Study: Falling CD sales can't be blamed on P2P

[billf]

A study was released today which shows that the decline in sales of CD's is not a result of online file sharing. The report blames the proliferation of entertainment alternatives, physical piracy (China), and the slow adoption of Internet delivery models by the music industry:

"It is very difficult to establish a basis to prove a causal relationship between the size of the drop in music sales and the rise of file sharing. Sales of CDs, as well as the success of licensed online music services are likely to have been affected to some degree by a variety of other factors, for example physical piracy and CD burning, competition from other, newer entertainment products and faltering consumer spending in some markets," the report said.

Interesting stuff and definitely something to watch.

http://news.com.com/2102-1027_3-5746291.html?tag=st.util.print

[wonder]

its no mystery this has been happening for a few yrs.

[WKWizard]

They should mention the outlandish CD prices for some of these so-called "artists"...$17 for Britany Spears!?

Then they should take a closer look at the horrible products these record companies put out. Most is real garbage.

Even my favorite style of music (metal) is not immune to this. I wrote music reviews for a metal website and for every 10 CD's that came in, at least 5 were complete junk. And I'm not talking merely personal preference here...I mean junk.

Record companies have been making a killing on junk artists for as long as I can remember and it's only been getting worse.

[johnnytucats]

Go to XXXXXXXXXXXXXXXXXX and see who's being ripped off.

I'm in no way promoting the use of that website. I just think people should know what they're talking about.

<small>[ June 24, 2005, 09:53 PM: Message edited by: johnnytucats ]</small>

[mgmediaworks]

Im in the music business myself.... sales decline.. are DUE TO ONLY AND ONLY.. AND ONLY HIGH PRICED CD'S.. CD FOR $17.99 I SAY DOWNLOAD I!!!! F*** IT...IT COST ME $1.05 to press each cd.. i imagine how much it costs a major.. too expensive.. ..i would never sell a cd for that price.. shame on these labels..

[Jim]

"It is very difficult to establish a basis to prove a causal relationship..."

Read it again... the report doesn't say "not a result" as you said it did. It said, "difficult to establish." Not nearly the same thing. It was difficult for the LA DA to establish that OJ killed a couple of people, ya' know. Perhaps not the best analogy, but anyway....

This topic's been hot for years. File-sharing is definitely one of many factors.

I wish more consumers had the outrage that some of you feel over prices, and would simply not buy products they feel are over-priced. That's where your power is. If you buy, and then complain about it, you're just a whiney chump.

Believe it or not, it is possible to live a fulfilling life without owning any Britney CDs.

[Timeline]

So what price is fair for a cd release? 10 bucks? Less?

What price would stop piracy?

[reekguitar]

I agree with timeline, droppin' the price will not stop piray, it may help devaluate the product.
Back to topic, I don't how it is in the US but here the stats clearly say that there is not drop in sales, if you add Music-DVD, CD and itunes sales you are there.
I admit the world has changed, fans are not waiting for "the album" anymore the way it was in the sixties-seventies. I remember when the beatles announced an Album! geee! everybody wanted it! same for LEd Zep later on.

So this type of passion about it has gone, but the world is simply changing, nevertheless it will always need music in a kind or form.

One thing for sure is that the internet has helped to kill the record stores, as much as the computer has helped to kill a lotta pro studios,. When you think that it became so much easier for all of us to do an album! are there mo' better albums comin' out these days? that's the question!

[Timeline]

Right.

So where does one go to order the actual CD of a major album, NOT the MP3 downloads?

Seems this is an area we need more of like Tower Records online and Virgin. If consumers see more of these and want the real thing, income may stream back.

[reekguitar]

yes maybe,
to me that's not where the real problem is. The problem is that the majors do not really invest in to the future, it's all about making a buck next week.
I am sure that there is a way to generate passion, but that needs more than just music and pictures, it needs talent, a story, a message, a new style!

Where I leave the 14-18 kids listen to alternative rock, I doubt that they buy the CDs, some do, others simply download it for free.

What I mean to say is, yes the majors need to invest money for marketing but they need to push talent, not image, they need to plan long term.

Look at your contry scene in the US, I saw the CMA awards, same people as 10 years ago, except K.Urban or Gretschen Wilson. Now that's the kind of music where the customers buy the CDs I am sure. The pop.rock scene has gone too much commercial.

I think that this could help too.

[James Steele]

Here's a crazy idea... bring back the LP!!

Not the format, but the experience. Package the CD in a LP sized album that opens up and has color photos of the artist, lyrics... etc. Of course retailers will hate how much space it takes up, but to the consumer they will feel like they're getting something for their money. CD's just seem to lack much of the experiential and tactile reward that those of us who remember vinyl might remember.

[Jim]

So what price is fair for a cd release? 10 bucks? Less?

What price would stop piracy?

Ten bucks is a fair price, given the cost of manufacture, and the profits the majors receive.

But, I'm not sure any price is going to stop piracy. Some kids today are just in a mind set that music is, or should be, free, and they're going to steal because that's their peer model. A 20-ish nephew, for example, brags about all the songs and videos he's stolen, and he's a member of a clique that brags about who's stolen the latest, coolest...

The industry needs to continue their campaign of informing the public that stealing music hurts musicians and the industry. But, it's hard to convince consumers about who's robbing who when CD prices are outrageously high. The hypocrisy of that position is obvious, even to miscreant dimwits.

[reekguitar]

Right James, I agree that the format has something to do with it!
The artwork, size etc...
The sound is someting most of todays music consumer don't care about, tell your kids about the warm sound of an LP!

Jim, you hit the point, it's part of today's "being cool".

But again, I don't believe that reducing the price is an Issue!

Somehow I disagree to sell music cheaper, everyrthing has its cost, the music, the production, the marketing but....
...it has to be done properly

Internat is not alone to destroy the business, I continue to think that it has to do with the behanviour of the record & media companies!

[Timeline]

Following up on Steels comment, I went to Tower to look up the Smile -Brian Wilson album and noticed they were selling a Vinyl version for over $30 bucks. I think you would have to get that price down to CD costs to compete James but it's a nice idea.

I think a DVD with copy protection doing 24 bit 96K has a shot and will likely be the value added fix were looking for as long as the price is ok.

I would love to have pics, booklet, DVD sized on a John Lennon
compilation as well done as the postcard art for my collection.

[qo]

CD's just seem to lack much of the experiential and tactile reward that those of us who remember vinyl might remember.

Yep, this is something I've brought up in multiple offline conversations. Remember the real zipper on Sticky Fingers? Or the real velvet cover on the Bee Gee's Odessa, or the popup cardboard likeness of Jethro Tull when you opened Stand Up?

Not that I, uh, per se, got any tactile reward by unzipping that zipper. Not that there's anything wrong with that. Umm, yeah.