Online piracy hurts 2002 music sales: ARIA - News - Communications

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This story was printed from ZDNet Australia.
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Online piracy hurts 2002 music sales: ARIA

By James Pearce, ZDNet Australia
January 23, 2003
URL: http://www.zdnet.com.au/news/communications/soa/Online-piracy-hurts-2002-music-sales-ARIA/0,130061791,120271487,00.htm

Australia's music industry has reiterated its determination to combat online piracy after reporting a sharp decline in recorded music sales in 2002, fuelling the intensity of a battle which has already involved a range of Internet industry players.

The Australian Record Industry Association made the claim in a statement which revealed the dollar value of the audio market - excluding music video and DVD - slumped 8.9 per cent from AU$629 million in 2001 to AU$573 million in 2002. Volume of music sold slid 4.4 per cent and average wholesale price slumped 4.5 per cent.

ARIA said, however, that online piracy was just one of the factors which contributed to the slump, with others including unsettled economic conditions, a tough retail environment, emerging competition from DVD and "continuing competition from mobile technologies and computer games".

ARIA however, said development of "legitimate" online business models were on the rise. "We are also seeing the continued development of legitimate online business models, particularly in the US, with many companies, including all the majors, now engaged in online distribution of their catalogues," it said.

The music industry recorded a 12 percent rise in music sales in 2001.

ARIA said "Recorded music sales continued to be hit adversely by online and offline piracy, a problem that is of increased concern to the local market with the emergence of 'backyard' CD-R piracy". While not specifically targeting peer-to-peer networks as eroding music sales figures, ARIA has often echoed the sentiments of its US counterpart, the Record Industry Association of America, which wages an ongoing war with peer-to-peer networks and their users.

"Though expected, and in line with worldwide trends, ARIA is disappointed by this decline," the organisation said. "The music industry, both here and internationally, remains committed to continuing its efforts against online and CD piracy".

However, in brighter news for the industry, music DVD sales more than trebled. "The DVD format is clearly proving to be a popular key carrier for music and is expected to continue to drive market growth for record companies," ARIA said.