the CDs in the first place. Removing them from the equation would provide a more accurate look at what the RIAA lost/gained.
CD buying frenzy! (Score:5, Interesting)
If I liked it, I would usually go and buy it just to have a nice hard copy of it, even better if it has lyrics and band pics etc. Everyone I know with the money to spare would do the same.
Now that I can never find music anymore, I simply don't buy CDs anymore. I haven't bought a CD in months, and the last one I bought was a Christmas present for my fiancee.
Someone please tell me, just how the fuck am I supposed to find music when I have no interest int he type of music that gets radio play? Even if I was interested in that type of music, most stations play the same 20 songs 10 times every day, for months and months at a time.
Abso-fucking-lutely ri-fucking-diculous!
Costs? (Score:5, Informative)
Here's how the marketing budget is being wasted: 1) On an average of at least once a week, the music shop where I work receives an OVERNIGHTED package of promo materials for us to put up in our store... usually consisting of 1 poster, and usually of someone mostly obscure, or of someone who would not move in sufficient quantity for us to warrant putting up a poster 2) We received probably 3-7 promotional packages a day containing posters, promo flats, giveaway CD samplers, value-adds and other things that cost the store $0, but instead come out of the marketing budget 3) Additionally, we also receive promos of a lot of things that usually go into a nice box to never be heard, or sold to another store for their used stock. All of these materials contribute to your higher CD costs, but you don't even like these bands.
Another question that's been on my mind for a while is: Well, once the CD has gone out of its initial print run, why don't prices drop because they don't need to promote it anymore, it's part of the back-catalog then? Well, not really... manufacturers are more keen on cutting-out and dropping from the catalog older releases by an artist rather than moving them to mid-price.
And one more thing: There are great artists out there on nice independent labels that know how to manage their money and don't squander it on useless promotion nor to line the executive's pockets. Case in point: The White Stripes, on Detroit's Sympathy for the Record Industry label... Releases ~$13, excellent rock reminiscent of early Zeppelin... Hell, there are a whole litany of these artists featured in Coalition of Independent Music Stores stores... find your local store at www.cimsmusic.com
I guess I have a different perspective... (Score:5, Interesting)
Things are very different. My school had to implement and upload/download limit on internet1 traffic whlie they go over the options on how to control this problem. (Most likely they'll be using a packateer...) The problem has been caused due to music/movie etc transfers on morpheous and kazaa. Becasue of our schools privacy policy and unrestrictive content, the school doesn't want to censor or block any incoming material or outgoing. They don't monitor content. Into the first couple weeks of the semester, before the bandwitdh restrictions, the network was soo saturated to the point that i1 traffic was
Hell, if Sorority Sarah can burn the new N'SYNC album on her Compaq, she's not going to buy it.
Re:I guess I have a different perspective... (Score:4, Funny)
Hell, if Sorority Sarah can burn the new N'SYNC album on her Compaq, she's not going to buy it.
The negative consequences being?
Parent
Re:I guess I have a different perspective... (Score:4, Insightful)
Fully fledged bastard of a good point. The amazing thing is that there is any debate about this at all on fora like Slashdot. For the majority of people, it's simply not wrong. If it were wrong, it would be hard to do, or there would be a threat of punishment. It isn't and there isn't, so it must be OK, right? Or, like, The Authorities would stop it, or something (assuming they even get that far in their thought processes).
And yet... and yet... the metrics don't support that. We see P2P use and CD sales rise and fall in unison. We (being geeks) assume that the P2P sharing drives enthusiasm for buying CD's. The RIAA selectively misrepresents the figures to "prove" that sharing kills sales.
Is there a simpler answer?
That there is no cause-effect from sharing to sales? That it's all the other way around, just like it's been for the past fifty years or so? When there's a lot of good music around, CD sales go up, and that drives extra traffic in P2P sharing. When the music sucks, sales drop, and people don't even care enough to share.
Both the RIAA and the geek brigade have agenda to show that P2P drives sales (down and up respectively), but (anecdotes aside) there's no direct evidence to support that. Perhaps CD purchasers are buying music using the same criteria that they have for the past fifty some years: does it suck? How much does it cost? Do I want my own good quality CD, or a shitty MP3/analogue tape/reel to fucking reel copy from my friend?
