Music sales show a significant increase towards the end of 2003
Posted on 04/01/04 00:32 by Seán Byrne                             
Music sales show a significant increase towards the end of 2003

Despite the RIAA's claims that music sales are going to continue to drop as long as users have access free music from P2P networks, CD sales have actually shown a significant improvement in the last quarter of 2003.  While overall 2003 music sales fell 0.8% compared with 2002, sales in the last quarter of 2003 actually went up 10.5% compared with 4% in the last quarter of 2002.

 

There are several predictions on the sudden sale rise in the final quarter of last year.  It is likely that the recording industry will claim this as a success of their lawsuit campaign against users that share music online.  Another prediction is a result of strong consumer spending in the 2nd half of 2003.  Not only did CDs show a sales boost, music videos have also shown a massive sale surge in 2003 compared with 2002.  Music video sales went up 78.5% while DVD music video sales went up 104.5% in 2003 compared with 2002.  Finally, online music download services such as Apple have done very well selling a total of 19.2 million songs from June onwards in 2003. 

 

Finally while 2004 looks to be a good year for music sales, it does not look as if the music industry are going to calm down much against fighting P2P file sharing services and users that make use of them.  GristyMcFisty submitted the following news from The Register via our  news submit :

 

Despite launching a legal assault against its customer base, the recording industry appears to be benefitting from increasing music sales once again.

While 2003 music sales were flat overall, the record labels enjoyed a healthy spike in the fourth quarter, hinting that the industry doom and gloom so often suggested by the RIAA (Recording Industry Association of America) may be fading. Recent data from Nielsen SoundScan shows that an improving economy is having a positive effect on the music biz.

In 2003, total music shipments slipped but 0.8 percent when compared to 2002. Sales also fell slightly by 3.6 percent year-on-year. In the fourth quarter, however, unit shipments surged 10.5 percent compared to 2002 with sales also rising 4.3 percent.

Along with the strong quarter, the music industry saw success in various areas for the entire year. Music video sales jumped 78.5 percent in 2003, and DVD music video sales rose 104.5 percent year-on-year. Since June of this year, 19.2 million songs have also been purchased in online stores.

So where does this leave us?

The recording industry will likely point to its file trader lawsuit campaign as reason for the uptick in sales at year end. While plausible, this does not seem the most likely of explanations.

The pigopolists have been fighting all year to shut down music trading services and to punish song swappers but with fairly modest success. If file trading was really at the heart of a three year slump in sales, one might expect a far more dramatic change in the data following an entire year of legal scares.

Instead, music sales seems to be following larger economic trends. Imagine that.

U.S. economic reports released in December showed that consumer spending is strong, incomes are rising and job prospects appear far better than at the start of 2003. From July to September, the U.S. economy grew at an annual rate of 8.2 percent, according to the Commerce Department. The government also reported that personal consumption spending rose by 0.4 percent in November, as incomes rose by 0.5 percent.

It should come as no surprise to see music sales improving hand-in-hand with the lot of consumers.

A healthy 2004 will likely leave the music labels with little to complain about, but it's doubtful that an uptick in sales would be enough to call off the swine herd now. Once you've launched a full scale attack against consumers, it's hard to pull back. Even if they pay your bills.

 

The one other thing I can see as a likely sale boost is Universal's CD price drop towards the end of 2003.  Universal Music Group is the world's largest music company which means that dropping CD prices likely affects the price of a fair percentage of CDs being sold.  This may tempt some consumers that resist high CD prices to think twice before walking past a music store.  Even just a few percent more going the music stores would be enough to have this much of an effect.

Source: The Register

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By Tiikeri, Sunday 04 January 2004 02:06
Sorry to say, but your Suck-U-Now -Engine seems to be Microsoft/IE -related. Bad way to to go. So Suck yourself - so to speak. When U can upgrade your engine beyond IE, I'm ready to kick out my opinionsWink Lots of opinions, using computers since late 70's...
By Liggy, Sunday 04 January 2004 11:26
LiggyWhat are you talking about? Everything on this site works great with Mozilla for me. Only for posting news I have to use IE. But this reaction for example was written with Mozilla.
By Sherrif, Sunday 04 January 2004 14:14
Lies bigger lies and then you have statistics...there is always that group of lemmings who would buy barkers eggs if told they were trendy........cool
By Crabbyappleton, Monday 05 January 2004 05:30
CrabbyappletonTiikeri, We don't have your knowledge of computers. But, if you would mind elaborating in the bug forum we will do what we can to end your frustration. biggrin It is critical that all our members can be heard. Plus, it is nice to see someone here that may be older than me. While you were busy mastering code in the 70's, I was a rebellious teen wreaking havok in society defying authority at every turn. Raising hell and riding motorcycles at high rates of speed Smilie Frittering away my life at rock concerts and lusting after women. I finally got rid of the bikes. supergrin
[edited by Crabbyappleton on 05.01.2004 05:32]
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