Posts filed under “Music”

35% of All CDs are Illegal Copies

Despite the industry’s stalking horse obsession with P2P — the technology they both fear and fail to understand — the bigger more dangerous issue facing the major labels continues to be counterfeiting.

By their own overblown admission, the labels (via mouthpiece The International Federation of the Phonographic Industry), is making the astounding claim that one out of every three CDs sold is a counterfeit.

This mind-boggling statistic, though likely exaggerated, demonstrates what a foolhearty distraction the RIAA litigation campaign against their consumers has been. If one third of your production is essentially stolen property, than as an industry you doing something very, very wrong. Indeed, these numbers are an admission of utterly incompetant corporate mismanagement and misfocused businesses plans.

In the real world, this sort of malfeasance invariably results in management shakeups and corporate reorganizations, with the irresponsible parties given the sack.

I do not believe the industry fully comprehends the underlying problems its facing — or if they have the backbone to confront them.

Here’s an excerpt from Digital-Lifestyles:

“The International Federation of the Phonographic Industry has published a report claiming that 35% of all CDs sold around the world are illegal copies – that’s 1.1 billion pirate disks. The report also includes a list of countries recommended for government action: Brazil, China, Mexico, Pakistan, Paraguay, Russia, Spain, Taiwan, Thailand and Ukraine.

Sales of illegal discs rose 4% in 2004, though the year saw the slowest increase since 2000, an indication that increased anti-piracy activity is having a positive effect.

Clearly the biggest threat to the record industry today is not P2P networks but the more traditional CD copying seen in the the IFPI’s ten priority countries where anti-piracy offensives are most needed.

The report contains a four point “Call to Governments” asking for strong and updated copyright laws, sentences to deter pirates, the regulation of disc manufacturing and a commitment to prosecute copyright infringers aggressively.

IFPI Chairman and CEO Jay Berman said: “Commercial music piracy dominates large swathes of the world’s music markets, despite an encouraging slowdown in growth in 2003. This illegal trade is funding organised crime, fuelling widespread corruption and costing governments hundreds of millions of dollars in lost taxes. It is destroying artist careers and music cultures, and robbing countries with high piracy rates of billions of dollars of investment they would otherwise enjoy.

“The responsibility now is for governments – and especially on the 10 priority countries our report names – to act decisively against the problem. This means proper enforcement, deterrent sentences against pirates, effective regulation of disc manufacturing and, above all, the political will to make sure real change happens.”

disc_piracy
Graphic courtesy of IFPI

The full report is here: http://www.ifpi.org/site-content/library/piracy2004.pdf

Source:
IFPI: 35% of All CDs Sold Worldwide are Illegal Copies
Fraser Lovatt
Digital-Lifestyles
23 July 04

http://digital-lifestyles.info/display_page.asp?section=distribution&id=1423

The Recording Industry Commercial Piracy Report 2004

http://www.ifpi.org/site-content/library/piracy2004.pdf

Category: Finance, Music

Radio’s Wounded Business Model

Listen to music on the radio much lately? If you answered “no,” you’re in good company. Americans are listening to broadcasts — especially of music — much less frequently then they used to. And with good reason, too: Stations which were once a way to discover new music have become bland sources of uniform playlists….Read More

Category: Finance, Media, Music

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Category: Music

CD installs virus/spyware

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iTunes Rocks Europe

Category: Music

Music Industry Spinning DRM Tales

Brace yourself for a DRM lie of biblical proportions:

Velvet Revolver, a supergroup formed from members of the bands Stone Temple Pilots and Guns N’ Roses, released Contraband, their first CD. It shot straight to no. 1 on the charts, selling 256,000 copies in the U.S.,  according to Nielsen SoundScan.

Expect the Music Industry/RIAA flacks to start spinning dross into gold, claiming the reason for the CD’s success was the DRM from Suncomm Technologies (remember them?). This is the company’s 12th copyprotected CD, and Bertelsmann Music Group’s fourteenth CD to feature the customer-unfriendly measure.

Not surprisingly, none of the prior CDs were breakout smash hits, or even decent big sellers; Certainly, none opened at no. 1 with a bullet.

In fact, there have not many CDs of recent years reaching anywhere near the success of Velvet Revolver (I guess Norah Jones or Eminem were the most similar in initial disc sales).

That’s not at all surprising:  Contraband has been one of the most awaitied and heavily promoted albums of the year. Take the alumni of Stone Temple Pilots and Guns N’ Roses — two monster bands in and of themselves, neither of which have released a CD of new material in a long time — and you have a pre-made audience, loaded with pent up demand for any new product from the group. 

