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Editorial: RIAA Complains of Falling Record Sales
Posted by: Jas Batra on Tuesday, August 27, 2002 - 05:34 AM PST
Corporate News Newbury Park, CA - The Recording Industry Association of America issued a study by Peter D. Hart Research Associates showing that those who download music are less likely to purchase albums, contrary to what has happened in the past...

The RIAA, the machine that is growing and attacking any form of media not distributed in a retail store with a price tag, has now issued this study. But, other studies, issued by reputable firms such as Jupiter Communications, Stanford University, and a handful of others, show just the opposite.


In fact, 5 of the largest publishers had to settle with the FTC in 1999 due to an accusation of artificially inflating prices. The recent study shows that shipments fell 7 percent for the first six months. If the RIAA was aware of the economy, they would understand that almost every industry has been hit by a slump after the September 11th incident. If sales were ONLY down 7%, the industry should be happy. There are a number of industries that were hit harder.


Prior to September 11, the sales of CDs were steadily increasing, despite the massive online music trading. Many users of online music trading services stated that they would almost always buy the album. Reciprocal Inc. released a study in 2000 showing that, overall, retail sales between 1997 and 2000 increased.


We have seen that the RIAA, like jackals, will attack anything where they aren't making a buck at that instant. An analogy was made to the massive take on the water-bottle fad, why pay for something you can get for free? The same mentality applies to some online MP3 traders, when the large publishers offer their own trading service, with a monthly fee. The reason we pay for the water bottle is that it is convenient. If the music publishers can come up with a convenience, then the free trading services will not stand much of a chance.


One more thing should be noted, only the sales were down 7%. Keep in mind that concerts, events, promotionals, and similar items are major money makers, and hot sellers. The 7% lost through retail sales would easily be recovered through these other channels, and this year, more people have been attending, resulting in increased revenue for the companies.


So, what does the RIAA want? Money. What will they do to get it? Anything. As one ISP started last week, and others will join in soon, the only way to stop the growing RIAA monster is to not let it go where it isn't wanted.


  
 
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