The music market is not down due to P2P

“The music market is down not due to P2P “piracy,” but for four simple reasons: a) stiff competition for the entertainment dollar with formats like video games and movies, both have much larger marketing spends; b) the replacement cycle is over-digital music does not scratch or wear out like past formats; c) one now has the ability to purchase and listen only to the great songs without filler; and d) mass-merchant retailers today carry only the current hits, with little to no catalog.”

Terry McBride, more here. (via Taylor and Anthony)

This entry was posted by Eric on Tuesday, February 24th, 2009 at 10:32 am. It is filed under Uncategorized and has these tags: , , , . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

  • sounds reasonable but very simple! interesting!
  • yiah
    I dont think these are something really new, the realization of the situation from the baby boomers is something new.

    For a) have a look at these graphs

    b) Through out the 80s and 90s the replacement, re issues of old albums to the new format was a cash cow for the recording business

    c) Actually singles was the main format of the last century. The rock n roll era was built upon singles, Later came -some- artists that could make a -full- album. Now we go back to that situation again that the song is the main product, Here an article on how the record labels killed the cd singles


    d) This is a vicious circle. The big retail chains are using their space the best way possible. This means if cds dont sell enough I will put in their place something that sells eg DVDs, Videogames, game consoles. Now again, because the space of the cds is reduced caught less attention and less sales. And dont forget in the physical world you stock the 20 out of 100 cds that make the 80% of the revenue.

    We are still thinking in our analog way but the thing is that the new digital generation will not stop their digital lifestyle trying to understand our analog questions.

    edit How To Kill The Music Industry
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