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View Full Version : Lies, damn lies, and the RIAA


dcwave
12-17-2002, 03:52 PM
Someone emailed this to me

If the Recording Industry Association of America is to be believed, file sharing and P-2-P applications cost them billions of dollars each year because of piracy. Napster, Kazaa and the ilk is the reason why CD sales have show a decline in the past several years, right? These are some of the arguments the RIAA has used to lobby the government for increased strict copyright laws and mandatory DRM technology. Now, what if the decrease in CD sales was mostly the RIAA's doing, and was to be expected?

A Register story (http://www.theregister.co.uk/content/6/28588.html) which states the major recording labels have had a 25% dropoff in titles over the last two years. If you release less product to the masses wouldn't you expect to see a drop off in sales? The story suggests that the music industry is holding up pretty darned well since they have only seen a drop of 10.3% in sales with this dramatic decline in releases. George Ziemann did some digging and compiled some numbers (http://www.azoz.com/music/features/0008.html) from RIAA market data and found that the amount per release has dramatically increased over this time.

Like a company who may downsize, actual sales and profits were down over the past two years, while efficiency has improved. Instead of touting the music industry as being leaner and meaner in the past couple of years, profits and sales are down not because of streamlining, it is all because of pirates. I'm not saying file sharing apps have not eaten into sales, they may have, but it seems a bit hypocritical to call on Congress and law enforcement agencies to change laws and partake in piracy raids when the industry may be as strong as ever.



[This message has been edited by dcwave (edited 12-17-2002).]

bombastique
12-17-2002, 09:39 PM
At and average cost of $14 each, that $4B figure would equal 285.7 million cd's.

As they say 'I smell a rat!'

Enlightend
12-18-2002, 12:50 AM
$14?? I thought it was like $18 at least...

And what about this trend with books, just go look at Amazon.com, some new released book: "List price of $30.00, now for only $20.00!!!(aren't you lucky)" Buy NOW!! What the hell happened to a $10.00 book??

If those SOB's would charge $10 for a CD I might buy one every so often. . ..

Actually I just thought of something, if CD's were $10 I WOULD buy some, possibly one each month or even more. I have not bought a CD in so long, I simply will not pay that @$^*(@* price.


[This message has been edited by Enlightend (edited 12-18-2002).]

bombastique
12-20-2002, 11:46 AM
i don't know about elsewhere, but here in the SF bay area, the average price is right around $14. i don't think i've paid more than that for a cd except for imports.

it's still too high - $10 would be more like it and i know i certainly would buy more at that price...

Enlightend
12-20-2002, 11:10 PM
Originally posted by bombastique:
it's still too high - $10 would be more like it and i know i certainly would buy more at that price...

Maybe some are so driven by greed and short-term profits that they cannot compute such things. Situation A: Walk in store, buy one CD for $14. Situation B: Walk in and see desired CD for $10, then spy additional CD desired for $10 and think "ah what the hell". Situation A profit: $14; Situation B profit: $20. $6 x millions. ..... ?

narcoman2
12-21-2002, 04:26 AM
$14 sale price of a CD generates $14 profit. I think not !! Shop gets about $3, packaging deduction is about 25%, distribution company charges about 20%, Harry Fox agency (or equivalent) gets approx 9% - record company ends up grossing about $4 - and thats before paying for advertising, repro, recording and giving their artists SOME money. NO. The record industry on it's own is not too blame. Too much product sold to a public that doesn't consider music in the same way it did 25 years ago. There are other entertainment consumables - video, DVD, games, internet ents - the list goes on. Yes the RIAA and their worldwide counterparts are a bunch of whiners. I used to blame the record industry for loads of stuff - crap bands, no choice blah blah blah - then one day i realised ... its an industry not an arts council. It sells what the punter will buy. End of story. Profits are WAY down in the record industry even if the turn over is up above inflation. There are too many people chasing too few sales and jobs - the days of the the all powerful record company are indeed over - which also means the day of the superstar seller are numbered.

cheers

bryceyaworsky
12-22-2002, 07:46 PM
If you want an accurate breakdown of how a sale is broken up, read "Confessions of a Record Producer", by Moses Avalon. You'd be amazed at how much the 'Big 5 record label' gets compared to the artist.