Much ado about nothing

Nick Douglas

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Here is one thing that ticks me off about the recording industry. They whine and whine and whine about illegal file sharing of music. They use it as an excuse for falling sales and they act like it makes you a lowlife criminal if you download music via file sharing services.

Personally, when I buy albums I either go to Best Buy or I use iTunes. I do have a good number of friends who do download music using file sharing services. In my conversations with them, I have found that it's extremely rare that they will download an album that they would have purchased anyway. I maintain that most illegal music downloads are of albums that people would like to have, but that they don't feel strongly enough about to buy anyway.

Media outlets like Variety love to perpetrate the stereotype that music downloaders are killing the recording industy. Today's edition of the paper was a perfect example. Even as they are citing studies that show that file sharing services have a minimal impact on the recording industry, they are writing articles where the overall theme acts like file sharing services are a pox on the recording industry.

I'd like to see the recording industry get their crap together and just put out better music. THE COLLEGE DROPOUT by Kanye West and Usher's new album are perfect examples of tits albums that will continue to do well even in the file sharing world. Recording industry executives should worry about putting out more great albums like those two and worry less about college kids downloading albums that they wouldn't be able to afford, anyway.

Here is the referenced article from Variety:

Tune pirates on run

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RIAA lawsuits help, but problems remain
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By BEN FRITZ
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The RIAA's lawsuits against digital pirates have led a to a decrease in the number of people illegally trading music online -- but they are pushing the most dedicated downloaders onto new peer-to-peer services that make it even harder to track them.

That's the conclusion of a study by the non-profit Pew Internet & American Life Project. Recent survey by the group found that 14% of Internet users say they previously downloaded music files but don't do so anymore, and one-third of that group, around 6 million people, attribute the decision to the RIAA's legal campaign.

In addition, 60% of non-downloaders do not plan on starting because of the threat of RIAA lawsuits.

The total percentage of people who say they've ever downloaded music increased slightly from November to March, but that percentage, 18%, is still far lower than at any time before the RIAA suits began in September (some people are probably lying about never having downloaded music, while as the number of people who go online increases, the percentage who have downloaded music would naturally decrease). The recent increase can in part be attributed to growth for iTunes and other digital music stores, which accounted for 17% of downloading activity. P2P services accounted for 31% of online downloads, while 24% was from emails or instant messages, another category that primarily represents illegal file-sharing.

While iTunes reached over 50 million downloads last month, Pew wasn't able to track any direct correlation between the effect of the lawsuits and activity in the small but growing space of digital music stores.

"Our data clearly shows that public sensitivity to these issues has been raised," said Pew research specialist Mary Madden. "But there's nothing to suggest this strategy has increased sales or will do so in the long-term."

Findings are in line with others that have noted small increases in P2P activity after a big drop when the RIAA lawsuits started. Another study by researchers at Harvard Business School and the U. of North Carolina, however, reported that there is no discernible impact of illegal file-sharing on music sales, despite RIAA claims to the contrary.

Working with Internet traffic measurement company comScore Media Metrix, Pew also found that 5 million fewer people are using Kazaa, the most popular P2P program, than a year ago. That news is tempered, however, by growth for newer P2P applications like BitTorrent and eMule that make it more difficult for copyright holders to identify users.
 

Eddie Haskell

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Nick:

I have a question. As an attorney I should probably know the answer to this but, I don't. I download music from Grogster. Still do. I have about 50 songs in My Grogster file. I see that they are being uploaded daily. Am I gonna get busted? What are the chances? What are the penalties? If I stop, will they still come after me?

Been wondering about this lately but haven't been inclined (probably don't want too) look up the answers to the foregoing.

Eddie
 

Marco

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.....this is about the same as the argument about cable theft or other piracy issues.....

.....personally I feel if it hurts anyone it would be the people on the closest end to the consumers, namely the record stores or more so the employees of such....

.....I don't really see it having an effect on the artists as much, especially the ones who are established names in the music industry......should I care if Mick Jagger misses out on a few bucks when he already one of the richest rockers out there? Maybe he'd have a little more trouble taking care of his 7 illegitimate children he's had (at last count that I know of) but my guess is they are doing just fine, financially that is.....

