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Posted in industry | music on February 25, 2009
the Pirate Bay trial continues...

The music industry has lost more than 30 percent in sales since 2001 because of illegal downloading, a top industry official said Wednesday, giving evidence in a Swedish trial.John Kennedy, the head of the International Federation of the Phonographic Industry, told the Stockholm District Court that Swedish site The Pirate Bay had become "the No. 1 source of illegal music," following court actions against two other popular file-sharing sites, Grokster and Kazaa.
"Over a period of time, piracy has done immense damage to the music industry," Kennedy said, adding that illegal Internet downloads had caused industry sales to tumble from $27 billion in 2001 to $18 billion in 2008.
Kennedy testified on behalf of a handful of record companies, including Sony BMG and EMI, which together with movie companies such as Universal and Warner Bros. Entertainment Inc. are seeking 117 million kronor ($13.2 million) in compensation and damages. [AP]
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Posted on February 25, 2009 12:00 PM
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Comments (7)
I'm still confused how you can be a source of illegal music when there is no music on the site. From a semantical point of view that's just plain incorrect.
Posted by Anonymous | February 25, 2009 12:08 PM
I would argue the 30 percent lost sales has little to do with pirating and more to do with the fact these labels keep churning out crap.
Consumers are becoming less interested in cookie-cutter copies of whoever had a No. 1 the week prior and are choosing not to buy-in to these prefabricated artists, which is something the music industry can't fathom: people can just choose not to buy an album without downloading it.
Posted by Sober Second Thought | February 25, 2009 12:58 PM
^^^
That's the kind of fresh, opinionated attitude we need. I would like to offer you a job in Music.
Posted by RIAA | February 25, 2009 1:13 PM
No, 18.99 list price for a CD had nothing to do with that decline at all. No sir.
Even without the ipod, anyone with half a brain can see that you can buy a spindle of blank cds for a few bucks. They charge almost 20 bucks for one, and you know it only costs them a few cents each to make, and the artists are only getting maybe a dollar out of that 18.99.I buy most of my Cds at shows, so I know that the band is at least getting some money, and it isn't all going to some talentless sleazebag in a corner office.
For me to pay 18.99 for one CD, I have to be damn sure that every track on the album is worth paying for. Therefore, I only buy a handful of Cds a year now. If CDs were a substantially lower price, impulse buys would surge. People would only need to know one or two tracks to make a CD worth the purchase price. Sure you would make less per unit, but that would be made up for in volume by a large amount.
Another intersting note is that the current way that music is produced in the studio makes us lesslikely to attach ourselves to it emotionally. most albums now are produced to be the same volume throughout most f the tracks. There is no dynamics. It is engineered to be heard in restaurants and shopping malls. There are no peaks and valleys. Peaks and Valleys are what makes music interesting to your brain. Without those peaks and valleys music becomes boring. People are less likely to buy it. Back in the day, if you were a producer, and you allowed a recording to clip anywhere, you pretty much failed. Now many albums clip almost constantly. FAIL.
Now give me my vocoder and some computerized beats.
Posted by Kurt C. | February 25, 2009 1:28 PM
the Music section of Borders?
Posted by amirite!? | February 25, 2009 1:42 PM
i buy music on a weekly basis, just very rarely from emi, sony, universal, or warner. they've missed the boat; people who would pay for their product are not interested in the product they are trying to sell.
Posted by Anonymous | February 25, 2009 1:45 PM
Do I buy fewer CDs than I did before music pirating existed?
Yes, absolutely.
Do I see more live music than I did before music pirating existed?
Yes, absolutely.
Do I purchase merchandise and music from shows more than at retailers than I did before music pirating existed?
Yes, absolutely.
Does music pirating therefore circumvent the need for (major) labels?
Probably not, but in this case more of my money goes directly to the artist than it did under 1990s levels.
Posted by Anonymous | February 25, 2009 1:50 PM