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Global music sales fell again in 2005

Written by James Delahunty (Google+) @ 23 Jan 2006 8:23 User comments (20)

Global music sales fell again in 2005 According to the International Federation of the Phonographic Industry (IFPI), global music sales fell again in 2005 despite a huge rise in online music download sales. Chairman of the IFPI, John Kennedy said that global music sales fell by 2% after remaining flat in 2004 amid a four year slide. According to a separate report by the IFPI, there was a threefold increase in digital music revenue, while illegal file-sharing volumes changed little.
The look now has to go beyond piracy for the obvious possible goods and services that are taking a bite out of music sales. "Piracy in all its forms has been the major factor in this reversal but not the only factor." EMI chairman Eric Nicoli said. He cited increasing competition from other categories of consumer goods. "Twenty years ago there were no mobile phones, no DVDs, no computer games to speak of." he said.

"In categories that did exist, like magazines, cosmetics and designer clothes, we've seen a massive explosion of choice and accessibility to consumers. So no surprise, then, that music sales have come under pressure." he added. To attempt to increase revenues, some record labels have been pressuring Apple to allow variable pricing on tracks offered by the iTunes music store. Apple so far has insisted that a blanket price per track is the best way to go and is unwiling to change its stance.

Source:
BBC News

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20 user comments

123.1.2006 8:40

when are the music corporations ever going to realize they're trying to market an inferior product (being crappy music) for too much money? there's not much left for them to blame but themselves.

223.1.2006 14:08

Music is too expensive and I have bills to pay. Some CDs are crap and not worth buying.

323.1.2006 15:54

Auslander has it right. The music sucks big time!

423.1.2006 18:13
MrToast
Inactive

Id be willing to bet that most of the music downloaded isnt used. I mean, most of the time when I get an album I only keep the songs I like and delete the rest. I agree, music is way overpriced! Even at 12.99 it is too much, although I do like Itunes .99 and buy the songs I really like but that aint many. Entertainment in general is kind of in the crapper...

523.1.2006 19:37

I also agree, the music people and everything that assoiciates with them have gotten way to greedy, and please, I am so tired of hearing this piracy crap is hurting them, they admit themselves that they lose between 2 to 5% in sales, so in other words instead of the big shots making 3 mill anually they will only get about 2.8 mill, oh boo hoo I feel so sorry for them, how about putting out some decent material and charge fair prices.

623.1.2006 19:47

F$@&#! the music people and their associates.

723.1.2006 21:33

So why we have to buy 18 for 1-2 good song? (audio-cd) - We do not! Thanks for internet....

824.1.2006 1:58

Yeah don't you just love it how they admit to the piracy only taking 2-5% of sales, but yet that's the first thing they seem to blame everytime?

924.1.2006 6:22
riplord
Inactive

The record companies are whining because they see the future, and it doesn't agree with their pcketbooks.

1024.1.2006 8:43

anybody know what the latest beakdown is on were the money goes..... or better yet how much it takes to get the cd from the singers mouth to our hand....I'd like to see the latest breakdown. LD

1124.1.2006 17:10
berger103
Inactive

Maybe if the music corporations would just make a CD cost $5.99 or something like that..then maybe I would consider buying..but why on earth would I want to put more money in those greedy A##holes pockets??

1224.1.2006 20:26

HOLY CRAP...CD sales fell 2%. The end of the world is near. Actually, who the hell cares? If computer sales fell 2% you would never hear about it. If washing machine sales fell 2% you would never hear about it. The only reason this is even a story is because of the RIAA cries and cries about piracy. Yea piracy is having a huge effect...a whopping 2% effect. Instead of having sold 100,000,000 CD's they only sold 98,000,000. Boo fricken hoo. Maybe if there was good music to buy CD sales would rise 2%. Wow, I think i'm a genuis for coming up with that idea.

1324.1.2006 20:34

@Jasper44 Good point, I never hear about washing machine piracy and pirated refrigerators. Companies like Maytag and Kenmore probably lose money too due to piracy. I never hear them complain.

1424.1.2006 20:42

Another thing about the stupid music industry and their music downloads are the rules. I've never actually downloaded a song of itunes so I don't know the exact rules or whatever, but being restricted to how many times you can burn that song onto a CD and what not is stupid. When you buy a Mustang, does Ford tell you that you can only drive your car 6 times, or only between 3&4p.m.? H*LL NO!

1524.1.2006 20:50

F*** Itunes. I joined Itunes to take advantage of the free songs from the Pepsi promotion last spring. I never purchased any songs because I don't like the DRM and I didn't have a burner last spring.

1624.1.2006 21:40

New Albums ....... 15+ New Games ........ 40+ PAYG Mobile ...... 20+ (per month) which do your kids want most? It's not the music. Lets face it, the generation that grew up buying the latest albums and buying magazines like 'smash hits'have all grow up and have kids of their own. ...and they just dont buy music like their parents did. Why?.....because they have better things to spend their money on. Music today sux. We just dont have the same quality of output from the music industry that we have enjoyed in the past. The music industry needs to get a grip. The consumers are different because the products that are targeted at them are different. They are spending more money than ever before. But they are not buying music.

1725.1.2006 14:37

MR TAZ, you hit that right on the head. That is the way we are today. The music industry cant live with todays life and would sue everyone everyday if they could.

1827.1.2006 3:34

They like to blame the p2p's but here is a thought for them. I have been buying cds for many years and have accumulated about 600 by now. I cannot tell you how many of those were purchased for 1 song until I started holding out for greatest hits cds. Now instead of buying a whole cd for just 1 song; I can just buy the song I want. That is way cheaper for me. Don't you think that would drop their sales?

1931.1.2006 11:18

I hope they go broke Edward R. Murrow: We cannot defend freedom abroad by deserting it at home. Benjamin Franklin: Those who would give up an essential liberty for temporary security, deserve neither liberty or security www.impeachpac.org

2021.4.2006 10:15
hans471
Inactive

At one time the entertainment industry took Sony to the Supreme Court over their VCR, said it was killing movie sales due to piracy. At the time movies sold for about $100 per tape. Who would buy them at that price? Now movies can be had for less than $20 each and the studios make more off DVD sales then they do from theaters. Ummmm, lesson....if it costs too much people will not buy. If the price is right you sell them by the millions and make hugh profits. Music CD's cost way to much. I thought of buying the sound track from a recent movie. It was more for the music CD than it was to buy the entire movie on DVD. How dumb can these fools be? Movie sales are down because the quality is low and the price is much too high. Its time to let the current music companys go broke (just like Ford and GM are doing) and let some new folks in the market that understand how to run this. 1) Sell your music on the internet at a reasonable price a song at a time. The money will flow in. You will reduce your overhead and increase your cash flow. 2) Market some quality stuff that people actually want. Again, look at Ford and GM...they built the cars they wanted to instead of what consumers wanted. People didn't quit buying cars, they just went to other companies that had the cars that they wanted. 3) Quit blaming everyone else. Look in the mirror! The entertainment industry is run by a bunch of old guys who don't like change. They have money to throw around and they are going after consumers. This will get them nowhere. They need to face the facts and change with the times. Time changes all and these folks are going to be left behind more and more if they don't get with the program. I have not bought a new CD in more years than I can remember. I got tired of paying $16 for one or two good songs. I can live without their junk.

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