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Music Piracy Crippling CD Sales
Centre Daily Times ^ | December 6, 2002 | Adam Smeltz

Posted on 12/10/2002 6:31:32 PM PST by new cruelty

UNIVERSITY PARK - As electronic file-swapping keeps playing its illegal jingle, the recording industry is upping complaints against universities nationwide -- possibly including Penn State.

Mike Negra, president of Mike's Video Inc. in State College, said compact-disc sales in college towns in 2002 are "probably down somewhere between 50 and 60 percent" from 1999.

"Stores such as mine, and other stores in college markets across the country, were the first to see the potential impact of file-swapping," Negra said. "Business, generally, in that group of stores in the second half of 2000, was down about 40 percent," he said.

Writing "we no longer feel that we can afford the luxury of infringements," industry executive Cary H. Sherman last week alerted Penn State President Graham Spanier to the toughened anti-piracy effort.

Sherman, president and general counsel of the Recording Industry Association of America, wrote that CD sales have dropped dramatically this year while electronic piracy has grown.

With "no relief in sight, and with the critical holiday retail season upon us, we are planning to increase the number of notices we're sending on (electronic) piracy," Sherman wrote in an e-mail to Spanier.

The communication, he noted, will go to Internet service providers and organizations responsible for online networks. The Chronicle of Higher Education reported the development earlier this week.

Several recording-related associations -- including the RIAA -- sent a letter to more than 2,300 college and universities in October and asked for help halting the illegal file exchange.

"It is costing the industry billions of dollars," said Steve MacCarthy, Penn State's vice president for university relations. "And it's a major impact on a major industry in America."

But many colleges and universities across the country also have a more practical concern: The near-constant downloading of songs, movies, games and software is overwhelming many campus networks, slowing their use in research and teaching.

MacCarthy said Penn State students know "that the university computer network is not to be used for any illegal purposes."

Though Penn State does not monitor the content of students' Internet use, it does keep track of volume, or bandwidth usage.

"There's not a big-brother role," MacCarthy said, although "we can and do flag excessive bandwidth use. Students who exceed their bandwidth allocation are warned.

"And, if they persist, their access to the university network is removed," he said.

Those violations "most often happen when they are copying audio and video files," MacCarthy added.

News of the RIAA's increased complaints, the latest effort to subdue such copyright violations, arrived as university and recording-industry officials plan to meet Tuesday.

Headed in part by Spanier, a committee will gather in Washington to find steps to stop the massive copying of copyrighted material -- while still giving university libraries the accessibility to copyrighted materials, MacCarthy said.

"Until now, we've been somewhat circumspect in the number of notices we send and to date have sent a relatively small number of (peer-to-peer network) notices compared to the large number of infringements we're finding," Sherman wrote in his e-mail.

Each month, for example, more than 2.6 billion files are downloaded illegally, according to the Web site www.musicunited.org.

"I think the hope is, by having this committee to look jointly and collaboratively, there can be agreement on both sides," MacCarthy said.


TOPICS: Business/Economy; Crime/Corruption; News/Current Events
KEYWORDS: cd; download; electronicpiracy; fileswapping; mirc; morpheus; mp3; music; napster; riaa
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1 posted on 12/10/2002 6:31:32 PM PST by new cruelty
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To: new cruelty
LOLOLOLOLOLOLOL..... Whew
They should have charged $3.99 for CD instead of charging people for 2 copies when they buy them. Thanks to YOUR gov't they allow the premise that the first thing a purchaser of a CD was going to do was make a tape copy, so they allowed the copy to be tacked on.....
For years they sold them for $15.99, payback is indeed a BIAAAATCH.
2 posted on 12/10/2002 6:37:42 PM PST by Winston Smith
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To: new cruelty
It's time for hundreds of recording artists to sign a petition against the RIAA declaring war against music pirates.
3 posted on 12/10/2002 6:38:10 PM PST by per loin
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To: new cruelty
Misleading headline. Should be that the RIAA claims that music piracy cripples CD sales. They supported this by showing a decrease in the number of CDs purchased (while failing to point out that while CD singles dropped in sales, CD albums actually increased, resulting in greater revenue overall). They also ignore the fact that CD sales did not drop until after the death of Napster, and they try to imply that the drop in CD sales must be a result of music piracy and that it could not at all be related to the downturn of the overall US economy.

All in all, it's just an excuse for them to use when paying off Congress to pass new restrictive copyright legislation that totally destroys the concept of fair use.
4 posted on 12/10/2002 6:38:47 PM PST by Dimensio
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To: new cruelty
Note to the RIAA:

Technology has rendered you obsolete.

You are in the business of manufacturing buggy whips.

Find another line of work.

5 posted on 12/10/2002 6:40:11 PM PST by wideawake
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To: new cruelty
Market forces at work. If the recording industry decreases the price of CD's and movie admissions, then they cut the incentive to download.

Remember, the Beatles don't own their own catalogue of songs--Michael Jackson does. So when consumers buy the Beatles Greatest Hits, they're putting money in Jackson's pockets, not giving it to Paul, Ringo, and the estates of George and John.

6 posted on 12/10/2002 6:42:13 PM PST by Ciexyz
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To: Winston Smith
I have as much sympathy for the RAII and it's so called industry as you do. Their intrusive, totalitarian solutions have turned me against them.
7 posted on 12/10/2002 6:42:59 PM PST by dennisw
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To: Dimensio
They also ignore the fact that CD sales did not drop until after the death of Napster, and they try to imply that the drop in CD sales must be a result of music piracy and that it could not at all be related to the downturn of the overall US economy.

