Hi,
Does anybody know of any books/magazine articles/ webpages
etc., where i could found out more information about the music
bussiness re assessing the viewpoint put below? Steven
Catanzaro mentioned in his post on Wednesday night about US
record companies often taking a 93% share in profits ("a share that
would make a pimp blush" Steve says). The case that Steven
made was that if the record companies were a bit less greedy and
a bit more efficient, this "downturn" in the market would be
neutralised. If this is the case then the analysis from the ifpi
makes mp3s into scapegoats and seeks to threaten services like
audiogalaxy without proper warrant.
So I want to find out a bit about the economic history of the music
business over the last 30/40 years. Have record companies
always taken as large a cut as 93%? Is that only on their major
artists? How much does that figure vary between major and
independent record companies? Nethead: i can understand you
not wanting to make specific comments about Ninja Tune, but
surely most UK independents don't take that much? Where would
you put the figure? If they do take 93%, what on earth do they use
it for? (you don't have to answer that one)
The ifpi article mentioned that there was a 5% growth in the UK
market. What spin is given to this - for surely the UK is using peer-
to-peer music sharing as much as other countries?
thanks,
tom
On 8 Jun 2002, at 6:19, nethed wrote:
Date sent: Sat, 8 Jun 2002 06:19:34 +0100
To: "_dakati _" <dakati@postmaster.co.uk>, acid-jazz@ucsd.edu
From: nethed <nethed@ninjatune.net>
Subject: Re: [acid-jazz] Music industry sues audiogalaxy
> --============_-1188608919==_ma============
> Content-Type: text/plain; charset="us-ascii" ; format="flowed"
>
> >
> >> they claim is eating into sales.
> >
> >is this true? I remember reading somewhere that record sales were
> >actually 'higher' that ever before...
> >
>
> According to the http://www.ifpi.org they were only higher in 2
> places in 2001: England and France:
>
> Global music sales down 5% in 2001
>
> London, April 16, 2002
>
> London, April 16, 2002 - The global music market fell 5% in value and
> 6.5 % in units in 2001. Demand for recorded music worldwide is
> estimated to have been stronger than ever before, but much of the fall
> in sales is attributed to the increased availability of free music via
> mass digital copying and the internet.
>
> Recorded music sales worldwide fell to US$33.7 billion. Sales of CD
> albums fell globally by 5%, and there were declines in sales of
> singles (-16%) and cassettes (-10%). The figures were published today
> by IFPI, the organisation representing the recording industry
> worldwide.
>
> Commenting on the figures, Jay Berman, Chairman and CEO of IFPI, said:
> "In 2001 the international recording industry was caught in a perfect
> storm, buffeted by the combined effects of mass copying and piracy,
> competition from other products and economic downturn. The industry's
> problems reflect no fall in the popularity of recorded music: rather,
> they reflect the fact that the commercial value of music is being
> widely devalued by mass copying and piracy.
>
> "The record industry is responding. It is developing new business
> models, new payment systems and a new legal environment for the future
> on-line legitimate business. And it is acting decisively using
> anti-copy measures on CDs and internet anti-piracy actions to protect
> the business that it depends on today. These measures of
> self-protection are essential to stop the widespread erosion of record
> producers' and artists' rights".
>
> Two major markets - France (up 10%) and the UK (up 5%) -
> significantly bucked the downward trend. Both countries saw
> exceptionally robust sales of domestic artists in 2001, which helped
> offset the worldwide fall in sales of the biggest international
> artists.
>
> Eighteen of the 20 top-selling albums in France carried French
> repertoire; in the UK, domestic artists accounted for the top seven
> best-selling albums last year.
>
> Three of the world's top five markets - the US, Japan and Germany -
> attribute a significant part of their sharp drop in recorded music
> sales in 2001 to the proliferation of free music and piracy.
>
> The effect was felt on CD sales, in most of the markets of North
> America, Europe, Latin America and Asia. Declines in market value in
> 2001 ranged from 4.5% in the US and 9.6% in Canada to 9.2% in Germany,
> 8.6% in Italy, 9.8% in Austria, 14.8% in Denmark and 9.4% in Japan.
> The pressure from mass copying was aggravated in many markets by the
> global economic downturn, particular in the last quarter of the year.
>
> Surveys in the most affected countries, notably the US and Germany,
> show that mass copying and internet piracy is directly replacing sales
> of CDs. Sales of domestic artists fared well in many major markets,
> notably in France, Italy, UK, Spain and Australia. The average share
> of national markets accounted for by domestic artists has risen 1% a
> year to 68% over the last decade.
>
> In Germany, 18% of 10,000 consumers surveyed said burning CDs
> resulted in them buying less music. In the US, nearly 70% of people
> who downloaded music burned the songs on to a CD-R disc, while 35% of
> people downloading more than 20 songs per month said they now buy less
> music as a result.
>
> Three markets with vast populations and among the lowest per capita
> music consumption rates in the world - China, Russia and India - saw
> encouraging growth in 2001 on the back of economic improvement. Sales
> in China grew by 15%; growth in India was 15%, and in Russia 17%.
>
> Many developing markets saw an increase in commercial piracy, driven
> by the accelerating spread of organised CD-R pirate operations.
