Proves the ineffectiveness of the RIAA’s "sue-em-all" strategy and perhaps played a part in their decision to switch tactics.
According to The NPD Group, a leading global market research company for the entertainment industry, consumer demand for music among US Internet users fell 2% from this time last year.
It also estimates that CD purchases declined by 19% in the same period. The most dramatic decrease was among teens, down 34%, and among adults age 26 to 35, down 36%. CD purchases by adults age 36 and older showed a more moderate decline of 10%.
Paid digital downloads experienced growth in the number of buyers, and the volume of tracks sold. 15% of Internet users purchased music from online music stores, such as iTunes and AmazonMP3, which is an increase of 2% over last year and equates to approximately 2.8 million additional music-download customers. Overall legal music downloads increased by 29%.
“The continued growth in the customer base for paid digital downloads is positive, particularly for teens, but it’s counteracted by deepening softness in CD trends,” said Russ Crupnick, entertainment industry analyst for NPD. “Alternative distribution deals in mobile and social networking are important ways for the music industry to fill the gap left by the decline in traditional revenue streams.”
The most interesting statistics are those for illegal file-sharing since it reveals data that certainly played a part in the RIAA’s recent decision to quit targeting individual file-sharers.
The overall number of file-sharers sharing music illegally held steady at 14%, however the volume shared rose by 23%, as P2P users reported downloading more files. Teens purchased 34% more paid digital downloads compared with a year ago, but the number of them downloading music illegally using P2P and file-sharing networks and services rose an astonishing 46%!
NPD also noted that the practice of sharing files for the purpose of burning to a CD fell 25% among teens, which suggests an increased preference for having the files in a digital-only format.
“The industry has managed to constrain the number of people who are file sharing, but the expanded use of services such as BitTorrent enable entrenched P2P users to download a growing number of files,” said Crupnick.
With RIAA pres Cary Sherman recently stating that the music industry began suing file-sharers back in 2003 because "at that time we didn’t have any parents engaged in deterring piracy" this new study proves the ineffectiveness of their "sue-em-all" strategy because the 46% rise in teen file-sharing means that many parents are still not actively engaged in piracy deterrence.
In short, this new study proves the plan was a failure all along. At least it’s finally concluded so, if not publicly.
jared@zeropaid.com
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- File sharing has increased
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I dont think its cus of the riaa they kept sharing. They just wanted free music. Its like when u steal things from a store you dont do it because the police could arrest you. You do it cause you want free stuff. So ya it had nothing to with the riaa we just want free shit.
aren’t other areas of entertainment up in sales?? Like movies or HDTVs? I think people are changing their buying habits and music just isn’t at the top of the list anymore. I know I’d rather have a nice tv than a bunch of cds.
Remember folks:
CORRELATION DOES NOT EQUAL CAUSATION.
MC
If the RIAA could tell their own asses from a whole in the ground then they would know the age make no difference…
“The music industry began suing file-sharers back in 2003 because at that time we didn’t have any parents engaged in deterring piracy. The rise in teen file-sharing means that many parents are still not actively engaged in piracy deterrence.”
Are you fucking kidding me!!? LOL!! O_o
My mum actually asks me to download shit for her wahaha!
Fast forward this to April 2/09>>RIAA has laid off 15% of its staff due to ineffective methods it has pursued to throw every file-sharer into a large court case. Now it has no money left..it has applied to the US government for a financial stimulus..lol
@1cooldude
haha figures