Anecdotes aside, copying has always been extra to shelf sales. The figures seem to indicate that's still the case. People who are going to buy music are still buying it, even though they don't have to.
Parent
You're fooling yourselves (Score:5, Insightful)
Of course it will cause a decline. It may not have yet, but the CD's days are numbered. Why? They're an obsolete technology. They're clunky. They require packing and shipping. They hold a limited amount of music. They're prone to loss and scratches. If you think song swapping won't accelerate the decline in sales, you're fooling yourselves.
The record companies see the writing on the wall, and are trying to milk as much money out of CD sales before their collapse. Of course they're going to whine about everything that can even be perceived as a drop in sales; it's just part and parcel of doing everything they can do to receive court decisions sympathetic to their financial interests.
YOU're part of the problem (Score:5, Insightful)
The problem with this Heinlein quote is that the RIAA's beef, however much we may vilify them (and they are unquestionably vile), IS supported by statute and common law. There are few people less supportive of the Content Kings than me but if I have to say it a million times I will: as long as all we're doing is trying to justify the violation of copyright law, which is what downloading copyrighted music or burning a copyrighted CD that you do not own UNQUESTIONABLY is, we will NEVER make progress in changing things to a better system.
Legitimate consumer and legal beefs with the RIAA are plentiful:
* Do the Content Kings REALLY own the copyright to specifc recordings, or should many have reverted to the authors?
* Does the way the "legitimate" online music businees operates qualify as monopolistic practices?
* Is the DMCA constitutional, or is it in fact an example of "prior restraint," illegalizing the POTENTIAL uses of legitimate tools?
* Copy-protection schemes that produce "CDs" that do not follow CD specs, do not play in the range of equipment the consumer has reasonably come to expect, and reduces the versatility of the product.
* Treatment of artists, overpricing, the endless extension of copyrights... All these and more are totally valid points of attack. You wanna burn CDs, download free music? Be my guest. Hell, I speed. But stop this nonsense that somehow the courts and corporations should recognize our "right" to violate copyright law. Every argument like this just strengthens their case and makes the further legislation of information tools that much more likely.
Simple question... (Score:4, Interesting)
Why do we get defensive every time the RIAA trots out the "falling sales, evil pirates, end of civilisation as we know it" line?
Why don't we respond with: "Yeah, sales are down, and it's your fault, you soulless reptiles. What the fuck are you going to do about it? I hate your over engineered muzak, and the dead eyed meat puppets that mime to it, and your old fashioned distribution system, and the fact that most of the cost of an album goes to weaels in marketing and legal, up the noses of desparately unhappy borderline morons in G-strings, or in <strike>bribes </strike> campaign contributions. Fix it, and fix it now, or get the hell out of the way and let someone else have a go at supplying the demand rather than trying to control it through an abusive monopoly."
Oh wait, I just said it.
Another reason CD sales are down (Score:4, Insightful)
"Is this CD copy protected?"
"I don't know. They don't label all that are."
"The only CD player I have is in my computer. If this is copy protected, I will not be able to play it. I will have bought what is for all intents and purpouses a shiny piece of metal. Can I at least try this to see if I can play this?"
"Sorry, but if the case has been opened, there are no refunds."
Yes, that will encourage more record sales.
Post Hoc, Ergo Propter Hoc (Score:4, Insightful)
I've seen this "analysis" before (that Napster boosted CD sales and that its shutdown caused the recent decline in profits), and I'm not sure I buy it. It smacks of the usual after this, therefore because of this [skepdic.com] thinking. It's like the hemline theory [optionetics.com]. Someone noticed that stock prices and the length of womens' hemlines seemed to track together. Look! The stock market is determined by how long skirts are!
It's possible that Napster had a hand in both driving up revenues and then later driving them back down. But without more evidence other than "See! See! They happened at the same time!" I'm going to remain skeptical.
I'd like to read this survey. (Score:4, Interesting)
In any case, I bet the survey's question was more like "Have you ever downloaded music?", "Did you pay for that download?". And then, I think the RIAA said "every time somebody downloads a song, they don't buy a CD."
