Declining CD Sales

[ston]

http://www.reuters.co.uk/news_article.jhtml;jsessionid=A52IKLEB5SGPICRBAE0C FEYKEEATGIWD?type=entertainmentnews&StoryID=1185873#


By Paul Majendie

BRUSSELS (Reuters) - The record industry has pleaded with consumers to stop downloading and recording music for free because piracy is strangling the multi-billion-pound industry.

Profits have plummeted, especially in Europe. CD sales in Germany last year were 185 million whereas the number of blank CDs used to copy music was estimated at 182 million.

Record executives also believe there are now more unauthorised music files available on the Internet than at the height of Napster's success in the field.

"Music for free means less new music, fewer new artists, less choice, thousands less jobs," said Jay Berman, head of the industry's main trade body, the International Federation of the Phonographic Industry (IFPI).

Electronic music composer Jean Michel Jarre, who has staged spectacular sound and light shows around the world, fervently agreed, telling reporters on Wednesday: "If music is to continue to support the livelihoods of artists, it cannot be taken without the permission of artists."

They were speaking at a news conference in Brussels to mark the IFPI Platinum Europe Awards that are staged every two years to give out record industry "Oscars" to artists who have sold over one million albums across the continent.

The industry may be celebrating the bestsellers but it is clearly alarmed.

John Kennedy, President and Chief Operating Officer of Universal Music International, warned: "If the prevailing music for free mentality is left unchecked, record companies will no longer be able to re-invest up to 15 percent of their revenues in discovering and nurturing the Platinum artists of the future."

IFPI sales figures for 2001 showed a five percent fall in the value of recorded music worldwide to $33.7 billion (21.8 billion pounds). Among the steepest falls were in Europe -- Denmark was down 19 percent and Austria 10 percent.

Kennedy, speaking to Reuters afterwards, said the figures speak for themselves.

"In 2000 in America, seven albums sold more than five million copies. Since then, none has sold more than five million copies," he said, putting the fall down to consumers who spurn the record stores and search elsewhere to get their music for free.

Kennedy said Irish supergroup U2 sold 10 million copies of their first Greatest Hits compilation album. The second volume is due out this year and he wondered: "Are these figures still attainable?"

[mwalimu]

A couple of questions I have...


Profits have plummeted, especially in Europe. CD sales in Germany last year were 185 million whereas the number of blank CDs used to copy music was estimated at 182 million.

The phrase "used to copy music" in this sentence bothers me. Is this total blank CD-R sales, or did someone actually figure out that this was how many were used to copy music CDs. I would also ask, how many of these copies were what most of us would consider "fair use"?


"In 2000 in America, seven albums sold more than five million copies. Since then, none has sold more than five million copies," [Kennedy] said

This may be a "spread the wealth" effect. That is, as file sharing and webcasting enable music fans to be exposed to more artists and a greater variety of music, many of them choose to buy more of their CDs from lesser known artists instead of multi-platinum artists. I know I feel better thinking the royalties from a CD purchase go to some outstanding but obscure band who'd be thrilled to see their sales go up by a few hundred than I would if they help some big name make a down payment on a 50,000 square foot mansion.

--
mwalimu

[BookSpyder]

In case it isn't clear:

The world economy is in pretty bad shape. I said it before elsewhere, and I'll say it again:

If you are unemployed and placing a higher priority buying retail CDs ($18 and up), than food, clothing or shelter, you deserve to be starving and freezing in the dark.


From the original Reuters post:

Kennedy, speaking to Reuters afterwards, said the figures speak for themselves.

"In 2000 in America, seven albums sold more than five million copies. Since then, none has sold more than five million copies," he said, putting the fall down to consumers who spurn the record stores and search elsewhere to get their music for free.

Kennedy said Irish supergroup U2 sold 10 million copies of their first Greatest Hits compilation album. The second volume is due out this year and he wondered: "Are these figures still attainable?"

The real question is "Should we expect people to buy CDs when they are worried about meeting living expenses in the same economic downturn that we are caught in?"

Also, the argument that as many blank CDs as pre-recorded CDs being sold in Germany or elsewhere as a watermark for piracy is pure misrepresentation propaganda by the recording industry.


From the original Reuters post:

Profits have plummeted, especially in Europe. CD sales in Germany last year were 185 million whereas the number of blank CDs used to copy music was estimated at 182 million.

Did it ever occur to anyone in the recording industry that blank CD-Rs are also used for a lot of other things other than copying music? Computer backups, recording digital photography, transferring non-music files and non-critical media are some of the other uses they have. I personally handled over 50 CD-Rs this year at my workplace (graphic artist), and to my knowledge, none of them had music on them. I would really like to know how music company officials in Germany determined that 182 million CD-Rs were being used solely for illegally recording music.

Open Statement to John Kennedy, President and Chief Operating Officer of Universal Music International:
If you expect to sell 10 million copies of the second volume of U2's Greatest Hits, you will need to do the following:

1. Find 10 million consumers willing to pay for music they weren't buying in "Joshua Tree" numbers after Rattle & Hum was released. (Assuming the second greatest hits package uses material from Achtung Baby onward).
2. Package it with the first volume, find 10 million consumers who haven't bought either and hope that lightning strikes twice.
3. Buy up all the CD-Rs in Europe that weekend and stump the pirates.
4.Price the thing reasonably ($10-$14 USD) and allow the material to sell on its merits in existing marketplace conditions.

I expect to see 1-3 happen before I see 4, but it could happen....

Peace,
BookSpyder
-Not every CD-R sold to the public goes to recording music illegaly. Only an overpaid, insecure recording company official would believe that they are.

[PatientSaint]

I'll agree with Book. I mean with expenses right now with College paying 19$ for a Cd with two good songs on it jsut isn't smart. Like i've said if they want to cure some of their woes 1.) go down on Cd prices. No one is willing to gamble 19$ on a unsure artist. 2.) Come out with more qulatiy artists. I know i can't be the only one sick of al lthis pop BS they are spreading out. That would help but it won't solve much really the industry has problems that need to be addressed but they are in denial about it all. They can't ignore it forever and eventually it will lead to the industry downfall. The more they try to supress the future the more it contributes to the downfall. Time will tell if they can get thier act together and evolve along with the changing technology of the industry and world.

[FreedomToShare]

If cd prices would be cheaper like DVDs has been declining in price in the last year or so. Because cds are just to expensive and if the record companis would get their act together.

[Hairbrainer]

I can't believe these recording artists are frowning because of mp3's They panic over all those cd-r's being sold, and hit the bathroom after seeing all those mp3 players on the shelf. Well those things are products and somebody is making bunches of money! Just because WB or Artista can't figure out what to do does not mean fewer artists are going to pop out. Trust me if it gets too slow out there then companies like Creative or TDK will start promoting their own lists of eligable top bands. It is just as easy for a record label to manifacture cd-r's as it is to make the latest boy band cd.


One last thing... If I see another no hit wonder complaining about having to file for bankrupcy or talking about how broke he is. Then seeing an interview later in front of his 26 room mansion then I am going to puke! Ice you are on that list baby.:finger

[Music Pirate]

Originally posted by FreedomToShare
If cd prices would be cheaper like DVDs has been declining in price in the last year or so. Because cds are just to expensive and if the record companis would get their act together.
Amen FreedomToShare....