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Record industry’s plunging sales

p2p news / p2pnet: CDs are doomed. They’re passé. They’re old gear. They’re gone.

Forget platinum awards and all the other self-serving PR gliztshit which surrounds corporate ‘product,’ as the Big Four Organized Music record label cartel rightly calls the pitiful, grossly over-priced formulaic junk it tries to pass off as music.

So it’s no big surprise to learn, “Compared with 2004 - which, in a tic of the calendar, had a 53-week retail year - the market for CDs plunged more than 10 percent,” says CNN. “Based on a 52-week year, sales were down nearly 8 percent.”

But wait! It’s worse than a plunge. It’s a “crash” and it’s the, “worst since 2002, which witnessed a plummet of 10.7 percent - was all the more dizzying for retailers because the business appeared to be rebounding in 2004, when sales rose a modest but encouraging 3.8 percent,” declares CNN.

Could it be that this’ll end up like the crash of the 30s when executives were throwing themselves off tall buildings?

We’re wondering how long it’ll take the Big Four, Sony BMG, Vivendi Universal, Warner Music and EMI to instruct their RIAA (Recording Industry Association of America) to start screaming about p2p and file sharers.

Meanwhile, below is a Washington Post OpEd by Don Henley, late of The Eagles and who’s also a Recording Artists’ Coalition founding member. It dates back to the beginning of 2004, but it’s still relevant.

You’ll find plenty of versions on line, and this one was re-published on The Canadian Music Scene >>>>>>>>>>>>>>>>>>>>>>>>

KILLING THE MUSIC
By Don Henley - Washington Post 17-Feb-2004

When I started in the music business, music was important and vital to our culture. Artists connected with their fans. Record labels signed cutting-edge artists, and FM radio offered an incredible variety of music. Music touched fans in a unique and personal way. Our culture was enriched and the music business was healthy and strong.

That’s all changed.

Today the music business is in crisis. Sales have decreased between 20 and 30 percent over the past three years. Record labels are suing children for using unauthorized peer-to-peer (P2P) file-sharing systems. Only a few artists ever hear their music on the radio, yet radio networks are battling Congress over ownership restrictions.

Independent music stores are closing at an unprecedented pace. And the artists seem to be at odds with just about everyone — even the fans.

Contrary to conventional wisdom, the root problem is not the artists, the fans or even new Internet technology. The problem is the music industry itself. It’s systemic.

The industry, which was once composed of hundreds of big and small record labels, is now controlled by just a handful of unregulated, multinational corporations determined to continue their mad rush toward further consolidation and merger. Sony and BMG announced their agreement to merge in November, and EMI and Time Warner may not be far behind.

The industry may soon be dominated by only three multinational corporations. The executives who run these corporations believe that music is solely a commodity. Unlike their predecessors, they fail to recognize that music is as much a vital art form and social barometer as it is a way to make a profit.

At one time artists actually developed meaningful, even if strained, relationships with their record labels.

This was possible because labels were relatively small and accessible, and they had an incentive to join with the artists in marketing their music. Today such a relationship is practically impossible for most artists.

Labels no longer take risks by signing unique and important new artists, nor do they become partners with artists in the creation and promotion of the music. After the music is created, the artist’s connection with it is minimized and in some instances is nonexistent.

In their world, music is generic. A major record label president confirmed this recently when he referred to artists as “content providers.” Would a major label sign Johnny Cash today? I doubt it.

Radio stations used to be local and diverse. Deejays programmed their own shows and developed close relationships with artists. Today radio stations are centrally programmed by their corporate owners, and airplay is essentially bought rather than earned.

The floodgates have opened for corporations to buy an almost unlimited number of radio stations, as well as concert venues and agencies. The delicate balance between artists and radio networks has been dramatically altered; networks can now, and often do, exert unprecedented pressure on artists. Whatever connection the artists had with their music on the airwaves is almost totally gone.

Music stores used to be magical places offering wide variety. Today the three largest music retailers are Best Buy, Wal-Mart and Target. In those stores shelf space is limited, making it harder for new artists to emerge. Even established artists are troubled by stores using music as a loss leader. Smaller, more personalized record stores are closing all over the country –some because of rampant P2P piracy but many others because of competition from department stores that traditionally have no connection whatsoever with artists.

Piracy is perhaps the most emotionally gut-wrenching problem facing artists. Artists like the idea of a new and better business model for the industry, but they cannot accept a business model that uses their music without authority or compensation.

Suing kids is not what artists want, but many of them feel betrayed by fans who claim to love artists but still want their music free.

The music industry must also take a large amount of blame for this piracy. Not only did the industry not address the issue sooner, it provided the P2P users with a convenient scapegoat. Many kids rationalize their P2P habit by pointing out that only record labels are hurt — that the labels don’t pay the artists anyway. This is clearly wrong, because artists are at the bottom of the food chain. They are the ones hit hardest when sales

take a nosedive and when the labels cut back on promotion, on signing new artists and on keeping artists with potential. Artists are clearly affected, yet because many perceive the music business as being dominated by rich multinational corporations, the pain felt by the artist has no public face.

Artists are finally realizing their predicament is no different from that of any other group with common economic and political interests. They can no longer just hope for change; they must fight for it. Washington is where artists must go to plead their case and find answers.

