Recorded Music Sales Fall: Is Anyone Surprised by This?
January 23, 2010 12:13 am
The New York Times reported yesterday that global music sales decreased by 10 percent in 2009. According to the International Federation of the Phonographic Industry, in fact, sales have fallen 30 percent from 2004 to 2009. The problem – besides continuing to make the all but obsolete compact disc – is, you guessed it, pirates. John Kennedy, IFPI chief exec, says, “We’re all fed up with talking about piracy. It’s boring to talk about piracy, but it is the problem and we can’t avoid it.” So we’re going to bore with some pirate talk.
A few facts for you: compact disc sales fell by 16 percent globally. This translates into a few billion in lost revenue for the music industry. In 2008, the industry generated revenue of $17.5 billion. Last year, $15.8 billion. The problem is that revenue from digital sales weren’t big enough to close that gap and make up the loss, even though internet, phone, and other digital sales rose by 12 percent to $4.2 billion. These sales are 27 percent of the total industry revenue. Revenue from iTunes and other downloading services is down, while the popularity of free, ad-paid streaming sites like Spotify is up.
When you’re talking about all these billions, it’s hard to feel sorry for the music industry. But you do feel for the artists. According to Kennedy, labels haven’t been willing to take the risk and invest in new talent and local artists. A few more facts to digest: domestic artist album releases declined by 60 percent; Spain’s music sales have been terrible and there was not a single native artist in the top 50 sellers of the year; and the biggie, according to the IFPI, 95 percent of music downloads are illegal.
Some countries have taken action to stem the tide of piracy. France, Taiwan, and South Korea all passed laws that will result in internet connection loss for repeat offenders. The UK’s Digital Economy Bill has provisions for that consequence as well. Other countries, though, are slow to act. Spain, for instance, says Mr. Kennedy, has a “a culture of state-tolerated apathy towards illegal file-sharing.”
Some say the solution is to offer consumers music in the way they want it, not in the way the music industry wants to give it to them. People are clearly moving away from CDs and are gravitating towards free ad-based or even subscription based streaming sites. Why not give them what they want and find a way to profit from that?
More Music News From Around The Web Today . . .
RealNetworks Promotes Rhapsody’s Lundsford
Daft Punk’s Fragile From Tron Legacy Leaks
Franz Ferdinand Lambast U.S. Label For Licensing To McDonald’s


