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RIAA lays the blame
Posted by DMemberSuper in on February 26, 2002 at 11:02 AM



The Recording Industry Association of America (RIAA) is blaming online piracy and CD burning as the major culprits for a 10.3 percent slide in 2001 music sales. According to RIAA data, total U.S. shipments dropped from 1.08 billion units shipped in 2000 to 968.58 million in 2001. The dollar value of all music product shipments decreased from $14.3 billion in 2000 to $13.7 billion in 2001 -- a 4.1 percent decrease.

The Washington, D.C.-based RIAA, the principal trade association for the music industry, also released recent survey findings that showed 23 percent of music consumers said that they did not buy more music in 2001 because they downloaded or copied most of their music for free.

Commissioned by the RIAA and conducted by Peter Hart Research Associates, the survey contacted 2,225 music consumers between the ages of 12-54.

In the 2001 survey, over 50 percent of those music fans that have downloaded music for free have made copies of it. Just two years ago, only 13 percent copied it onto a portable device or a CD burner.

Coinciding with the increase in copying music, the study found that ownership of CD burners has nearly tripled since 1999: in 2001, two in five music consumers owned a CD burner compared to 14 percent who owned one in 1999.

"This past year was a difficult year in the recording industry, and there is no simple explanation for the decrease in sales. The economy was slow and 9/11 interrupted the fourth quarter plans, but, a large factor contributing to the decrease in overall shipments last year is online piracy and CD-burning," said Hilary Rosen, president and chief executive officer of the RIAA. "When 23 percent of surveyed music consumers say they are not buying more music because they are downloading or copying their music for free, we cannot ignore the impact on the marketplace."

Other RIAA findings included:
* Full-length CD units dropped 6.4 percent in 2001, representing a $12.9 billion dollar value within the market and a 2.3 percent decrease in dollar value from 2000. Additionally, CDs continue to be the format of choice among consumers. Whereas CDs represented 87 percent of units shipped to U.S. markets in 2000, CDs represented 91 percent of all units shipped in 2001

* The DVD music video has shown its continued popularity with a 138 percent increase to 7.9 million units shipped in 2001. DVD music video represented a $190 million market in 2001, an increase of 137 percent from $80.9 million market in 2000

* Cassette units shipped to U.S. markets decreased by 40 percent in 2001, representing a $363 million dollar value. This represents a 41.9 percent decrease from 2000

* In 2001, close to 2.3 million LP units were shipped to U.S. markets, an increase of 3.7 percent over the 2.2 million units shipped in 2000. In 2001, the LP format represented a $27.4 million dollar value.

The RIAAs year-end numbers, which are compiled quarterly by the accounting firm of PricewaterhouseCoopers LLP, represent direct data from companies that distribute approximately 90 percent of the pre-recorded music in the United States. To calculate unit shipments and dollar values for the remainder of the market, PricewaterhouseCoopers utilizes retail sales data from SoundScan to estimate shipments by non-reporting companies.

By Roy Mark

*************************************************

Relevant webpages:

Related article at the BBC
The RIAA

2001 Year End Manufacturers Shipment & Value Report (In .pdf format).



User Comments

Advancedbackmann
Date: February 26, 2002 @ 12:10 PM
I'd blame the poor quality of the music they are releasing.
DMembernontoxic
Date: February 26, 2002 @ 12:20 PM
next they'll try and blame music piracy for the downfall of the economy too
AdvancedFrawgster
Date: February 26, 2002 @ 12:22 PM
that and rising cd prices, dishonest/shady/monopolistic practices undertaken by the labels, a rising feeling of disdain for the labels because of their utter unwillingness to cooperate and their "sue-happy" attitude. this report should be a surprise to no one. im fairly certain that most of us saw this one coming. this doesnt change a damn thing though. people will continue to download, the labels will continue to sue everyone and their dogs, the labels will continue to release copy protected cds, the labels will continue to lobby the govt to get their shit agendas passed, and most importantly, we, the consumers, will continue to get screwed every time we choose to go out and buy a 5 inch plastic disc with 2 good and 16 shitty tunes on it.