If piracy hurts anyone it hurts the small fish on the bottom of the food chain......maybe eventually that trickles up a bit....
 

dawgball

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Eddie,

From what I understand you would be a candidate to be tried. You are unlikely to get targeted, but if you did I think you would be prosecuted. Being a lawyer, you would have very little ground to stand on about ignorance of the law. I believe this is a defense that is being used by many of the minors who have been busted.

You should not be connected to your file sharing program at any time when you are not actively downloading files. When you are not active, exit out of the program so others can not upload from you.
 

dawgball

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To comment on what Nick said. I don't think it has anything to do with the quality of albums that are produced. The problem is that the music industry has become accustomed to being able to push everyone around. Did they think that their customers would lay down and accept forever that they charge 33% more for a CD compared to cassette tape when it cost about 2% as much to produce? At some point, an industry's greed will come back and bite them when they can not justify their charges.

The people that will be hurt by this situation the most is the artist. No, Mick Jagger, does not need to sell another $18 CD, but every other up and coming band has hardly any shot of getting a label to pour in the necessary marketing dollars when the demand is not bringing in the cash. Eventually, the market will hit an equillibrium (sp?) where both sides are happy. There are labels out there making money in this environment, so it can be done. I think the fat cat record labels are used to an unreal amount of cash flow, though, and they are scared for their future because they do not have the ability to run their business properly. The magazine, Business 2.0, did an article on this subject a few months ago about a specific small record label. I could not find the article.
 

SixFive

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read KMA's thread titled Kazaa below about peer to peer sharing for technical aspects and things to beware of.

Nick, when I use to download music back in the Napster days before all this litigation, I would download older stuff and select songs or referrals from friends. I never downloaded whole albums or songs I didn't like.

I wonder who this really does hurt the most. Artist? Manufacturer? Distributor? Retailer?
 

StevieD

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It is criminal what the recording labels consider talent. Things seem to be getting a little better lately but they tried promoting all that crap for years and it came back to bite them in the pocketbook. All you have to do is to look at the top concerts to see how backwards the industry is. Top live acts are guys like Springsteen and The Stones and The Eagles. Anyone who was signed back in the days when you actually had to have talent. New acts couldn't fill a toilet bowl by themselves nevermind the Hollywood Bowl. They travel like a circus, 37 acts all for the price of one! That's because none of those acts could carry a show by themselves. It is sickening what they did to music.
 

c note

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though I would throw my 2 cents in here....i work for the largest music distribution company in the us....so I do have some knowledge on the subject but would not say i am a expert....you will see in the upcoming months and years CD prices drop dramatically. One main reason is the big 2 music retailers (#1 wal-mart 20% market share, #2 best-buy 10% market share) are putting extreme pressure on the music lables to lower there cost price and in turn pass this along to the customer. Wal-mart has already has universal on the program.,,most new release from uni music are less than 10.00 @ WalMart...but 100% of the new cd's are less that 14.00. if you look in the flyers each weekend you will see best-buy is in the same price ranges as well. the music industry knows it needs the walmart/best-buy customer to continue to grow in sales...since walmart sells more music than any other retailer in the nation...as you all know walmart is low margin and based of the volume...the music lables are hesitant to lower there prices because they think that it will cut into profits...but by lowering the price to less than 10.00 a cd it actallually will raise there profits due to a sales increase of 50-100%. customers find no value in a cd for $14-18 when they only listen to a few songs on the cd anyways...by lowering the price though (we have done many successful test on this under $10 cd program) customers are more willing to purchase the cd...right now we have a 9.72 program where we sell some brand new releases and catelog titles from popular artist. the regualar price on these cd's ranged from $12-15. these selct titles (about 50) sell 200% more product each week at the 9.72 price then the $12-15 price. its pretty simple math....if you lower the price, to show some value the customers will buy the product..regardless of the digital downlaod and file sharing...hope this helps and i can add more to this thread if questions pop up
 
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