Maybe it's a result of people's being fed up with music-industry actions against Napster et al., or with people who are unwilling to buy music without listening to it first.

Some interesting articles on www.janisian.com [linked here previously]

8 posted on 12/10/2002 6:43:21 PM PST by supercat
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To: new cruelty
My college is attempting to keep bandwith reasonable.......which is being overloaded with file-swapping activity. Luckily, they only are instituting a download speed limiter for certain programs such as Kazaa instead of not allowing any downloads whatsoever.

Considering this college is a conservative Christian school, they are being rather lax, even when sending out e-mails quoting the Ten Commandments and all.

Personally, I confess to downloading a ton of songs and I don't feel the slightest bit of guilt......

It is quite easy for the companies to deal with this problem. Allow people to simply download songs on their websites.......every song their artists sing....individually, say $1 per song, $2 at the most (any more than that is a rip-off). That would be reasonable. Of course, for that price, I would expect fast downloads.




9 posted on 12/10/2002 6:44:50 PM PST by rwfromkansas
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To: wideawake
Agreed, wideawake.

The RIAA has isolated itself from the comsumer rather than finding a new means of delivering a product.

However, I don't see them becoming more lax any time soon.
10 posted on 12/10/2002 6:45:29 PM PST by new cruelty
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To: Ciexyz
$17.99 per CD is just too high. Add on taxes and it's three times the hourly minimum wage.
11 posted on 12/10/2002 6:46:23 PM PST by Ciexyz
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To: new cruelty
"Stores such as mine, and other stores in college markets across the country, were the first to see the potential impact of file-swapping," Negra said. "Business, generally, in that group of stores in the second half of 2000, was down about 40 percent," he said.

I don't doubt that file sharing programs like the now-defunct Napster and Kazaa are hurting these stores sales, but notice what group of stores this is: the college stores. Now, I know at my school, the store of this type here at UB has a much higher markup than Amazon.com, so many of my CD's from Amazon.com.

So, basically, the guys squawking here would be in trouble anyway, since any reasonably savvy consumer could find a cheaper (legal) source of music.

12 posted on 12/10/2002 6:47:48 PM PST by jude24
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To: Winston Smith
What turned the corner for me was not file-swapping - the quality of most MP3s are terrible - but CD burners. When I discovered how easy and cheap it was to burn my own CDs, my CD purchasing decreased dramatically. I mean, it's hard to justify paying $13.98 and upward for a CD when you can get a stack of 100 blank CDs for almost the same amount. It really makes the consumer realize just how much he was getting ripped off all these years.

I still buy a CD from time to time, but I am much more selective. It has to be a damn good CD for me to spend the money. (I do sample CDs online before buying).

I have enough CDs from previous years (nearly 1,000) to keep me making my own compilations for years to come. Another thing I have done recently is record CDs right off the radio. So when there is special programming that appeals to me - such as a Wagner opera or a Led Zeppelin profile on some oldies station, I stream the audio right onto CD. A blank CD is now done to about 20 cents for 80 minutes of music. What a bargain. This is even 10 times cheaper than cassette tapes!

13 posted on 12/10/2002 6:54:04 PM PST by SamAdams76
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To: new cruelty
The RIAA never considers the possibility that sales may be down because consumers are completely burned out on the cookie-cutter teen pop, hip-hop, hat act faux-country and rap crap they have been foisting on the public for years, every disc virtually indistinguishable from all the others.

I am a record collector and used to buy a ton of CDs, but lately, the only things I've bought on CD have been independent releases and some reissues like Louie Armstrong and Ella Fitzgerald. Mostly, I've been buying old vinyl and extending my already immense LP collection. You can get them cheaper, and there's actually music on them worth listening to.

14 posted on 12/10/2002 6:54:56 PM PST by HHFi
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To: rwfromkansas
'Personally, I confess to downloading a ton of songs and I don't feel the slightest bit of guilt...... '

Nor do I, rwfromkansas. Nor do I.

They can have my mp3s when they pry my keyboard from my cold dead hands. : )
15 posted on 12/10/2002 6:55:22 PM PST by new cruelty
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To: new cruelty
Interesting note. Overall, CD sales are down considerably (blame it on piracy, crappy music, whatever).

But, CD sales of Contemporary Christian Music is up 13% over the past year. Hmmm....

16 posted on 12/10/2002 6:55:26 PM PST by Spiff
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Comment #17 Removed by Moderator

To: new cruelty
Maybe the decline in CD sales is directly related to the abysmal quality of new music these days.
18 posted on 12/10/2002 6:58:01 PM PST by Alberta's Child
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To: Ciexyz
In an article published a couple of months ago in PC MAG (which unfortunately I'm unable to locate on the net) John Dvorak argued that if the record industry followed the path which had been followed 100 years ago when sound recordings became available, CD's would cost today about $1.40, accounting for inflation, increased costs, etc. But then, the paradigm would have to be shifted and the teenage madonnas would not be flying their private jets and their record companies would not be swallowing up movie studios.

Buck forty I'll pay!

(By the way, at my local record store I pay not much more than that for brand new CD's by out of favour, or new artists, CD's which had been sold (dumped) to the store by newspaper reviewers, DJ's and distributors.)

19 posted on 12/10/2002 7:00:52 PM PST by Revolting cat!
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To: new cruelty

20 posted on 12/10/2002 7:01:18 PM PST by LibKill
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