So whether they are fighting against media and radio consolidation, fighting for fair recording contracts and corporate responsibility, or demanding that labels treat artists as partners and not as employees, the core message is the same: The artist must be allowed to join with the labels and must be treated in a fair and respectful manner. If the labels are not willing to voluntarily implement these changes, then the artists have no choice but to seek legislative and judicial solutions. Simply put, artists must regain control, as much as possible, over their music.

Tired of being treated like a criminal? They depend on you, not the other way around. Don’t buy their ‘product’. Do bug your local political representatives. Use emails, snail-mail, phone calls, faxes, IM, stop them in the street, blog. And if you’re into organizing, organize petitions, organize demonstrations and then turn up on your local political rep’s doorstep, making sure you’ve contacted your local tv/radio station/newspaper in advance.

Also See:
CNN - Record sales suffer steep decline, January 3, 2006

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8 Responses to “Record industry’s plunging sales”

  1. Reader's Write Says:

    The RIAA isnt marketing their music via these channels and they are losing big time.

  2. Reader's Write Says:

    A few of the reasons are

    Music has been taken over by the racketeering and payola infested mafia. It was bound to happen.

    Artist contracts have destroyed the musicians.

    Then musicians thought that their worst enemy, payola, was a good thing, kept quiet, now they pay the price.

    The Internet, burners, changes everything. The harassed custmers now have more options to the overpriced lousy music being fed by the cartels.

  3. Reader's Write Says:

    8% is just not good enough. I have increased my purchase of non-RIAA affiliated music by 200% in 2005 while reducing my acquisition of RIAA product to 0%.

  4. Reader's Write Says:

    MTV used to be huge when it came to promoting artists. When they first started out they were 24 hour videos and NO commercials. Then it got to the point where they played so few videos that they became irrelevant. They do now have all music channels but I don’t think they are always part of a basic cable package. The RIAA certainly has enough money to start their own all music video channel, but seems to be mostly interested in ripping off artists and suing file sharers.

  5. Reader's Write Says:

    This isn’t anything unexpected or even suprising. We the customers have been saying for years that the industry doesn’t get it and that music costs were too high. That the costs of albums aren’t in line with the product.

    The customer
    * isn’t the one that decided to abandon singles.
    * isn’t the one that decided DRM should be included in music.
    * was the one that decided that rootkits should put into music.
    * wasn’t the one that decided to try and make criminals out of those that buy such products and then want to use it as their lifestyle dictates.
    * isn’t the one that wants to call their users criminals
    * isn’t the one sueing
    * isn’t the one that wants payolla influancing radio playback
    * isn’t the one colluding to fix prices
    * isn’t the one that cut mom and pop stores out of the running
    * isn’t the one that can’t get it together on a common format that works for every player and every customer
    * isn’t the one demanding that courts replace the parent with a guardian so that they can sue a child
    * isn’t the one that thinks 128 bit rate is the same as cd quality and should have the same price
    * isn’t the one that wants to find some justification to raise prices yet again
    * isn’t the one that dropped tons of artists from the roster to save costs
    * isn’t the one that decided not to move all artists on to newer formats
    * isn’t the one that pushed for new laws to extend copyright to what amounts to forever, as you will die of old age before they run out.

    This could go on and on but in essence the industry has lost touch with its customer base. Rather than go the route that inspires new listeners and exposes them to new music, they have gone the route of suing their customers to try and drive them back to the fold and attempting to do the same thing to the internet they did to the radio, which is lock it up from all comers. The customers aren’t having it and they are telling them so by not buying the same old same old.

    The Greatest Hits of 40 years ago aren’t hitting it big for new prices. The newest offerings don’t have staying power. They are on the charts and off them nearly within the same business quarter. That means the catalog sales aren’t going to be there either. That’s 30% of their potential future sales gone too.

    Putting up enterainers that can only look good and dance isn’t doing it for those coming to see a live concert. For live concerts, you gotta actually play. Lipsyncing isn’t going to cut it and doesn’t. In the Ashley Simpson affair, the sound engineers didn’t get it, they’d been doing it for years and was considered industry standard. The fans got it; they knew from then out they weren’t getting what they were paying for, customers know it too.

  6. Reader's Write Says:

    I just wanted to point out that the music industry has abandon me. I’m a huge music fan and have the money to purchase the music that I like. I’m 25, however, and it appears that the major labels aren’t all that interested in my $$.

    In fact, in 2005, not one album came out that I thought was worth buying. When I do hear a song worth my interest, I heard it from a friend who told me to download it.

    I understand that I’m at a point in my life where I’m not going to be buying cds like I did when I was 15. However, to completely forget about me is ridiculous from a business perspective.

    Brandon

  7. Reader's Write Says:

    “Could it be that this’ll end up like the crash of the 30s when executives were throwing themselves off tall buildings?”

    Doubt it, most of them were throwing themselves off buildings in shame. Does anyone think the cartel suits have any shame at all?

    But if you are an artist and your sales have fallen, sue your cartel. They are the reason you’re not selling like you used to. They’re costing you money, it’s time to cost them some.

  8. Reader's Write Says:

    The reasons why the record industry has big problems selling cds:

    1. They are overpriced period.

    2. the same fucking bullshit rerelease and repackaging of previously released albums and cds.

    ( for instance how many jimi hendrix releases and reissues can a person stand?)

    3. they recording industry has been caught up in price fixing scams too numerous to mention.

    4. the sony cd root kit scandal did not help their image at all.

    5. The same old tired and treadworn alternative and rap groups no talents permeating the airwaves with their digusting noise pollution.

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