Digital Music sales flat 2009-2010

[Sir Terrence the Terrible]

As I have stated a few times, digital music sales are flat this last year, and there is nothing in the pipeline that suggests it will improve anytime soon. This ought to cause the music industry great concern, as not only are CD sales sliding, but digital downloads are not taking up the slack from those sales drops. Combine that with the fact that a record company makes very little money from the download, and it spells financial trouble for them for the foreseeable future. Movie rentals via downloads are not fairing that much better.

http://www.boygeniusreport.com/2010/09/27/nielsen-u-s-digital-music-sales-flat-in-2010/

[pixelthis]

Its called a depression.
Unless you are a Obamacrat of course, in which case the "recessions over !!
YIPEEE!:1:

[Smokey]

Another reason why download and CD sales are down might also be because of mediocre music. One look at music from 60s/70s/80s era and compare it to today music and one can see (hear) how lame some of bands are these days.

[Feanor]

As I have stated a few times, digital music sales are flat this last year, and there is nothing in the pipeline that suggests it will improve anytime soon. This ought to cause the music industry great concern, as not only are CD sales sliding, but digital downloads are not taking up the slack from those sales drops. Combine that with the fact that a record company makes very little money from the download, and it spells financial trouble for them for the foreseeable future. Movie rentals via downloads are not fairing that much better.

http://www.boygeniusreport.com/2010/09/27/nielsen-u-s-digital-music-sales-flat-in-2010/
I think Pix is right ... at least about the recession: welcome to the new, long term reality, BTW.

Boohoo about the record companies not making much money on downloads. At a buck a song somebody is sure as heck making money. Recent discussion revealed it isn't iTunes, so ...

I gotta laugh at people who blame Obama for the current gloom. Sure, he's been weak-kneed dealing with the Republicans, but to elect them back to a Congressional majority seems utterly insane given the whole "supply side economics" thing, plus superfluous wars, what got the US present predicament.

[noddin0ff]

It's probably piracy, plain and simple. Well, maybe 1 part economy, 4 parts piracy and 1 part flexible and legal streaming services. It's so easy to find, download and 'share'. Most of the music is bought by the youngish. They're mostly influenced in tastes by friends. Friends want friends to know what they're listening to...friends give friends a copy. repeat.

[Feanor]

It's probably piracy, plain and simple. Well, maybe 1 part economy, 4 parts piracy and 1 part flexible and legal streaming services. It's so easy to find, download and 'share'. Most of the music is bought by the youngish. They're mostly influenced in tastes by friends. Friends want friends to know what they're listening to...friends give friends a copy. repeat.
What impact piracy? No doubt it has a significant impact, but it is 'way too easy to exaggerate its effect.

To take a high estimate of the number of pirated copies then multiply by 99¢ to derive a lost revenue number is ridiculous. Just speculation on my part, but I'd bet that less than 10% of what's pirated would ever be paid for -- not at least at 99¢ a copy.

[kevlarus]

Another reason why download and CD sales are down might also be because of mediocre music. One look at music from 60s/70s/80s era and compare it to today music and one can see (hear) how lame some of bands are these days.


Totally agree with this. It's also why I watch limited movies these days. I'll rent the movie, that way if it's a "bomber", I've only lost a couple of dollars instead of 8+8+concessions. I haven't bitten on the "movies on demand/download" bandwagon, because I want minimum DVD quality if not BR quality (now that we have a BR player).

And Redbox has started providing BR's in the area as well for the same price.

Ok, last year I did get the Beatles "LOVE" album which was a reworked piece of art on both CD and DVD with 5.1 surround.

[3LB]

I'm sure piracy has a lot to do with it but don't forget to blame formatted radio.

People, even people who are inclined to buy physical formats, do not want to take wild stabs in the dark with regards to music. Even in hard times past, people bought music. But that's because it was music with which they were already prevy, i.e. music they heard on free radio. MTV used to be a source as well, but then they stopped playing music. Who the hell listening right now to one of thousands of Clear Channel classic rock stations need ever buy a CD of a classic rock act? How many times can record companies hope to repackage the same old compilations before they saturate that market?

There is so much great music out there that isn't attached to American Idol or an MTV, Disney or Nickelodian show. If people could get in their cars, turn on free radio, and hear modern music performed by modern artists you'd see an upswing in sales.

Record companies can also blame themselves, relying so much on creating phenoms rather than allowing non-circus acts time to cultivate an audience. The record companies have alienated much of the 'buying public' and Clear Channel has put that same 'buying public' on a deserted island.

However, anyone really concerned with the state of music could expend a minimum of effort and seek out new music, on the web or your friendly nieghborhood college radio station. I spend more money on music now than I did 20 years ago, and its mostly music I sought out.

[noddin0ff]

I'm sure piracy has a lot to do with it but don't forget to blame formatted radio.


I'd agree with this and add to it what I slipped into my post. I bet a lot of people ask themselves "Why buy a CD when I can go to Pandora" or other flexible services and see listen to what they like when ever they like.


What impact piracy? No doubt it has a significant impact, but it is 'way too easy to exaggerate its effect.

To take a high estimate of the number of pirated copies then multiply by 99¢ to derive a lost revenue number is ridiculous. Just speculation on my part, but I'd bet that less than 10% of what's pirated would ever be paid for -- not at least at 99¢ a copy.

I get your argument, but tend to think that the impact is probably under-exaggerated. Take my own contribution to the revenue stream as an example. I tend to feel an obligation to support artists. I've steadily bought CDs for over 25 years now and have over 1000 in my collection.

Many many are used. There's one ding in the revenue stream that we didn't mention.

I don't really have time or spend effort to search out free digital copies. Partly 'cause I'm a lossless snob and that's harder to find. I would ballpark that about 10% of my listening has been digitally 'gifted' to me. There's a 10% ding in the revenue stream. And, just for kicks, you can google 'mediafire + 'album of choice' and hit just about anything you want. Free anonymous filesharing services...

I know how many CDs I taped in college to add to my collection. It was a lot. If I had the digital capabilities then, I know I would've obtained easily 50% of my listening from my friends. And, I would've share the 50% that I purchased.

I still swap with my work colleagues. Honestly, my rationale is that the more I listen to, the more good stuff I find, the more I seek out and purchase music. So there is an argument for me that I buy more due to sharing. But, I'm also aware how tenuous that 'need' to pay really is.

[audio amateur]

I haven't bought a CD in a year. That's because I have instant access to a vast music catalogue made possible thanks to Spotify, a music streaming program. There are audio adverts ever now and then, but it is free and extremely convenient.

[pixelthis]

I haven't bought a CD in a year. That's because I have instant access to a vast music catalogue made possible thanks to Spotify, a music streaming program. There are audio adverts ever now and then, but it is free and extremely convenient.

And just what kind of fare is offered on this service old chap? Albanian folk songs?
AUSTRAILIAN bird calling contests? Dictonaries for the blind?:1:

[02audionoob]

I for one see no shortage of good music available. I won't claim to know why sales are flat (other than the economy), but I can find just as much music I like from this past decade as any other.