Dave, I posted some comments on your post at rawkblog and I want to bring them here, too. Many of the things that you cited as "Fact," free promotion, limited availability of drm free music, the merch and touring myth, mp3 downloads are not lost sales, downloaders behave differently than normal consumers, are nothing more than rationalizations for piracy.
Regarding the unavailability of drm free music: for $30/month you get 100 downloads at eMusic and 90% of the indie labels are on there. Sup Pop and Saddle Creek are missing, and those are the only two that I regularly buy from. That also leaves you enough room to try things you may be unsure of buying.
Regarding free promotion: This is up to the artist and label if they want their music leaked. Not someone with an advance.
Regarding downloads do not equal lost sales: This assumes that the listener primarily listens to cds. As the share of legal downloads vs physical sales continues to increase, this point will be harder to defend.
Regarding merch and tickets: Not every band you "Try" is a touring band, nor are they necessarily coming to your town. Also, as Bond has pointed out before, this doesn't cover the bands that aren't already big enough to draw big audiences in the places between NY and CHI and CHI and LA. This also assumes that every consumer of recorded music is a consumer of live music, or there are enough consumers of live music to cover those who don't go to shows.
Finally, regarding the downloaders buy more myth. I know we've argued this point before, but I've never seen statistics to validate the contentions that downloaders buy after they try. All the arguments I've seen for this position fall into the category, "Since I try it then buy that means everyone else does." The same logic can also be used to argue the opposing position.
Posted by: BillRocksClevelandbut I've never seen statistics to validate the contentions that downloaders buy after they try.
Posted by: sean gramophonePosted by: BillRocksClevelandbut I've never seen statistics to validate the contentions that downloaders buy after they try.
Um, okay, here's some stats. From Canada's equivalent of the RIAA. Canada, incidentally, is one of the most wired countries on the planet (especially among youth).
Al that says is that 75% of respondents have bought a track after downloading first. It doesn't say how often they do it; in fact, it says only 21% of P2P users have then gone on to buy music 10 or more times, which is pathetic (no idea if that's 10 times ever, in a year, or whatever, since this summation of the report doesn't tell me and I'm not bothering with that pdf). Furthermore, that means a full quarter of Canadian music listeners never buy things they p2p, which is startling. And those most willing to simply steal and not buy are teens, which is problematic in itself.
Posted by: scottp4kPosted by: sean gramophonePosted by: BillRocksClevelandbut I've never seen statistics to validate the contentions that downloaders buy after they try.
Um, okay, here's some stats. From Canada's equivalent of the RIAA. Canada, incidentally, is one of the most wired countries on the planet (especially among youth).Al that says is that 75% of respondents have bought a track after downloading first. It doesn't say how often they do it; in fact, it says only 21% of P2P users have then gone on to buy music 10 or more times, which is pathetic (no idea if that's 10 times ever, in a year, or whatever, since this summation of the report doesn't tell me and I'm not bothering with that pdf). Furthermore, that means a full quarter of Canadian music listeners never buy things they p2p, which is startling. And those most willing to simply steal and not buy are teens, which is problematic in itself.
Also, only 28% of respondents could say they bought more music than a year ago, which is also sad. These stats don't exactly seem rosy, despite the best intentions of the reporter who cherrypicked them and the potential biases of their sources (people are being asked to make honest admissions about their buying/stealing/borrowing habits, which I'd guess tilts the results favorably toward "borrowing" and "buying")
Yeah, I agree. The industry is fucked up. But to me it's at least suggestive that the numbers aren't as skewed as people upthread were guesstimating. "For ever [2 purchasers] there are 50 who never buy anything..."
Posted by: maura
i also like how everyone invokes the spectre of the riaa every time they're confronted with actually PAYING FOR RECORDED MUSIC. because of course you only download and don't buy major-label stuff, right? right.
The P2P network to which I belong doesn't allow RIAA stuff. So I either preview the stuff on AOL, or get a really good feeling, or just don't bother with it. Hate to have those sorts of blinders, but life is life and CDs are $18.99.
