Wednesday, April 16, 2003
This article does more than imply that the major labels had already decided and acted to trim back on "product" before testifying before Congress that sales were plummeting due to file sharing.
(Teaser extracts from The Music Piracy Myth)
"So think about this. As the original research I conducted indicates (and has been verified by SoundScan via BusinessWeek.com), the record labels began to reduce the number of releases BEFORE the Napster hearings. When they went in front of Congress to complain about downloading, Hilary Rosen could confidently state that sales were going to suffer.
"Because it was engineered.
"Here's another interesting point. I can go to www.discmakers.com and order CDs for $1.89 each. Not "replicated" but created from a glass master. As I understand it, the current wholesale price for a CD is about $12.
"So how can EMI's Cost of Goods Sold (2001 -- at Hoovers Online) be 71% of their income? BMG's 2001 annual report blames industry shortcomings "long obscured by market success" and Vivendi told its stockholders that an "anticipated lighter release schedule" had something to do with it. BMG is the only one that even mentions file sharing -- as a justification in investing in Napster.
Why does "sales are down 10%" overrule any other explanation for declining sales? A bigger question is -- Why won't anyone in the media even discuss this?"
¶ 4/16/2003 08:49:00 AM
(Teaser extracts from The Music Piracy Myth)
"So think about this. As the original research I conducted indicates (and has been verified by SoundScan via BusinessWeek.com), the record labels began to reduce the number of releases BEFORE the Napster hearings. When they went in front of Congress to complain about downloading, Hilary Rosen could confidently state that sales were going to suffer.
"Because it was engineered.
"Here's another interesting point. I can go to www.discmakers.com and order CDs for $1.89 each. Not "replicated" but created from a glass master. As I understand it, the current wholesale price for a CD is about $12.
"So how can EMI's Cost of Goods Sold (2001 -- at Hoovers Online) be 71% of their income? BMG's 2001 annual report blames industry shortcomings "long obscured by market success" and Vivendi told its stockholders that an "anticipated lighter release schedule" had something to do with it. BMG is the only one that even mentions file sharing -- as a justification in investing in Napster.
Why does "sales are down 10%" overrule any other explanation for declining sales? A bigger question is -- Why won't anyone in the media even discuss this?"
¶ 4/16/2003 08:49:00 AM
