Music shipments decline by 5.8 per cent in the US

MUMBAI: Music shipments of all physical formats in America to retail and other outlets declined by 5.8 per cent in the first half of the year.

At the same time a growing legal digital marketplace helped to offset the overall decline, according to data released by the Recording Industry Association of America (RIAA).

While the area of legal digital downloads showed some progress, the music industry continues to be impacted by illegal online downloading, rampant unauthourised CD burning and traditional counterfeiting of physical products. These various forms of piracy are the primary culprits for a 6.5 per cent decline in CD shipments from record companies to various distribution channels the RIAA states.

Even as the overall market declined, legal digital sales of singles grew 154 per cent in the first six months of 2005, compared to January – June of 2004. In the first half of 2005, 148.7 million digital singles were downloaded, compared to 58.6 million in the first half of 2004; 5.1 million full-length albums were downloaded from legal online music sites in 2005, compared to 1.5 million full-length albums downloaded in the first half of 2004. The total estimated retail value of digital singles and albums sold in the first half of 2005 was $198 million, compared with $73 million for the first half of 2004 (estimate derived using current prices of $0.99 and $9.99, respectively).

Despite important and effective strides by the music community to begin to slow the effects of piracy, it remains an ongoing threat to the legitimate sale of music online and in record stores. Analysis by the NPD Group reveals that burned CDs accounted for 29 per cent of music obtained by listeners in 2004. The NPD study showed that among households with Internet access that are burning CDs, 17 per cent of those are burning more than 10 CDs per month. According to Nielsen SoundScan, record store sales of the Top 200 albums, the most frequently illegally burned and downloaded, declined from 102.8 million units to 93 million units, when comparing the first half of 2005 versus the first half of 2004.

When shipments of all physical products are combined with sales of digital downloads, the total unit count for the first half of the year is 343.9 million, which represents a 2.4 per cent decline. The growth and potential of the emerging digital marketplace is also reflected in new RIAA surveys and analysis. According to a June 2005 survey by Public Opinion Strategies (POS), on behalf of the RIAA, twice as many adults (ages 18 – 54) have paid to download music as compared to a similar survey last year – 13 per cent in 2005 versus six per cent in June 2004.

Additionally, according to that same survey, the percentage of adults who have paid to download music legally is now higher than the number of adults who have downloaded music from an illegal peer-to-peer network – 13 per cent have paid to download while 12 per cent say that they have downloaded illegally from a peer-to-peer site.

RIAA chairman and CEO Mitch Bainwol said, “Even as we continue to transform ourselves and transition to the digital marketplace, the music community is still suffering enormously from the impact of various forms of music theft. One of the stories we need to repeatedly tell in the coming months is that illegal downloading and burning continue to compromise the industry’s ability to invest in the new bands of tomorrow.

“At the same time we are encouraged by the growth of the digital music marketplace. Music labels are working closely with their technology partners to offer fans an incredible, high-quality experience – from download to subscription to legal peer-to-peer sites. And by handing down the unanimous Grokster decision, the Supreme Court has done its part to help level the playing field for all legitimate players. The debate about right and wrong has been settled.”

Bainwol also said that the music companies have worked diligently over the last several years to respond to consumers’ demands by offering high-value music experiences. Fans’ passion for music, as well as the importance that it plays in their lives, is as high as ever. According to a survey conducted for the RIAA by Taylor Research, 91 per cent of adults polled said that listening to music is important in their daily lives.

In addition to an unprecedented array of digital ways to access music – download services, subscription services, nascent legal peer-to-peer services, cell phone ring tones and ring tunes, and Internet and satellite radio – music companies are working closely with retailers and others to develop exciting high-value offerings in physical formats. DualDisc, a new product that combines music, film and video on a single, two-sided disc, shipped more than seven million units in the first half of 2005, including two consecutive No. 1 albums earlier in the year.

Bainwol adds, “In a relatively short amount of time, this industry has revolutionised itself and the way it does business. We are responding to consumers, working with our partners in various technology industries, and delivering some of the best music ever to our fans.”

Latest Reads
Sunny Leone in Discovery JEET’s show Man Vs Wild

Sunny Leone will be displaying her adventurous side as host of the mega-popular survival series Man Vs. Wild. The iconic series will telecast in Hindi on the soon-to-be-launched GEC Discovery JEET. The new GEC will premiere in the second week of February 2018 and the series will feature the...

Television TV Channels GECs
Times Now appoints Sujeet Mishra as marketing head

Times Network, part of India’s media conglomerate, The Times Group today announced the appointment of Sujeet Mishra as head of marketing, Times Now.

Television TV Channels People
Experience space with BBC's new VR experience

The BBC is giving you a chance fly. Home - A VR Spacewalk is an interactive virtual reality (VR) experience launched today for the HTC Vive and the Oculus Rift, and is available to download for free via the Steam Store and the Oculus Store.

Television TV Channels Factual & Documentary
Sony BBC Earth presents the Best of 2017

Sony BBC Earth revisits some of its most popular episodes of the best shows in a special programming line-up titled Best of 2017 starting 18 December 2017, every night at 7 pm and 11 pm.

Television TV Channels Factual & Documentary
Increased revenue from traditional media boosts Shemaroo numbers

Integrated media content house Shemaroo Entertainment Limited (Shemaroo) reported 18.3 percent higher year-on-year (y-o-y) consolidated total revenue for the quarter ended 30 September 2017 (Q2 FY 2017-18, the quarter under review) stood at Rs 1,345.7 million as compared with Rs 1,138.6 million in...

Television Production House Film Production
21st CF spins-off into new live news & sports co Fox

MUMBAI: After the blockbuster acquisition of 21st Century Fox by The Walt Disney Company, the former has announced that it will spinoff into a new brand Fox’ that will seek to replicate its own success in the newly focussed verticals of live news and sports brands. Using fiscal 2017 as a base, the...

Television TV Channels News Broadcasting
With Star India, Disney emerges as India's largest M&E firm

MUMBAI: Unlike the US, where the merger of The Walt Disney Co and 21st Century Fox’s entertainment assets is between two near equals, the scenario in India is totally different. 21st Century Fox’s India venture Star India is a $1.7 billion dollar media and entertainment behemoth while Disney India...

Television TV Channels People
Disney to buy 21st Century Fox assets for $52.4 billion

The Walt Disney Co has set up a $52.4 billion, all-stock deal to acquire 20th Century Fox and other entertainment and sports assets from Rupert Murdoch’s empire.

Television TV Channels Movie Channels
MOVIES NOW brings #StopDreamingAndStartWinning with 100 Mania Season 5 for its viewers

Movies Now, India’s english movie channel, rings in the festive season with its property ‘100 Mania’, beginning Friday, 15 December at 9pm. In its 5th season, the channel has curated a line-up of some of the biggest Hollywood blockbusters like Furious 7, Jurassic World, Disney’s The Jungle Book,...

Television TV Channels English Entertainment

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories