Music Sales Fall Despite Digital Growth

[TheRealRoach]

Music Sales Fall Despite Digital Growth

Hot off the presses... Some quotes about 2007 figures:

"Global digital music sales were estimated to be approximately $2.9 billion in 2007, a roughly 40 percent increase on 2006, and single track downloads, the most popular digital music format, grew by 53 percent." ... confirming more and more that it's a singles market.

"The IFPI said tens of billions of illegal files were swapped in 2007, with the ratio of unlicensed tracks downloaded to legal tracks sold at about 20 to 1." ... 20 to 1!

"The industry has also been boosted by a landmark ruling in Belgium which ordered a service provider to block illegal file-sharing -- although the company is appealing -- while in Britain, the government has said it could impose legislation if an agreed settlement between both sides cannot be found." ... Seems like the problem is now falling into the ISP's (internet service provider) lap as well.

[seriousfun]

Not good news, of course, but I'd rather be selling music than houses, down 15-20% in the US. Or cars, mobile phones, nutritional supplements, photo film, and other product catagories that fell as much or more as music for 2007 in the US.

Remember that the music businesses themselves are not down by that much - UMG is reporting increases - from increased sales of ringtones, movie, gaming, and TV licensing, etc.

The last time music sales tanked was in 1981, down 12-15% over previous years, and the business rebounded. Inflation, gas prices, home taping, gaming, and other factors were blamed for that decline (sound familiar?), but good music, and ultimately the introduction of the CD, helped propel the music industry to new heights. This will happen again.

[BevvyB]

Music has traditionally fared well in times of recession

The recession at the end of the 70's/early 80's gave rise to punk
The recession at the end of the 80's gave birth to the dance explosion

People get ever so creative when they're skint ('broke' in US speak- Jules ), which is good for music. People either want to lament the old days, or forget about them. Music can facilitate both mindsets.

[bogeyeater]

Originally Posted by seriousfun

Not good news, of course, but I'd rather be selling music than houses, down 15-20% in the US. Or cars, mobile phones, nutritional supplements, photo film, and other product catagories that fell as much or more as music for 2007 in the US.

Remember that the music businesses themselves are not down by that much - UMG is reporting increases - from increased sales of ringtones, movie, gaming, and TV licensing, etc.

The last time music sales tanked was in 1981, down 12-15% over previous years, and the business rebounded. Inflation, gas prices, home taping, gaming, and other factors were blamed for that decline (sound familiar?), but good music, and ultimately the introduction of the CD, helped propel the music industry to new heights. This will happen again.

that's optimistic. cd's were the gross windfall for the music industry - run up the price above inflation and sell the mugs + a whole new generation of mugs the same s*hit on a different format.

lol 'good music' - that's touching...

[seriousfun]

Originally Posted by bogeyeater

that's optimistic. cd's were the gross windfall for the music industry - run up the price above inflation and sell the mugs + a whole new generation of mugs the same s*hit on a different format.

lol 'good music' - that's touching...

Yup, 15 cents of polycarbonate for $18.99! Coca Cola's margin was never that much.

[bogeyeater]

Originally Posted by seriousfun

Yup, 15 cents of polycarbonate for $18.99! Coca Cola's margin was never that much.

ha, no shit. surely cd's, promotional dick-waving and cocaine fueled the '80's - good music was entirely accidental