Music Sales Resumed Decline in 2005

[EdwardKnoxII 0]

http://entertainment.tv.yahoo.com/entnews/...3798424000.html

 

Music Sales Resumed Decline in 2005

 

Sun Jan 22, 6:44 PM ET

 

 

Recorded music sales resumed their decline in 2005, the industry's leading global body said Sunday, despite high-profile victories against piracy and a surge in online and mobile music store revenues.

 

Global music retail revenues fell about 2 percent last year, said John Kennedy, chairman and CEO of the International Federation of the Phonographic Industry. In 2004 they remained flat at $33.6 billion, punctuating a four-year slide.

 

The new downturn, based on data from three-quarters of the global market, underlined major challenges facing record companies as executives assembled for the music industry's largest European gathering, Midem, which is taking place this week in the French Riviera town of Cannes.

 

The drop in overall sales came despite a threefold increase in digital music revenue to $1.1 billion from $380 million, while illegal file-sharing volumes changed little, according to a separate IFPI market report published Thursday. The federation sees total sales broadly unchanged in 2006.

 

Record bosses are now having to look beyond piracy to explain the latest decline in revenues, which have fallen about 20 percent globally since 1999.

 

"Piracy in all its forms has been the major factor in this reversal but not the only factor," said Eric Nicoli, chairman of EMI Group PLC, the world's No. 3 record company.

 

Speaking at the MidemNet music technology forum, which preceded the main event, Nicoli also cited tougher competition from other categories of consumer goods.

 

"Twenty years ago there were no mobile phones, no DVDs, no computer games to speak of," he said. "In categories that did exist, like magazines, cosmetics and designer clothes, we've seen a massive explosion of choice and accessibility to consumers. So no surprise, then, that music sales have come under pressure."

 

EMI and other record companies are also pressing Apple Computer Inc. to allow more pricing flexibility on its iTunes Music Store, which charges the same rate for any song downloaded 99 cents for U.S. customers. They have argued so far without success that they should be able to charge more for the most sought-after hits.

 

Apple's iTunes accounts for about 70 percent of U.S. and British online music sales and has significant shares of its 19 other markets. Its popularity is widely credited with halting the growth of piracy, but record companies complain that this has come at the price of a loss of control over their own pricing and marketing.

 

"One of the biggest mistakes we've made is to hand a monopoly to the retailer," said Alison Wenham, chairman and chief executive of the Association of Independent Music, which represents 800 indie labels.

 

Some analysts see other reasons for the industry's current woes. "Executives have focused so much of their attention on piracy that they've diverted their efforts from developing new talent," said Phil Leigh of Inside Digital Media, a U.S. market research firm.

 

Entertainment companies won a series of major court rulings against music piracy in 2005, including a June U.S. Supreme Court decision allowing them sue the file-sharing site Grokster for encouraging copyright infringement. Grokster paid $50 million to settle out of court and closed down the site pending a planned switch to licensed sales.

 

But anti-piracy laws and their enforcement remain patchy in some parts of the world. Record companies, copyright holders' groups and artists are planning protests during Midem against a French move last month to legalize online file sharing.

 

In a rebellion by lawmakers from the conservative ruling party, the French parliament approved amendments introducing a so-called "global license" allowing Internet subscribers who pay an extra monthly fee to copy as much music as they like online. The government is seeking the amendments' withdrawal and is expected to announce compromise proposals in coming days.

 

Despite the music industry's gloomy sales and outlook, almost 9,500 participants from 92 countries are registered to take part in Midem, which runs through Thursday. That's a 7 percent increase from 2005.

[Corey_Lazarus 0]

Blah blah blah...they're still so naive that they think piracy - which has been around since home recorders were made available - is at fault. No, of course, don't blame the shitty-ass bands overpopulating the market these days.

[Red Hot Thumbtack In The Eye 0]

After selling overpriced garbage for years, they are scrambling now because people have a choice in how they get these products, and it's ruining their business model.

[snuffbox 0]

Maybe the music industry can be saved if these damn downloaders get some jail time...

[Cheech Tremendous 0]

I don't understand how these record label executives can be so naive when it comes to understanding the failings of the industry in recent years. It really doesn't take a genius to figure out. Why not bring in a panel of 18-34 year olds and ask them why they are buying less music?

[Slayer 0]

Myopia is a very common trait in the entertainment industry

[razazteca 0]

The solution to this is very simple raise the prices at the iTunes Music Store.

