~unforgettableFOXfire~ said:
How much does 'cd sales being down' relate to music downloading, and how much does it have to do with the quality of music production? For that matter, what factors aren't being looked at re: those statistics? There are a lot of factors that go into sales statistics. Economic status and unemployment rates (luxury items go down during economic uncertainty), currency value, alternative media -- if you start releasing music on dvd/acd/bluray/new vinyl/online, of course cd sales are going to drop when you've divided your category of sales into four categories. I've read statistics suggesting a 4% net decline, all media considered; so what if cd sales are down by 50% if they're still making a killing elsewhere? It's not like the industry is suffering a 50% loss in income just because they're suffering a decline in CD sales. 50% loss in cd sales doesn't mean that half of the industry has had to close it's doors.
Yes, it affects aritsts who make less money most of all, I'm not disputing that. New artists have always received crap-all from cd sales. Artists are receiving less than aforementioned 'crap-all' now since there's less money to go around. True, not everyone is rich in the music industry, but the music industry has never treated all its constituent members in a way that those people have deserved. It's a business, and it's being run like it's stakeholders don't matter and the industry can do whatever it wants without consequences. Suing people who have kept the industry afloat for decades, suing people who represent the future consumers of that business' products, hurting their bread & butter by laying them off so that executives can continue to roll in $2 million annual salaries in executive positions when they're clearly not competent given these reactions to market trends.
Something else that has to be considered is what music is being downloaded. I would hazard a guess that it isn't all top 100 new music. What about cds that you can't find at your local retailer? Are you going to go without, or are you going to download? How do used CD sales factor in? Traditionally, this has been an area of pure profit for retailers, not the industry; to their sales figures, what does it matter if someone downloads music that's 15 years old if they would have just bought the cd used anyway? It isn't a factor at all, by my judgement. That's not to say it isn't nonetheless illegal, but I find it difficult to believe that such activity can account for a sharp decline in sales/profitability. Only big albums from big artists are going to be sitting in the racks at retailers, where less known, more obscure music isn't going to be carried -- and it isn't layoffs that are responsible for that, it's supply and demand. Retailers aren't going to keep inventory that they aren't going to sell when that disc takes up space that a cd they could be selling for profit would otherwise be occupying -- this is why retailers sell off old inventory at wholesale.
I just don't buy it that downloading is the bane of music. The industry doesn't know how to use opportunities that are presented to it, because they haven't been faced with any sort of logistics challenge before. They want things to go back the way they used to be because it was easier than trying to accomodate, but they don't have that option.
The quality of music production has never been better, the quality of the actual music being produced is open to debate, but its always the anti-industry types who claim they are not selling because the artist and music are not up to some vague prior standard.
The strength of the economy just drives home the point even further. Unemployment is just as low as it was during the biggest boom times in the industry. Wages are up, and GDP growth is solid. The economy is probably in the best shape it has ever been in its history, but the music industry is falling.
Based on what new artist are experiencing, the 50% drop is having the major impact most people would assume that it would. Bono was not talking out of his butt when he mentioned that U2 would have been dropped in the current environment with either their first or second album. You can try to work an arguement around the numbers, but the numbers here tell the truth of what is going on. A 50% decline in sales probably means that 40% of the industry has had to close up since the year 2000. 50% of record stores in many area's have closed down.
No business is going to protect someone with a 2 million dollar pay check unless they feel its absolutely necessary to keep their position. When downsizing begins because the profits are no longer there, all options are on the table.
I'm not sure that suing these people is an effective tactic, but the people being sued are definitely not people who support the music industry are had any attention of supporting in the future. A person who has obtained over 300 albums for FREE is not about to go out and start buying albums. So if your going to target anyone, thats the person you want to go after.
Catalog sales, sales of music that is over 2 years old is not what is impacting the music industry. Its the sale of current product, where the industry has always received the vast majority of its money from, where FREE music is having the most impact on the business. Obviously catalog sales are impacted, but the industry has never been dependent on catalog sales. Only very successful veteran artist have successful catalog sales, while the vast majority of other artist will eventually see their albums go out of print, especially if the album in question never went platinum.
The difference between 1999 and 2007 is the number of people with the ability to either download or burn their music at no reduced quality for FREE. ANY business would be heavily impacted if people could obtain the service or product they were selling for FREE. Its that simple.
How many people would stop to buy a hotdog at a particular stand, if 10 feet away you could get the same hotdog for free? Downloading and CD burning has had a very negative impact on the music industry that has been noted by BONO, someone who is essentially immune to its negative effects.
It would be nice if some way could be found to return things to the way they were and are for just about any other business. If people want the product or service you are selling, they PAY for it.
So that's why my brother asked me for 3 grand the other day. It all makes so much sense now. 
Why, I am such a terrible criminal, contributing to the demise of the already fucked and outdated record industry! Someone call the RIAA! Now she's never going to go out and pay for this album that she NEVER would have even heard of has I not given it to her for free!!! What will the world do? 
