Member Since: 11/27/2010
Posts: 9,806
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Less Money, Mo' Music & lots of Problems
LESS MONEY, MO' MUSIC & LOTS OF PROBLEMS: A LOOK AT THE MUSIC BIZ
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By 2010, the total number of tracks (including album track equivalents) sold in the United States each year had fallen by 57% (to roughly 4.6B). Though it’s convenient to blame piracy, NPD estimates that fewer than 340M tracks were pirated in the United States in 2010 (~17M pirates downloading an average of 20 tracks each).
Even if every one of these illegal downloads represented a cannibalized sale, the industry would still be down more than 50%. The same is true if the number of pirated tracks were somehow twice as many as NPD had estimated. With fewer than 1.5M Americans subscribed to music streaming services in 2010, this explanation also falls short.
The end of the album didn’t just bring about the end of unearned revenues, it revealed that the underlying demand for “owned” music was much lower than most believed. Recognizing this fact is critical. If the music industry hopes to increase sales and better support its artists, revenues will need to be generated outside of conventional unit sales.
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