[The Czech Republic 0]

Blah blah blah...they're still so naive that they think piracy - which has been around since home recorders were made available - is at fault. No, of course, don't blame the shitty-ass bands overpopulating the market these days.

Um, don't you like Shadows Fall

[Corey_Lazarus 0]

And you like an abundance of overblown and pretentious indie rock, your point being?

[The Czech Republic 0]

I do?

[Guest Agent of Oblivion]

Don't lie.

[The Czech Republic 0]

I wouldn't say an abundance.

[Lord of The Curry 0]

Czech likes Jazz, right?

[The Czech Republic 0]

Yeah, Czech likes jazz

 

 

In terms of "pretentious overblown indie," I've grown to like the Arcade Fire, but it doesn't even compose a plurality of my listening

[Red Hot Thumbtack In The Eye 0]

Czech read my shadow's fall review <3

[BruiserKC 0]

The music industry doesn't build careers or let bands develop. They automatically expect a band or individual to just put hit music out right away or they won't stay around. Bands like U2, REM, etc...got a chance to hone their skills over a few years and a few albums. Those bands wouldn't be around today for long if they don't grab an immediate following.

 

Plus, why the hell would we want to buy CDs anymore when there's only one or two decent songs per CD. The last CD I bought was for my wife and that was three years ago, I can't justify spending $20 for a CD with one or two good songs on it and 8 shitty ones.

 

Piracy is the scapegoat here, maybe if the music industry changed their approach their sales might go back up.

[The Czech Republic 0]

To be fair, U2 came out fairly strong out of the gate; Boy was good for a debut album and War is one of their better albums. (Nobody remembers October.) A little rough around the edges without the input of Brian Eno, but it's still good music. Now if you want to talk about initial sputtering that would kill a modern band dead, Pink Floyd spent the late 60s treading water with lots of mediocre noodling before they got a #1 with Atom Heart Mother.

 

As for CD prices, I agree. $15 would even be reasonable, $19.95+8.5% sales tax is way too much. There are still albums out there that are quality from start to finish, you just have to look for them.

[Corey_Lazarus 0]

And that's why the recording industry needs to do something that a lot of indie bands are doing: let fans hear some samples of the new tunes on the official sites, maybe a minute or so of each song (if the song is over a minute, that is), so that people can decide if that's what they like. Then they purchase. I know the recent addition of the digital listening stations as various FYE franchises has given me the opportunity to preview a few albums I otherwise would have purchased only to find out I wasn't into it, and also to help get albums I didn't think I'd like getting.

 

What was that online streaming radio site where you can put in the title of a song you like, or a band whose work you enjoy, and they connect you to other bands of similar styles?

[Guest The Spike]

What was that online streaming radio site where you can put in the title of a song you like, or a band whose work you enjoy, and they connect you to other bands of similar styles?

 

http://www.pandora.com/

[BruiserKC 0]

To be fair, U2 came out fairly strong out of the gate; Boy was good for a debut album and War is one of their better albums. (Nobody remembers October.) A little rough around the edges without the input of Brian Eno, but it's still good music. Now if you want to talk about initial sputtering that would kill a modern band dead, Pink Floyd spent the late 60s treading water with lots of mediocre noodling before they got a #1 with Atom Heart Mother.

 

U2's was a good start...but wouldn't have been a home run back then. These days, the initial efforts have to be out of the park. Whether it's Nelly, Kelly Clarkson, Alicia Keys, etc...if it's not good enough to play on several hundred radio stations and get widespread mainstream praise forget it.

[randomguy 0]

Problems with the music scene today:

 

Higher costs up front (marketing, videos, etc) deman higher initial returns. This leads to pandering, the usual suspects writing singles, etc. (Tons of hit bands/artists have their main singles written by the small same group of people)

 

Listeners exposed to much less variety - no TV station for music, most radio stations have the same playlists or are "classics" stations. The amount of variety on mainstream sources is inredibly low, due to Clear Channel, payola, elimination of local DJs, etc.

 

Music videos/magazine covers/etc make actual music a secondary concern. Most "artists" are performance artists who dance around, look good, and maybe sing a bit.

 

I believe this sort of stuff has a trickle-down effect. Mainstream music is pretty horrid, which trickles down. People listen to that crap, are influenced by it. Our entire conception of modern music is changing for the worse. Bands that just make good music are passe.