Album sales continued to decline, hurt by downloading at unauthorized peer-to-peer networks and shrinking shelf space at fewer brick-and-mortar retail outlets.Music's Lost Decade: Sales Cut in Half.
Total revenue from U.S. music sales and licensing plunged to $6.3 billion in 2009, according to Forrester Research. In 1999, that revenue figure topped $14.6 billion.You don't think they would have gone to all that trouble with ACTA and PIPA if they weren't losing money by the bucketload, would you? Let's be quite frank--the content industry is taking a beating due to illegal downloading. The idea that it "won't kill you" is a laugh. Jobs are being lost.
Although the Recording Industry Association of America will report its official figures in the early spring, the trend has been very clear: RIAA has reported declining revenue in nine of the past 10 years, with album sales falling an average of 8% each year. Last decade was the first ever in which sales were lower going out than coming in.
. . . .Total revenue from U.S. music sales and licensing plunged to $6.3 billion in 2009, according to Forrester Research. In 1999, that revenue figure topped $14.6 billion.
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Although the Recording Industry Association of America will report its official figures in the early spring, the trend has been very clear: RIAA has reported declining revenue in nine of the past 10 years, with album sales falling an average of 8% each year. Last decade was the first ever in which sales were lower going out than coming in.
In terms of how [Spotify streaming] affects a small band, Uniform Motion provided the figures for their relationship with Spotify in September 2011:But music is different from movies - cheaper to stream, but also a lot easier to download.
With Spotify, we’ll get €0.003/play.
If you listen to the album all the way through, we’ll get €0.029.
If you listen to the album 10 times on Spotify, we’ll get €0.29
If you listen to it a hundred times, we’ll get €2.94
If you listen to the album 1,000 times (once a day for 3 years!) we’ll get €29.47!
For comparison, the cash after costs of a CD sale at €10 is €4.34, and on a pay-what-you-want digital download at €5 the cash after costs is €3.88. Depending on perspective, the relatively small profits from Spotify are either a supplement to other digital earnings, or a low-value substitution for digital downloads.
In terms of how [Spotify streaming] affects a small band, Uniform Motion provided the figures for their relationship with Spotify in September 2011:A better comparison might be between Spotify and radio. €0.003 ~= US$0.004.
With Spotify, we’ll get €0.003/play
…
For comparison, the cash after costs of a CD sale at €10 is €4.34, and on a pay-what-you-want digital download at €5 the cash after costs is €3.88.
More jobs and businesses have been created by VCRs than destroyed by them. More jobs and businesses have been created by the breakup of AT&T than destroyed by it. More jobs and businesses have been created by the decline of IBM than lost in Armonk. More jobs and businesses have been created by the stagnation of Microsoft than lost in Redmond. And it will be the same with the RIAA, the MPAA, Intellectual Ventures, and everyone else scheming to enthral the people with digital “rights” management and criminal prosecution of “file sharing.” In the destruction of the monopolization of ideas, lies the seeds of another revolution, one that will bring wealth, freedom, and jobs.posted by unSane at 6:19 PM on February 8, 2012 [2 favorites]
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"We think there is a fundamental misconception about piracy. Piracy is almost always a service problem and not a pricing problem," he said. "If a pirate offers a product anywhere in the world, 24 x 7, purchasable from the convenience of your personal computer, and the legal provider says the product is region-locked, will come to your country 3 months after the US release, and can only be purchased at a brick and mortar store, then the pirate's service is more valuable."
Maybe he didn't, of course; it's basically the entire Forbes article in a shorter form. That said, it's really nice to see sane articles in press like Forbes (read by non-internet people) though.
posted by jaduncan at 7:15 PM on February 4, 2012 [9 favorites]