And I've no doubt there are people who don't buy music, and people who don't buy music suck. I can't be responsible for others' behavior, and obviously we're talking a huge mass of illegal activity, but it's a system that works for me as a fan and as a consumer.
Posted by: scottp4kmusic is getting its ass handed to it by films/dvds, video games, and tv-- all of which people value enough to own and pay for. Music is in a serious decline, and this idea that its worth = $0 is one of the underlining causes. edit: or, at the very least, one of the most telling results. probably a bit of both though.
Posted by: maurathis is a nice fallacy--and it's true in some cases, including ones involving me!--but it's not true in the BULK of cases. do you really think the bulk of OiNK users were into out-of-print stuff? is there any blog out there that doesn't specialize in popular music that gets 180,000 visits a day?
the bulk really doesn't matter. What matters is the trend makers. Oink consistently predicts indie winners in between the more mundane big labels stuff (which really is pretty different than billboard/mtv chart.)
Posted by: scottp4kmusic is getting its ass handed to it by films/dvds, video games, and tv-- all of which people value enough to own and pay for. Music is in a serious decline, and this idea that its worth = $0 is one of the underlining causes. edit: or, at the very least, one of the most telling results. probably a bit of both though.
not totally sure i can sign off on this connection completely; i mean i think it's a matter of ease and availablity with music. i mean, it's certainly possible to rip a DVD or video game (with the latter, I'm assuming it's possible), but it's not as easy or institutionally-sanctioned as ripping CDs. i mean, the DVD player on my mac doesn't give me the "Import" option, if you know what I mean, and television operates on a much more ephemeral mode of transmission, and it's subscription-based.
however, i totally agree with you that kids are growing up thinking that music has less "value". also, i think the worth it's gained now with them is a "use" worth instead of a "poetic" worth. like, i think it's pretty common for the average bittorrent user to go and find so-and-so's greatest hits on some random bittorrent site (or acc. to my students, Limewire) because they want to play it at their house party during Homecoming weekend.
in a way, music's turning into digital cable if anything, in terms of the mode of transmission. available 24 hours a day, largely a la carte, requiring a 700 dollar receiver and a 50 dollar-a-month cable bill.
Posted by: Dave Rawkblogwhat always gets forgotten in these discussions is the fact that all the entertainment industries are in the shitter these days. Movies: impending strike? TV: advertising trouble thanks to lower ratings? Yup. Someone commented on my blog that piracy is always the easy go-to but the fact is there are plenty of factors that aren't helping sales. Namely, people have too many options on a Saturday night, whether or not they can download those options from bittorrent.
Fragmented audiences have done what they've done, but music and publishing are suffering hard. Box office figures are as high as they've ever been; if there's any problem with the film industry, it's a glut of product and an upfront spending problem. And strikes are a regular occurrance, not a symptom. The DVD sales plateau was inevitable, and I won't mind watching studios suffer as they do what the music industry has traditionally done to hate its consumer base: Sell the same shit again and again. TV ratings are fragmented and falling, but network TV still commands the largest single concentration of eyeballs and has ad $ leverage. I know nothing about the video game market, but can't help but think that's got to be booming.

Listen, I'm not saying Oink/free P2P is the way to do it... I don't know exactly what the answer is. All I'm trying to say is that there are a lot more things for kids to invest their time these days; and to think that "if we could just go back to those pre-P2P days of the 90s" that music sales figures would bounce right back is, I think, a very foolish supposition to make.
I'm not pro- or con- Oink; I'm just making an observation. Money is one thing, and sure, it's important, but something that's maybe even more valuable these days is being able to keep and hold these kids' ATTENTION and getting them to invest some of their limited TIME in your art/artist/release/etc. That way, at least you've still got them *interested* in the music, on the whole, and maybe some sort of financial compensation will come out of that somehow, somewhere, down the line. As it is, I fear that the aggressive dismantling of these P2P communities will ultimately just have the effect of making the kids become even more disinterested in music, and just devote more of their time to all that other stuff (games, Youtube videos, whatever it is they do with their cellphones, etc.)
