Record Industry circles the drain...

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Sugarcubes Forever
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Record Industry circles the drain...

Postby Sugarcubes Forever » Mon Jan 24, 2011 4:48 pm

The record industry circles the drain and continues to blame downloading skaflaws for the collapse of their shitty business model.

In each of the past two years, the rate of increase in digital revenue has approximately halved. If that trend continues, digital sales could top out at less than $5 billion this year, about a third of the overall music market but many billions of dollars short of the amount needed to replace long-gone sales of compact discs.

“Music’s first digital decade is behind us and what do we have?” said Mark Mulligan, an analyst at Forrester Research. “Not a lot of progress.”

“We are at one of the most worrying stages yet for the industry,” he continued. “As things stand now, digital music has failed.”

Music executives disagree, saying there is hope, as long as they can come to grips with piracy, which according to the industry federation accounts for the vast majority of music distributed online.

I got news for ya! If the record industry could magically shut off all "illegal" downloading overnight, it wouldn't translate into any additional record sales. The people who download music without paying for it wouldn't have payed for that crap in the first place.

The technology does make a big difference here. But it's not the theft that doing it. People by in large don't give a damn about buying albums anymore. AND, people spend their money on a lot of other types of entertainment/time-wasting activities. Such as video games, social networking, texting, etc. If you could block them from downloading, they'll just use that time to play Halo 3 or piss off their friends on Facebook by playing Farmville.

D. Phillips
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Joined: Mon Nov 12, 2001 8:00 pm

Postby D. Phillips » Mon Jan 24, 2011 5:48 pm

The more things change...

From our article posted in 2002:

According to the RIAA's Mid-Year Snapshot of [the] Music Industry, "CD shipments dropped 7% in the first six months of 2002, while seizures of counterfeit CDs soared by 69%." This, says the RIAA, "decisively debunks the theory that stealing music online is somehow good for the music business." Does it?

The report is based on a May 2002 survey of 860 Internet-connected music consumers age 12 to 54, which stated that, "by a more than two-to-one margin, consumers who say they are downloading more also say they are purchasing less." Seems simple enough, right? But what does one have to do with the other? I'll bet nearly 100% of those respondents who answered also eat bread. Is bread to blame for slumping sales? If they eat really expensive bread, it might be.

The report does not take factor in those Internet user's other spending habits. In the 80s the record industry was competing against the new, madly popular home video game craze (Atari 2600 or Intellivision anyone?), the advent of portable music listening devices (the Walkman), and the dreaded cassette tape. Today's consumer also has an overload of choices on which they spend their hard-earned disposable income.

Sugarcubes Forever
GLONO Board Maniac
Posts: 1734
Joined: Thu Feb 21, 2002 8:00 pm

Postby Sugarcubes Forever » Mon Jan 24, 2011 6:05 pm

GloNo knows the future before it's the future.

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