Online piracy hurts 2002 music sales: ARIA

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.

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Talkback 12 comments

    Sales are down so lets blame p ...Var Jina -- 24/01/03

    Sales are down so lets blame piracy again huh?

    Why not look at something else , such as the fact we are spoon fed more and more totally annoying and mindless crap music as time goes and we are sick to death of it - and refuse to buy the substanceless garbage.

    If any other industry makes a product that no one wants and rejects sharply , these industries take a look at their products and do market research - but not the recording industry NOOOOOO!

    It's as if all common sense has escaped them , and the lightly baked product being ignored and not selling well can't possibly be the reason for low or no sales - it couldn't possibly be that they'd "imply" its piracy to further their own agenda.......could it?

    I think ARIA is just lifting t ...Bill Hatossy -- 24/01/03

    I think ARIA is just lifting the tired old line from RIAA from the States. If the music was actually any good maybe I would buy it. As for taking the time to pirate it what planet are these idiots on? The music is rubbish so why go to the trouble of ripping it? Where are the figures?

    I wouldn't mind buying more of the good back titles but the prices asked for today are unbelievable. Most of the artists I like are dead and the original recordings were made like 40 of fifty years ago, but the prices are almost $40 per CD. And they wonder why I don't buy?

    Provide a product we like and want at the right price ARIA and we may just buy it!

    Produce something decent and t ...MrDamage -- 24/01/03

    Produce something decent and then I might buy.

    But seeing as the majority of it being released is basically a soft-porn film clip to duff duff music, I'll just go along and keep listening to my cd's of Van Halen, Sabbath, ACDC, Audioslave etc.

    So get the hint ARIA, stop producing 3000 artists who sound the same, and give us some real choice...

    Hmmm, CD sales are down by 8.9 ...Anonymous -- 24/01/03

    Hmmm, CD sales are down by 8.9%, but DVD music sales are up by 200%!!! Is it not possible that less people are buying CD's and more are buying DVDs? Nah, it must be those damned pirates, Aarrrgh!

    Ahoy there Matey! It's me the ...Anonymous -- 24/01/03

    Ahoy there Matey! It's me the Pirate of the 7 CeeDees, Jolly Roger!

    Arrr me mateys, don't blameth us Pirates for commercial robery! Who doesth music belongeth too anyway?

    A lot of these arguments are b ...jeff bartolomei -- 24/01/03

    A lot of these arguments are based on the idea that music is too expensive, if they priced it right music companies would sell more, as if this is the economic principle governing piracy. We forget that we're not talking about the decision "to buy or not to buy" but rather "to buy or steal"...No matter what price you pitch music at, "to buy or to steal" usually comes out at "to steal".
    People complaining about the price of CDs should try composing their own and stop whining.

    Jeff , some people will not pu ...Potsy Webber -- 24/01/03

    Jeff , some people will not purchase music no matter what the price of music is; but I would hardly call them a majority.

    As has been said many times and I will say it again...it's not stealing , as you are not without your music if someone copies it - IT'S COPYING IT!

    You are not left without a product to sell due to someone taking it and keeping it; you are very much still in possession of your product as it was replicated. That said , the fact remains that people are not paying for something which they now have in their possession and the result is going to be similiar to what we could expect if Ford or Holden didn't sell cars due to people being able to replicate them - loss of sales.

    Your price vs people who pirate is true of course , but not for most of us. I bought a cd yesterday , and I can tell you right now I would not have bought it if I couldn't play it with my pc or rip the tracks from it; and make mp3's with it too. The music industry has acted illegally and immorally for so long , and it's kind of rich that they expect people to behave morally and with a clear conscience while they are not willing or interested in looking after anyone but themselves - and increasing profits at the cost of good music.

    Music on radio most times is so bad these days I use it to wake me up instead of the buzzer alarm on my alarm clock - and thats the honest to Gods truth.

    The recording industry is tryi ...Anonymous -- 24/01/03

    The recording industry is trying to sell the wrong thing. They show the music videos on TV - for free - then expect us to pay for the soundtrack only version.

    When you buy a CD, you are paying for the artist to record the music. You are also paying the production costs of the music video(s) used to promote the CD. But you don't get a copy of the videos.

    In short they spend extra money creating a form of entertainment which they, in most cases, don't even attempt to sell. Talk about wasting money.

    Now if they stopped allowing their music videos to be shown on TV (except small snippets used in ads), released every CD on DVD, and pushed the DVD as much as they do the CD then maybe they might see a few extra sales for very little extra cost.

    I was in a music store (a majo ...Anonymous -- 25/01/03

    I was in a music store (a major national chain) in a suburb in Adelaide and saw....Pack of 10 blank CD-R's + bonus CD-R's for sale!!.

    How can ARIA claim that Online piracy hurts music sales when they are themselves - through music shops selling CD-R's, promotting the download of music from the internet.

    Hence, they themselves are to blame. Not the public.

    If they want to encourage people to buy CD's, perhaps music should stop selling CD's and promote people to buy the real CD's from the stores.

    I am finding more and more whe ...Anonymous -- 26/01/03

    I am finding more and more when I go into a record store I am buying old CD's from 1992 and earlier their is nothing new to buy in the shops.

    When I ask salespeople what new CD's they have they name a few titles and that's not even 5. I joke with them name me 5 new titles and they struggle to even do that. I asked them why is their so few new CD's and they respond the Australian music industry is flat at the moment.

    Maybe that's why ARIA are loosing sales. Their industry is flat and I wonder why that is? I don't think it's the piracy.

    An alternative to DRM: http:// ...Anonymous -- 27/01/03

    An alternative to DRM:
    http://www.pico-pay.com/musicpaper.html
    link

    An alternative to Pico-Pay: ht ...Anonymous -- 18/03/04

    An alternative to Pico-Pay: http://www.millipay.com/

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