Posted by: adam_beggars
the future's so bright, i gotta wear shades
As long as you pay for those shades, motherfucker. 
Jeremy Banks, Head of the IFPI’s Internet Anti-Piracy Unit, said: “OiNK was central to the illegal distribution of pre-release music online. This was not a case of friends sharing music for pleasure. This was a worldwide network that got hold of music they did not own the rights to and posted it online.
Posted by: a lot of people, actuallyryan, i wish you would write like that more often...
:)
I do think that the whole "fragmentation of consumer's time/money" thing is taking much more of a toll on the industry than everyone thinks. Sure, I do think that file-trading/P2P has hurt the industry, but I think it's a really bad assumption to think that the complete dismantling (were it even possible) of the whole file-trading system would work as a panacea for the industry's ailments. I honestly don't think that 2000 downloads of an album on Oink equates to 2000 lost sales of an album-- I think that moreso, it simply equates to 2000 people hearing the album that otherwise wouldn't have done. Now that Oink is gone, all those kids are not suddenly going to go out and drop $15 for that new John Vanderslice CD because now that's the only way they can get it -- they're just going to go without it. And that doesn't seem like it benefits *anyone*. I mean, which is better? Selling 1000 CDs and having 1000 people hear your music, or selling 1000 CDs, but having 3000 people hear your music? To the accountant, it doesn't matter; bottom line is 1000 CDs sold. But what about to the artist, or, for that matter, to *anyone* who has an interest in that artist's career in the long term (manager, label, booking agent... the list goes on)?
This is exactly what I think, too. In fact, I agree with it so much I'm not even going to abbreviate the phrase "on the money."
It is important to remember that sales downturns are not atypical in the music business, and that investors remain interested in selling records. The current situation closely mirrors the post-disco bust in the early 1980s. Specifically, real revenues fell by the same percentage during the years 1979 to 1985 and 1999 to 2006. The record industry also continues to generate profits and attract interest from investors. For example, a private equity firm just last month completed a ?3 billion takeover of EMI, and an investment group purchased the Warner Music Group in 2004 for $2.6 billion.
Investors seek out high returns, and these large investments suggest that many believe that they can make money in the record business. It also implies that the industry is still profitable. While profit data can be hard to come by, we get a small window from Warner, the only publicly traded standalone record company in the U.S., which enjoyed operating margins of 7 percent and 10 percent from its recorded music segments in 2005 and 2006.
As for the future, I am dubious about making forecasts. Much will depend on the choices the major labels make on key issues (will they run experiments to determine the optimal pricing of digital downloads?) and the arrival of still-unforeseen technologies (which could allow labels to more cheaply distribute music, or lead to new forms of piracy). At the same time, I reject the argument that recorded music is close to death, simply because the financial incentives to create music have never been particularly high. In 2005, less than one in five albums were released on a major label, and even among those releases, fewer than one in fifteen went gold (the usual measure of record success). With such daunting odds, recording an album may have seemed like a pointless task. But in that year, nearly 44,000 albums were released — enough to provide almost three consecutive years of listening. Regardless of what happens to companies that produce and distribute music, I am sure that recorded music will continue to be made.
Posted by: SongbyToadAnd Ryan is absolutely right about what seems to be a grim determination to completely alienate every last customer on behalf of the recording industry. Depressing to watch. But not much more so than people squirming about trying to justify paying nothing for music. It's the same greed, just directed somewhere slightly different.
i agree with every point made in this paragraph.
Posted by: sean gramophoneryan, i wish you would write like that more often, instead of one-liner anti-indiekid snarks. (i miss the way your blog used to feel.)
...and I miss the way I used to feel about music.
Finally someone gets some real answers:
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