fact-checking the record industry
Bruce Baugh cites a detailed examination of the marketing data figures the RIAA released to back up its claim that music swapping was killing the industry. Baugh comments:
The upshot of it is that profit per release is up. The number of new releases has been cut drastically, by a quarter or so--after the closure of Napster, as Reimann points out. But the remaining releases are each earning a lot more. The overall decline is in the realm of 6% over the last couple of years, which is by no means unusual in the midst of a recession. Ziemann claims, and I think these figures bear him out, that if the number of releases had not been slashed so far, the music industry would be enjoying net growth in revenue.
In short: they are lying lying lying about the impact of piracy. What's hurting the music industry is apparently bad managerial response to the basic fact of recession, cutting production more than was warranted and without doing things like reforming accounting practices, refraining from sales hikes, and not alienating customers with poorly conceived and presented anti-piracy schemes.
Imagine my surprise.
(via Avedon Carol)