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http://www.insanely-great.com/news.php?id=802
Report: It''s the Slump Killing Music Sales, Not CD Burners, Stupid.
By Remy Davison, Insanely Great Mac
August 15th 2002
It''s not file-sharing causing the music sales drought. Apparently.
Research firm Forrester Techstrategy have released a report examining the future of
digital music distribution, examining the pitfalls faced by the industry, and offering
a range of solutions for music publishers.
Apple''s iPod MP3 player even gets a mention, but the report''s main findings are
worth citing:
- 31% of consumers download music and burn CDs often.
- These frequent digital music users buy 36% of all CDs.
- Paid services don''t match the "Music Bill Of Rights."
- Paid downloads will restore sales growth in 2004.
- In five years, 39% of digital sales will be downloaded singles.
- Established acts like Springsteen reap download rewards.
- Labels concentrate on promotion and accounting systems.
Among the statistical forecasts are numbers of digitsal music users and downloads for
2002-2007, together with figures suggesting that of the four digital music segments,
some have experienced strong growth, rather than fall offs (paid music downloads is
one area). Other issues assessed are delivery of digital audio by companies such as
RealNetworks, using Real music server networks.
Analysis: We''re skeptical of reports such as these. Like government reports, these
can often be classified ''advocacy documents'' (i.e., they advocate pre-determined
policy or business decisions, pushing a particular line). Clearly, music companies
have been compelled to move into areas they really didn''t want to go (i.e., digital
music publishing), which is treacherous, uncharted water, and doesn''t ensure the fat
profits that CD sales once did. Telling music publishers they really can make a dollar
distributing music on an internet model might make them feel better. But one wonders
who''ll be around to explain why internet music sales in 2007 tanked.
Post your comments at:
http://www.insanely-great.com/news.php?id=802
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