1.1 Billion Pirated CDs Sold Last Year

[u2popmofo]

http://story.news.yahoo.com/news?tmp...usic_piracy_dc

By Emmanuel LeGrand

LONDON (Billboard) - One out of every three physical recordings sold in the world is a pirate product.

Based on street value, international trade body the International Federation of the Phonographic Industry (IFPI) estimates the global pirate music business was worth $4.5 billion in 2003. This figure is based on an estimated 1.1 billion pirate optical discs sold in the world last year.

"Overall, pirated products are the most serious threat to our business," IFPI chairman/CEO Jay Berman says.

Piracy levels were at 17% in 1999; they are now at 35%. The growth rate for sales of pirated products has doubled in the past five years, but Berman says 2003 saw the growth rate slowing down.

"We've been at work -- seizures are up and some governments have taken action," Berman says. IFPI-originated action has resulted in the seizure of 56 million optical discs last year, up from 13 million in 2001.

The IFPI presented a comprehensive overview of its actions against piracy in the 2004 Commercial Piracy Report, unveiled Thursday in London.

The two main sources of pirated products are CD pressing plants and CD-R burning operations. The former is what Berman calls "a trans-borders business" while the latter is mainly for local consumption.

For example, IFPI has identified in Russia 20 plants out of the existing 31 that "are involved in piracy," according to IFPI head of enforcement Iain Grant. In Pakistan, IFPI has identified eight pressing plants with a yearly capacity of 160 million CDs per year.

"What we are dealing with is not amateurs -- these are professional criminals," Grant says. He adds that there is serious concern within law enforcement agencies such as Interpol that part of the profits from this business could help finance terrorist groups.

Berman presented the IFPI's 10 priority countries, as it did last year. The main piracy offenders are Brazil, China, Mexico, Pakistan, Paraguay, Russia, Spain, Taiwan, Thailand and Ukraine.

"These are the countries that failed to live up to their responsibility," says Berman, who called upon the governments of these countries "to take firm action against commercial music piracy."

Reuters/Billboard




Pretty crazy article, I never realized that many were being sold.

[IWasBored]

i've heard that it's pretty easy to acquire pirated CDs in russia...i know a girl who bought all the pogues' albums on an MP3 cd-r off someone for the equivalent of about 4 bucks.

i wasn't aware of it being that big, either, though.

[u2popmofo]

Originally posted by u2popmofo

Berman presented the IFPI's 10 priority countries, as it did last year. The main piracy offenders are Brazil, China, Mexico, Pakistan, Paraguay, Russia, Spain, Taiwan, Thailand and Ukraine.

"These are the countries that failed to live up to their responsibility," says Berman, who called upon the governments of these countries "to take firm action against commercial music piracy."

Why hasn't Yertle been hooking us all up??


Wow, I dont think I've ever quoted myself before. It's freaking my bean.

[Popmartijn]

Originally posted by u2popmofo
Why hasn't Yertle been hooking us all up??


Wow, I dont think I've ever quoted myself before. It's freaking my bean.

I don't see Singapore on that list.

[IWasBored]

Originally posted by u2popmofo


Why hasn't Yertle been hooking us all up??


Wow, I dont think I've ever quoted myself before. It's freaking my bean.

"freaks my bean" is officially the funniest expression i've heard.

[u2popmofo]

Originally posted by Popmartijn


I don't see Singapore on that list.

Yes, I should have explained. Thailand's pretty dang close. I think we all need to send him some major cash so he can take a little trippy to Thailand and get us much in the way of super cheap bogus CDs.....or not. Which ever.

[indra]

I remember reading an interview with a musician who told a story of finding a copy of one of his band's CDs for sale when he was in Thailand. It had bonus songs on it, so he thought hmmm and bought it to hear just what bonus songs. He said "there we instrumental bonus songs on it alright. They just weren't ours." I thought that was hilarious.

[MrBrau1]

There was ALOT of press a few month back about CD prices dropping. Still haven't really seen the prices drop.

[melon]

I hate all these "lost sales" figures. I really doubt that every pirated CD sold means that the people would otherwise have bought that album at full price. I mean, really...are people that easily misled?

The good news for me and the bad news for the music industry is that I'm starting to get into some fairly obscure bands, where the CDs are much cheaper, on average. But, after all, the music industry would rather have 5 million Britney albums sold than 5 million different albums by different artists sold.

Melon

[MrBrau1]

Who actually buys Britney albums? I don't know anyone who does. Then again, I don't know many 14 year old girls.

[u2popmofo]

Originally posted by melon
But, after all, the music industry would rather have 5 million Britney albums sold than 5 million different albums by different artists sold.

Yeah, that's quite annoying to me too. I dont know why they put so much stock in their short lived "artists" who will soon be (if they aren't already are) the butt of every joke in the music industry.

You havent seen any independant labels complaining about file sharing or any of these other factors that are supposedly "destroying the music industry", because they've all experienced massive boosts in sales from more exposure.

