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Report: Illegal Music Downloading Climbs

Posted By Barry Ritholtz On January 16, 2004 @ 6:07 pm In Finance,Music | Comments Disabled

AP reports:

The number of U.S. households illegally downloading music from P2P networks is increasing, not decreasing, as the RIAA would have us believe (see “BitTorrent users chuckling over Pew peer-to-peer report [1]“). According to new research from the NPD Group, the number of households availing themselves of peer-to-peer traded MP3 files rose 6 percent in October and 7 percent in November after a six-month decline.

So is the RIAA’s campaign against file-sharing perhaps less effective than the lobbying group claims? Nonsense. RIAA spokesman Jonathan Lamy says the group’s efforts are on right track, regardless of what the NPD study shows. “For us, the ultimate measurement of success has been, and continues to be, creating an environment where legal online music services can flourish,” Lamy said in a statement. “All indicators point in the right direction — sales of CDs, legal downloads and awareness that file sharing copyrighted music is illegal — have all increased.”

Note that Lamy avoids the question: “Is file sharing decreasing?” Legal downloads are increasing because there is now legal downloading services. Previously, people who wanted digital music had no other option but the P2P sites. Apple iTunes Music Store [2] opened the flood gates.

As to sales of CDs increasing, that’s as much a function of the improving economy [3] as it is long awaited price competition [4].

via: Good Morning Silicon Valley [5]

Sources:
Report: Illegal Music Downloading Climbs [6]
ALEX VEIGA
Associated Press, Thu, Jan. 15, 2004

http://www.siliconvalley.com/mld/siliconvalley/7720607.htm

RIAA: The facts aside, we’re winning [5]
John Paczkowski
GMSV, Fri, Jan. 16, 2004

http://www.siliconvalley.com/mld/siliconvalley/business/columnists/gmsv/

Music Sales Rise on Aggressive Discounting, Price Competition and an Improving Economy [4]
Me
December 21, 2003

http://bigpicture.typepad.com/comments/2003/12/music_sales_ris.html


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2004/01/report-illegal-music-downloading-climbs/

URLs in this post:

[1] BitTorrent users chuckling over Pew peer-to-peer report: http://www.siliconvalley.com/mld/siliconvalley/business/columnists/gmsv/7637880.htm

[2] Apple iTunes Music Store: http://www.apple.com/itunes/store/

[3] improving economy: http://bigpicture.typepad.com/comments/2003/11/us_music_sales_.html

[4] price competition: http://bigpicture.typepad.com/comments/2003/12/music_sales_ris.html

[5] Good Morning Silicon Valley: http://www.siliconvalley.com/mld/siliconvalley/business/columnists/gmsv/7727818.htm

[6] Report: Illegal Music Downloading Climbs: http://www.siliconvalley.com/mld/siliconvalley/7720607.htm

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