This sounds like baloney to me. The reason I'm not buying CD's today is that I'm boycotting the RIAA. I suppose they could blame that on Napster, i.e. suing Napster and not providing a solution to fill consumer's desires.
Gee maybe it's the RECESSION?!?!?! (Score:4, Interesting)
I guess it's easier to blame napster and the terrorists and whoever else they can think of.
-ted
Downloading songs doesn't devalue CD's (Score:4, Interesting)
They claim that 'Napster like downloading of music' is hurting their sales. I think what's really happening, in most cases, that people are downloading songs that they're interested in, particularly the older ones. I got to peak in a couple of people's MP3 lockers from way back when, and most of their songs were made at least 2 years ago, and date all the way back to the Beatles. I realize this isn't a very accurate slice of the world, but think about it, how many people do you think are saying "Hmm... I wonder what Pink Floyd is like?" and going and finding out? What are they supposed to do? Go to the store and try to find these albums? That's fine and dandy, but you don't know what you're buying there. Why pay $10-$15 for a CD when you only want one song?
In any case, if somebody downloads a song, buying a CD still has value. Why? Because there are usually 10 or so more songs on it to listen to. What the person has actually downloaded is a teaser to go get the CD. In which case, it's even more valuable to the RIAA because if the user likes the song, they have more reason to go buy the album. If they don't buy the album, then it's likely that the content wasn't enticing enough. That's not the RIAA's fault.
Part of me can't help but wonder if the RIAA is trying to protect themselves against sales lost due to customers really know what's on the CD. *Shrug*
"But they can go download the rest of the album, if they like it!" -- this is what a RIAA rep would say in a Milhouse kind of voice. I think you can search for albums on the net. Who knows, maybe in the future Morpheus will get so good that all music is available. Until then, in the time it'd take me to get the album (i.e. searching for it, trying to find sources that are reliable, etc), I could have gone to the store and gotten it.
If the day comes where entire albums are up for instant download on Morpheus, then the RIAA has lost their own battle. Today they could provide a means for people to legitimately buy individual songs in MP3 (or equiv) format. If they did that, then I could download any song I wanted from a fast server without having all the headaches of a p2p network. Every day they don't do that, more and more people wouldn't try it if it did materialize.
In short, the RIAA's losses are their own fault. People want individual songs but can't get them legally without overpaying for them. File sharing is a result of a new market trend. A competent organization'd say "How can we make money here?" instead of fighting it like a bunch of spoiled babies.
This hit me like a brick, (Score:4, Interesting)
5 years later...The "big" record stores laugh at me when I ask for any samples. Radio does not play "my type of music"....I have know way of knowing what music to purchase....Let alone where to hear a sample before making the purchase....Needless to say, I go the next few years with only buying a handful of CD's (mostly from artists who had released music I liked "back in the day" or to replace my favorite crappy tapes with CD's.)
Fast forward to Napster....Much like the sample tapes I used to get when I was a kid...I can download a few obscure album songs from a band I read about and actually have a fair and partial decision making process....AND guess what -- I started to frequent the music stores like crazy, and started filling up my CD collection with FRESH music from new bands, and old bands I had somehow missed the first time around.
Post Napster: I have not been back to the record store because even if I had a gift certificate for a wheel barrow load of free CD's, I would not even know where to start....I tried gnutella for awhile, but it was not the same....Napster represented the WHOLE (by the numbers of people using it), everything else is just scattered pieces -- and if I was looking for top 40 or greatest hits records then maybe that would suffice -- but I am looking for obscure music from bands that may have never sold any more albums than I have fingers, never made the airwaves of radio, no MTV, yet still managed to get a record contract.
Bottom line: the industry has failed. And until I can walk into a record store that has all of the trappings of my former "dealer" OR can easily SNARF music samples from an endless pit of obscure recordings such as Napster -- then the recording industry will never see another red cent from me thank you.
Re:Economy (Score:3, Insightful)
Maybe it's just me Jack, but I beleive VHS not only helped the movie industry, but it also provided a new revenue stream (rentals).
Of course now he is at it again trying to control the digital medium while arguing that it will destroy Hollywood. Wow, what a visionary!