ive said it before...ill say it again...its the LABELS that need to reconsider their actions. its the LABELS that need to review the way they choose to do business. WE are their CUSTOMERS. WE pay their salaries. it is their job to give US what WE WANT, not what they THINK we should have. if i go to mcdonalds and order a big-mac, i get a big-mac, not a 6 piece order of chicken nuggets. until the labels get their heads out of their asses and realize that they need to make some changes, they will CONTINUE to lose out.
Advancedthumbtack
Date: February 26, 2002 @ 12:58 PM
Couldn't have sadi it better myself Frawg....
Rockmilladrive
Date: February 26, 2002 @ 1:16 PM
I mostly agree, Frawg, but the one thing I don't yet see is the industry "losing out." Wait, lemme address this to Hilary. ;) (Wink)

I dunno where to begin. First, I'd like to say, Hilary, you are a fat fuckin' cow. Now, I don't usually hurl names when I'm about to make some valid points, but you _are_ a fat fuckin' cow. I would dislike your organization so much less passionately were you not in charge. I had to get that off my chest; now I can move on.

I'd like to know how much of the artists' money was spent on this survey.

"When 23 percent of surveyed music consumers say they are not buying more music because they are downloading or copying their music for free, we cannot ignore the impact on the marketplace." That's right, you can't (or is that cun't), so you should do something that will appeal to that growing number of people who are finding their music elsewhere? Why are you fighting the trends? Offer them something more than your traditional services! You can make so much more money if you'd spend the artists' money less on surveys and more on delivery development. You'd make more money, and you'd be able to take more money from the artists. Their pittances would go up and everyone'd be happy on that end.

I guess this wouldn't be a good place to reiterate that less than one-tenth of a percent of all signed artists are above water in royalties, and the fraction of artists that are even signed is so exponential, I won't even begin to guess its minutia. Perhaps it's time to offer the public more artists at a lower cost of delivery?

At the same time, you've still got 77% of the "consumers," as you so eloquently call them, yet your sales are down merely 4.1%. ...in poor economic times. As I've pointed out seemingly a zillion times, sales are down due to the penny-pinching times. If the RIAA would even think about it, after the sales peak of 2000, their 4.1% decrease, in light of the times, could actually be considered prosperous. As I've mentioned before, record sales went from a peak of 140 million units moved in 1927 to a mere 6 million in 1932. Where were all the "pirates" scoring their music for free then?

Where in the survey does it specify how many people went out to buy copies of the music when they found a coupla songs on the net? Does every download represent to you nothin' more than a lost sale??

Where does it state how much of the consumer base is sick and tired of payin' 19 bux for an album w/2 or 3 songs they will like? ..yet you still have only a 4.1% decrease in income.

Perhaps your expectations should be a bit more modest these days. Did you really expect the continual growth of the past decade to continue indefinitely??

I suppose the increase in LP and DVD sales can be attributed to the fact that they aren't reproduced at home en masse? It's all about control, ain't it?

Take your cut from the sales of computers, burners, and blank media, and stop spendin others' money frivolously. ..it could be bad for your image. ...you fat fuckin' cow.


ps: I know i was all over the place, and talkin' in mostly incomplete thoughts, but i have little time and this article really set me off.
AdvancedFrawgster
Date: February 26, 2002 @ 1:19 PM
another thing...50% of those surveyed downloaded music and made copies of it, fine, ill buy that. but it seems rather simplistic to me. was the survey really that basic?

RIAA: "do you copy the music you download?"

Surveyee: "yes"

RIAA: "thank you for your time"

why was it not mentioned WHY they download? was it just left out? was it not asked? or does the riaa not give a shit? im gonna go with the latter...they just dont give a shit.
DMemberhitler
Date: February 26, 2002 @ 5:33 PM
"Perhaps it's time to offer the public more artists at a lower cost of delivery?" i couldnt agree more
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