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CD sales down 7%, RIAA blames internet

OUT-LAW News, 27/08/2002

US CD shipments dropped 7% in the first six months of this year, according to new figures from a study announced by the Recording Industry Association of America (RIAA) which is blaming on-line music piracy for the decline in sales.

The study, commissioned by the RIAA and carried out by Hart Research, also found that pirate optical disc seizures increased by 69.9%.

Based on a May 2002 survey of 860 internet-connected music consumers aged 12 to 54, the study claims that, by a more than a two-to-one margin, consumers who say they are now downloading more also say they purchase less.

Also, 63% of the sample said that they have acquired at least one burned CD in the past year, and 35% of young consumers said the first thing they do after hearing a song they like by an unfamiliar artist is download the song for free from a file sharing service. The number of burned CDs acquired by internet users has doubled from a year ago.

The RIAA yesterday said in a statement: “Among people who said their downloading from file-sharing services had increased over the past six months, 41% reported purchasing less music now than six months ago.”

In the same statement the RIAA claimed that its anti-piracy efforts “remain a success on many fronts”, and that its anti-piracy units increased the number of search warrants executed by over 96% in the first half of 2002.

Geoff Garin, chief executive director of Hart Research told news agency Reuters: “I would not argue that downloading and copying are the only factors at work. But we have clear evidence that [they] do not have a favourable effect on record sales.”

The study contrasts with a recent survey by Forrester Research, which found that on-line piracy was not to blame for the decline in music sales. Factors such as a lack of current popular artists and the general state of the economy have also been blamed.

 

 

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