Of course, the CD’s success had nothing whatsoever to do with the copy protection. It was the music and the band’s built in fan base which should get the credit.

You may recall Suncomm Technologies as a DRM laughingstock: In 2003, a Princeton University graduate student revealed that the company’s vaunted digital rights management system could be defeated by simply holding down the shift key when loading a music CD (see "Revolutionary copy protection technology features no copy protection whatsoever").

Indeed, many Amazon reviewers (see a round up of Amazon comments here) have noted that the DRM can be easily defeated.

It took me all of 5 minutes to track down this info on Amazon. Is it lazy reporting, or simply effective spin? The entertainment media’s coverage of the ironically named disc overemphasizes the import of DRM to Contraband’s success. Consider C/Net ("Copy-blocked CD tops U.S. charts") the Register ("Lock-down CD scores No.1 hit"), and even the usually snarky and skeptical Good Morning Silicon Valley implied the CD scored big in part due to the DRM (Suits at Suncomm are a bit redeemed today . . .").

The Contraband CD comes with MediaMax copy protection (ala SunComm). It prevents Windows PCs owners from exercising their coyright fair usage of their purchase, converting their CDs to MP3s foir use with poperable palyers. The dics does include DRM-enabled Windows Media Player versions of the files. This will not allow Macintosh users to use their CD with their iTunes or iPod. Andrew Orlowski notes "we’re yet to find a copy protected CD that the Mac can’t unbork." Indeed, one commentator on Amazon stated: "iTunes on a G5 running mac OS 10.3.4 ripped the MP3s no problem."

For now, most iPod-owning Velvet Revolver fans can use their CDs only if they violate DMCA and hack open their legal CDs. That’s right — if a consumer wants to use their legally purchased CDs on their legal MP3 player, they must become felons. Something is very wrong with this picture.

This raises yet another issue: Shouldn’t a copy protected CD be released with MP3 versions that will work with the most popular MP3 player? Nothing for Apple’s iPod or AAC format, yet it comes with Windows media versions of the songs on the CD? That’s something which should make Steve Jobs furious. This raises the question: Is there an antitrust issue here?

Beyond the Amazon reviewers, Some musicians and fans have been unhappy with the DRM system. "A vocal segment of the online population has been intensely critical of the copy protection plans, leading record label executives to worry about potential consumer reaction. Some artists, such as Virgin Records singer Ben Harper, have been bitterly angry at their labels’ decision to include the technology without their approval" noted C/Net’s John Borland.

Despite this, watch for future industry press releases claiming credit for Contraband’s sales.

The reality is the success of the disc has nothing whatsoever to do with copy protection. It’s as if the manufacturers of tube sox took credit for the U.S. military’s defeating Saddam Hussein’s army. The world’s most powerful armed forces — the most technologically advanced, best trained and equipped military defeats an unmotivated, undermanned, decaying regional force . . . Why? Because they had sweat sox which wicked sweat away from the infantryman’s feet.

UPDATE June 22, 2004  11.34pm

Macfixit notes that Velvet Revolver songs purchased from the iTunes Music Store will play on an iPod — its only the CD owners who cannot transfer songs to their pods.

My apologies for passing along bad information  . . .

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UPDATE December 18, 2004  7.14am

Another way to avoid non-permissioned vendors from adding softare or altering your PC is to turn off the CD-ROM auto run — that defeats nearly all of these silly systems which do not allow you the fair use of a CD you legitimately purchased to be played on your PC or iPod.

See this link:   Turn Off the CD-ROM Autorun
http://www.annoyances.org/exec/show/article03-018


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Sources:

Lock-down CD scores No.1 hit
By Andrew Orlowski in San Francisco
The Register, 18th June 2004 08:56 GMT

http://www.theregister.co.uk/2004/06/18/copy_protected_cd_smash/

Copy-blocked CD tops U.S. charts
By John Borland
CNET News.com, June 17, 2004, 3:48 PM PT
http://zdnet.com.com/2100-1104-5238208.html

Velvet Revolver Shoots Straight To No. 1
Margo Whitmire, L.A. (Edited By Jonathan Cohen)
Billboard, June 16, 2004, 10:30 AM ET

http://209.11.49.183/bb/daily/article_display.jsp?vnu_content_id=1000532533

Turn Off the CD-ROM Autorun   
Annoyances.org, Friday, December 14, 2001
http://www.annoyances.org/exec/show/article03-018


 

For a round up of all of the Amazon DRM discussions, click "Continue reading" below.

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