> Piracy, combined with economic crises, particularly hit markets in
> Latin America. The most dramatic impact on legitimate sales occurred
> in the region's two largest markets, Brazil (down 25%) and Mexico
> (down 16%). A similar situation exists in parts of Eastern Europe,
> with Poland down 28%. --============_-1188608919==_ma============
> Content-Type: text/html; charset="us-ascii"
>
> <!doctype html public "-//W3C//DTD W3 HTML//EN">
> <html><head><style type="text/css"><!--
> blockquote, dl, ul, ol, li { margin-top: 0 ; margin-bottom: 0 }
> --></style><title>Re: [acid-jazz] Music industry sues
> audiogalaxy</title></head><body>
> <blockquote type="cite" cite><br>
> > they claim is eating into sales.<br>
> </blockquote>
> <blockquote type="cite" cite>is this true? I remember reading
> somewhere that record sales were actually 'higher' that ever
> before...<br>
> </blockquote>
> <div><br></div>
> <div>According to the http://www.ifpi.org ; they were only higher
> in 2 places in 2001: England and France:</div> <div><br></div>
> <div><font face="Arial" size="+4"><b>Global music sales down 5% in
> 2001</b></font><font face="Arial" size="+2"><br> <br> <i>London, April
> 16, 2002</i><br> <br> London, April 16, 2002 - The global music market
> fell 5% in value and 6.5 % in units in 2001. Demand for recorded music
> worldwide is estimated to have been stronger than ever before, but
> much of the fall in sales is attributed to the increased availability
> of free music via mass digital copying and the internet.<br> <br>
> Recorded music sales worldwide fell to US$33.7 billion. Sales of CD
> albums fell globally by 5%, and there were declines in sales of
> singles (-16%) and cassettes (-10%). The figures were published today
> by IFPI, the organisation representing the recording industry
> worldwide.<br> <br> Commenting on the figures, Jay Berman, Chairman
> and CEO of IFPI, said: "In 2001 the international recording
> industry was caught in a perfect storm, buffeted by the combined
> effects of mass copying and piracy, competition from other products
> and economic downturn. The industry's problems reflect no fall in the
> popularity of recorded music: rather, they reflect the fact that the
> commercial value of music is being widely devalued by mass copying and
> piracy.<br> <br> "The record industry is responding. It is
> developing new business models, new payment systems and a new legal
> environment for the future on-line legitimate business. And it is
> acting decisively using anti-copy measures on CDs and internet
> anti-piracy actions to protect the business that it depends on today.
> These measures of self-protection are essential to stop the widespread
> erosion of record producers' and artists' rights".<br> <br> Two
> major markets - France (up 10%) and the UK (up 5%) - significantly
> bucked the downward trend. Both countries saw exceptionally robust
> sales of domestic artists in 2001, which helped offset the worldwide
> fall in sales of the biggest international artists.<br> <br> Eighteen
> of the 20 top-selling albums in France carried French repertoire; in
> the UK, domestic artists accounted for the top seven best-selling
> albums last year.<br> <br> Three of the world's top five markets - the
> US, Japan and Germany - attribute a significant part of their sharp
> drop in recorded music sales in 2001 to the proliferation of free
> music and piracy.<br> <br> The effect was felt on CD sales, in most of
> the markets of North America, Europe, Latin America and Asia. Declines
> in market value in 2001 ranged from 4.5% in the US and 9.6% in Canada
> to 9.2% in Germany, 8.6% in Italy, 9.8% in Austria, 14.8% in Denmark
> and 9.4% in Japan. The pressure from mass copying was aggravated in
> many markets by the global economic downturn, particular in the last
> quarter of the year.<br> <br> Surveys in the most affected countries,
> notably the US and Germany, show that mass copying and internet piracy
> is directly replacing sales of CDs. Sales of domestic artists fared
> well in many major markets, notably in France, Italy, UK, Spain and
> Australia. The average share of national markets accounted for by
> domestic artists has risen 1% a year to 68% over the last decade.<br>
> <br> In Germany, 18% of 10,000 consumers surveyed said burning CDs
> resulted in them buying less music. In the US, nearly 70% of people
> who downloaded music burned the songs on to a CD-R disc, while 35% of
> people downloading more than 20 songs per month said they now buy less
> music as a result.<br> <br> Three markets with vast populations and
> among the lowest per capita music consumption rates in the world -
> China, Russia and India - saw encouraging growth in 2001 on the back
> of economic improvement. Sales in China grew by 15%; growth in India
> was 15%, and in Russia 17%.</font><br> <font face="Arial"
> size="+2"></font></div> <div><font face="Arial" size="+2">Many
> developing markets saw an increase in commercial piracy, driven by the
> accelerating spread of organised CD-R pirate operations. Piracy,
> combined with economic crises, particularly hit markets in Latin
> America. The most dramatic impact on legitimate sales occurred in the
> region's two largest markets, Brazil (down 25%) and Mexico (down 16%).
> A similar situation exists in parts of Eastern Europe, with Poland
> down 28%.</font></div> </body> </html>
> --============_-1188608919==_ma============--
>
>
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