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Grasping At Straws And Sucking Wind
Posted by on January 15, 2007 at 9:52 AM   (printer friendly)

http://www.azoz.com/

"Grasping at Straws and Sucking Wind
by George Ziemann -- January 13, 2007

Nielsen/SoundScan reports of last year's music sales showed up some time last week and it looks like 2006 was another great year for anyone who dislikes the RIAA membership. Nielsen really tried to spin it hard to make it sound like digital sales are making up the slack.

Nielsen will tell you that customers made more music purchasing decisions in 2006 than ever before (or at least more than 2005). This is true. More purchasing decisions. CD/album sales declined again. Downloaded singles are still growing.

Here's how that works with a hypothetical scenario in which albums cost $10 and a single costs $1, over an extended period of time, just for the sake of easy math.

Year 1
100 albums sold. Total income -- $1000

Year 2
90 albums sold. Income -- $900
20 songs sold. Income -- $20
Total income -- $920
10% increase in purchasing decisions.

Year 3
70 albums sold. $700
60 songs sold. $60
Total income -- $760
Singles sales up 200%; purchase decisions increase 18%

Year 4
65 albums sold. $650
90 songs sold. $90
Total income -- $740
Singles sales up 50%; purchase decisions increase 19%

So the whole "purchasing decisions" thing indicates nothing. Just an especially lame attempt at a smokescreen to take our attention away from the vortex of suckage the record labels have fallen into.

EMI seems to be in the worst state of panic right now. Heads rolled in the executive offices this week and they're going to cut about 850 more people from its recorded music division, which will cut their roster even further, which will mean they'll put out even less music next year with less variety, more bad falsetto, miasmatic blondes and cartoons because, hey, they were popular last year. And they still can't sell Beatles tracks.

Another sign that they're all in trouble is that, after a mere decade of epic blockheadedness, they're finally starting to think that maybe there's something to this mp3 thing after all and also may actually have been introduced to the thought that DRM might not be the way to go. They're still trying to wrap their greedy little minds around it.

Meanwhile, the video game industry passed the $12.5 billion mark this year. I can't help but wonder if any of that money came from music purchasing decisions wherein the actual decision was to purchase a video game instead. "



Thanks George for the enlightening information. The RIAA has always tried to sell full CD's instead of singles in an effort to increase profits. Let's face it, when they do sell more complete CD's, they do make more money. But people do NOT want to buy and pay for the FULL CD for that one song they like.

This issue is what began Napster and the entire RIAA process of suing its potential (and existing) customers. No one wanted to pay 16.99 for a CD with one good song on it. Since the RIAA stopped making singles, there was a void in the marketplace. That void was filled by Napster, and the rest is history. The RIAA will NOT make as much money selling individual tracks. Instead of suing, try adapting your business model to these facts.

--- CopyrightLawSucks


User Comments (These do not necessarily reflect the beliefs of this site)

vzeye  
Date: January 15, 2007 @ 10:18 PM
:marilyn:
Does that mean that blondes have more fun?

gdZiemann  
Date: January 16, 2007 @ 12:37 AM
Yes, but dye jobs or peroxide do not count and there WILL be a test.

Twarrior  
Date: January 16, 2007 @ 2:00 AM
This is great! I hope I can whip BRIAA into shape fast enough so that we can be the final spiteful nail into the RIAA Coffin! Make no mistake about the fact that 99% of the RIAA's downfaul will be their own fault. But i'd love to get us into that final 1% credit statistic. Just for the sake of celebration. So when and if that happens -- who's buying the champaign?! :-D

Twarrior  
Date: January 16, 2007 @ 2:03 AM
Oh and Shmoo -- remember how i said supporting legal RIAA downloads hurts the RIAA and you thought i was smoking crack or something? This article makes my point far more brilliantly and mathematically than i'll ever be capable of. :-)

Twarrior  
Date: January 16, 2007 @ 2:05 AM
If their profits decline it doesnt mater that they'll make SOME money. They won't be able to budget for shit. If they can't budget, they're in choas and they'll inevitably DIE. It would be like if you were starving and a pile of food was in front of you but surrounded by a force field making it inaccessable. At that point it doesnt mater that the food is in front of you. You're still dead.

CopyrightLaw...  
Date: January 16, 2007 @ 12:01 PM
"Oh and Shmoo -- remember how i said supporting legal RIAA downloads hurts the RIAA and you thought i was smoking crack or something? This article makes my point far more brilliantly and mathematically than i'll ever be capable of. :-)"

Well not exactly. How much less profits would the RIAA make if NO ONE downloaded their music AND NO ONE bought their CD's?? The record labels represented by the RIAA created a void when they decided NOT to make singles anymore. This void was naturally filled in by downloading. All this proves is that the RIAA was right, they make more money selling full CDs. Their costs for selling singles is about zero when it is downloaded.

Downloading does help the RIAA to some degree, because, at the very least, it will promote their artists by having their music downloaded and played. Downloading still increases an artist's exposure, which does promote the artist. Today, the RIAA is getting its hands around all artists profits, whether it is a concert tour, t-shirts, etc. The RIAA wants more of those pieces of the pie, and downloading promotes these elements.

gdZiemann  
Date: January 16, 2007 @ 1:57 PM
"How much less profits would the RIAA make if NO ONE downloaded their music AND NO ONE bought their CD's??"

While this is true, it is unrealistic and requires that suddenly they stopped fooling the people you can fool all of the time.


CodeWarrior  
Date: January 18, 2007 @ 9:12 PM
As usual George, excellent article!
~Code

Twarrior  
Date: January 20, 2007 @ 5:26 AM
In a perfect world, everyone would stop downloading. But we can't abandon the music we grew up with, even though it's RIAA music. Rome wasn't built in a day and you can't expect overnight success. DO NOT DOWNLOAD IT is the PREFERED choice but seriously hurting their profits is definately a good second option!