That being said, I was just surprised that so many pirated CDs are being sold, and I agree that I doubt everyone who bought one of those would have ever bought the actual album for full price.

[Jack In The Box]

tsss

my country always stands out in wrong things...

[indra]

Originally posted by u2popmofo

You havent seen any independant labels complaining about file sharing or any of these other factors that are supposedly "destroying the music industry", because they've all experienced massive boosts in sales from more exposure.

That being said, I was just surprised that so many pirated CDs are being sold, and I agree that I doubt everyone who bought one of those would have ever bought the actual album for full price.

Actually, I do know a man who started an independent label who is adamantly opposed to file sharing, pirated music, and other forms of the illicit trade of intellectual property. This guy is a musician who is just trying to support himself and his familyand is by no means rich (although he is known internationally, has been signed to major labels, and has had chart sucess). His label always has free mp3s up from several of the albums for sale, so anyone interested in a sample of the music can easily and legally obtain it.

Now chances are excellent that none of the cds put out by this tiny label are actually being manufactured by pirates are slim as there really isn't the market, I do realize that. My issue is with the people who call themselves fans, but download cds in their entirety. I had one guy tell me (online) that not only did he download this man's brand new album in it's entirety, but that he was also getting everyone he possibly could to do the same. You know why? Because he didn't like the way it was distributed. Jerk couldn't walk to his corner store and buy the CD, so he was helping out "the little guy." The sad thing is the downloading "fan" is probably making more money than the musician, yet he can't be bothered to pay for a fricking CD from a musician he supposedly admires.

Maybe I'm just looking at the issue from an intensely personal perspective, but that made me feel sick. I cannot understand what justification people can find for taking another's property without paying for it. Say what you will about file sharing being good advertising, the owner of the property has the right to determine how that property will be distributed, no one else.

I had an acquaintence who was always a couple of months behind on his rent. His rational? "Look at the house she [his landlady] lives in. She doesn't need the money." To me this and the illegal file sharing is done by people with the same kind of selfish attitude. Me me me. No concern at all for the other guy.

*Edited to add: Yeah, yeah, I know, I'm ranting agian....

[Zoorock Girl!]

What the hell do these companies expect? Anyone who's ever been to these countries where piracy is rampant, knows that the people are poor and they can't afford to pay outlandish prices for "the real thing".

Believe me, some places in the world have movie stores where every film is pirated.

And the funny thing is, if you want to buy a "real" cd out there, you pay even more than you do out here! So think about it for a second, can you blame them?

[yertle-the-turtle]

lol. I must confess many moons ago I was a contributor to that industry, in my pre-music fanatic days.

The piracy industry (if you can call it that) was pretty heavy in Singapore in the mid-90s, but the police have since cracked down on them hard. Previously you could just go to any random street corner or to a so-called 'pasar malam' (night market) and just buy a music, video or computer disc for about a fraction of the original price.

For music, a lot of the CDs come in 'cover version' formats, ie. a so-called 'Best Of the Backstreet Boys' (I have that somewhere, by the way ) recorded by some anonymous local singer to the same backing music. I have no idea what the idea behind this mentality is, but alot of people get reeled in thinking it's the real deal. With the advent of mp3s, CDs are starting to be sold in CD-R format with titles like 'Top Hitz 2000' and just tons of mp3s on a CD-R. 'Original' albums are sometimes sold with so-called 'bonus tracks' (I saw an ATCYLB being sold for about $10, half its' retail price with Angel of Harlem, One and With Or Without You tacked on), presumably to fill up space.

It's still relatively easy to just head north to Johor Bahru in Malaysia and peruse the pasar malams there and get a pirated CD or fifty, which is what a lot of Singaporeans do. I believe that most people buy pirated computer CDs. It's not something I do very often nowadays (considering I don't play that many games or need any apps anyway), but to be fairly honest, if I wanted one I'd buy a pirated computer CD. I know it's wrong but I can't afford $50-$60 software. This issue has been raised with the Business Authority or whatever they're called, with most people saying if you bring down the price of original software to something that is affordable for most people there'd be less people going to pirates, only to be shot down everytime. That said, I have since stopped buying pirated music/video CDs ever since I got myself into really mad music fandom in 2000 or so. The rationale is that while CDs are expensive in their own right, $20 is not unaffordable, even to a student like me who has to save his lunch money and stuff.

So there you go.

[Lilly]

Originally posted by MrBrau1
There was ALOT of press a few month back about CD prices dropping. Still haven't really seen the prices drop.

when I went on a cd buying frenzy recently, I got 3 cds for just shy of $33 with tax. the two cheapest cds (the stills and the shins) are relatively unknowns whose cds are cheap to entice people who "kinda like that one song from the radio" to buy the whole thing instead of downloading it. the portishead cd was expensive in relative terms.


I didn't realize there were this many pirated cds. last time I was in new york city I saw quite a few pirated cds for sale though.