We now enter the 7th year of CD sale declines, and nary a person in the industry is willing to speaketh the truth (‘cepting Lefsetz the pariah).
Forthwith, an outsider from the East was compelled to do so. He seeth what the pros do not, for they art dumbeth beyond their years, and yeah, have shite for whence there should be brains, and know not the difference between thine own arse and thine elbow:
Hence, from outside the industry, he removeth the scales from thine eyes, and he said unto thee — GO FORTH AND SLASH PRICES BEFORETH ITS TOO LATE, YOU STUPID BASTARDS.
And lo, they heard but the did not understand. Instead, they chose to lobby for copyright extensions and engage in pederasty, but only on the weekends.
Sayeth unto me the truth, oh wise ass from the East, from outside the industry, so we may find redemption and rejoice once again in the land of profitability and unit sales growth.
Nay, sayeth the wise ass. Your products are over-priced, your clients have lost interest, your promotional machinary hath groundeth unto dust. Ye are like the elder woman, unable to conceive, yet unaware that your time hath past. I say unto thee like the Lord said unto Adam and Abraham and Moses: You best find a way to sell your product for half of what you are charging now — $6.99-9.99 retail at mosteth — or else you will continue your slide into oblivion, where you will be forced to walk the dusty earth, lost, hungry, with unslaked thirst, unable to get a good table at The Foundry on Melrose . . .
I have been saying this for more than a decade, but what the hell, let’s repeat it one more time: CDs as a product are not competitively priced. People with limited attention and other interests simply no longer care about buying music all that much.
It is not just that DVDs are so much a better value — that is
merely the starter issue. CDs are competing with multi-player games,
with blogs, with social networking sites, with online games, Wiis, YouTube, and the rest of the tubes on the internet.
That’s before we even get to the issue of free downloads, which are
not a legitimate business model in the eyes of the labels. As to the 1000s upon 1000s of artists freely streaming their music on
MySpace to fans, well, they will give you a different answer as to what sort of a business model free is.
A few excerpts:
"Despite a massive surge in digital music sales last year, the
popularity of the fledgling market is still not making up for the slide
in physical products, such as CDs.
According to figures released by
the International Federation of the Phonographic Industry, the global
recorded music market in 2006 slipped by 5% year on year to $19.6
billion last year, down from $20.7 billion in 2005.
news marks the recorded music industry’s seventh consecutive year of
falling sales, according to IFPI’s annual Recording Industry in Numbers
publication, as piracy continues to ravage the business around the
Sales of physical product fell 11% to $17.5 billion in
2006 as consumers turn away from purchasing CDs in favor of getting
their music through other means."
The 85% increase in digital downloads (to $2.1 billion), plus mobile phone ringtone revenues, failed to make up the difference.
I love this line "The results reflect an industry in transition," said IFPI
chairman and nitwit . An industry in transition. Kinda like VHS tapes are.
"Despite the global decline, 12 countries — Japan, Russia, South
Africa, South Korea, Ireland, Argentina, Indonesia, Hungary, Malaysia,
India, China and Venezuela — posted growth in their respective
recorded music markets during the year.
The top 10 respective recorded music markets in the world last year
were the U.S., Japan, the U.K., Germany, France, Canada, Australia,
Italy, Spain and Mexico.
On digital value alone, the top 10 markets were the U.S., Japan, the
U.K., South Korea, France, Germany, Canada, China, Italy and Australia."
Sadly amusing . . .
Music biz sales off for a seventh year: study
Billboard, Thu Jul 5, 1:45 AM
Music sales continue to fall
Digital fails to replace lost CD revenue
Variety, Wed., Jul. 4, 2007, 6:54am PT
Universal in Dispute With Apple Over iTunes
NYT, July 2, 2007