Another take on the RIAA sob-story
blog.ramenmusic.com
blog.ramenmusic.com
Now, I know that no good can possibly come of trying to refute these "arguments", but... to paraphrase the hero in the film "Friday": it's Saturday, and I ain't got sh$t to do! So:
1) "The numbers are not adjusted for inflation."
Adjusting for inflation actually makes the collapse in turnover more pronounced, not less. Ditto adjusting for population or median income. Doh! The fact that he doesn't see this in his own exquisitely crafted inflation-adjusted graph is evidence, were it needed, that there is none so blind as he who will not see.
2) "These are stats from the RIAA. America only."
I should start by saying that this "argument" is slightly less asinine than the previous. It's important, though, to be clear about how this fact presents a problem. If we're arguing that this graph is evidence of the death of the music industry, then we probably should be looking at global sales (on the other hand, the US is the largest and most important music market and thus is significant in its own right). If we're, however, arguing (as most sensible, informed observers are) that filesharing/etc has a deleterious effect on music sales, then it is sufficient for the graph to display like-for-like data (which it does). After all, the effects of piracy are going to be similar irrespective of geographical location. If anything, one would expect more piracy in e.g. emerging markets.
3) "The type of graph specifically masks and trivializes the growth of digital, enhancing the sob story."
Right, so the author whinges in point 1 about data not being adjusted for inflation. "We need correct absolute figures!" screamed the author. But now that we're at point 3, the problem is now that the data is showing absolute rather than rate of growth figures. "We need percentage growth figures!", screams the author. This is just silly. He admits as much by conceding "Ok, ok, that’s kind of cheating because pre-2004 there were virtually no digital sales, but hey, the point is digital has been growing quickly". Sorry, but no, the point is not that digital has been "growing quickly", the point is that the music industry, as a result of the pirates' activities, have been hemorrhaging cash. If digital is growing so quickly and everything is fine and dandy save for a few greedy lawyers/execs/etc at the RIAA/choose your bogeyman, then why is EMI so dead?
Here's another turkey:
"Here’s the actual situation, properly adjusted for inflation, and using a normal line chart instead of a complicated stacked area chart."
So whereas a few sentences ago the author was whinging about the data not being aggregated globally, he now wants the data _disaggregated_ on distribution format. If the question is "does piracy negatively impact music?" or "is the music industry in trouble as a result of piracy?" then cumulative values are exactly what we need to look at, which means we have to look at those pesky, "complicated" stacked area charts.
The only upshot to this fellows little "analysis" was that as a result of it, the RIAA is $25 richer. Well done!
There are only 2 reasons I wrote this article:
1) The original chart is horrible. It's embarrassing that it was published by reputable sources due to it's awkward and very skewed presentation of data. The fact that figures weren't adjusted for inflation is not a "small, irrelevant detail" but rather a fundamental requirement when graphing monetary value over time.
Regarding the stacked vs. line chart: The stacked chart is "complicated" because although the formats are broken down, it's actually very hard to get a read on any individual format's numbers over time. A line chart is a more simple (less sexy) way of showing the total over time AND the individual formats over time.
2) I'm kind of fed up with the "sky is falling" sad face the RIAA puts on and the overblown news stories dramatizing this fall. Come on, first digital revenues in 2004? There's a very clear business reason the sky is falling. It's simply embarrassing that after avoiding/fighting digital distribution for years and years, the RIAA tries to rewrite history, explaining their losses on lions, tigers, bears and pirates.
So, again, to be clear, the goal of the post was not to prove or disprove anything, but to correct and clarify.
Regarding my relationship to this story: I have many dimes invested. I am a musician and run a small business selling digital music by subscription (which encourages sharing) and which was profitable from the day of launch.
Cassettes complimented vinyl, rather than replaced it. Even many who primarily wanted portable music would purchase on vinyl and then tape themselves. That gave much better quality than buying pre-recorded cassettes. It was pretty common when I was in college for even the people who only had cassette players to purchase their music on vinyl, and have someone with a turntable and tape deck tape it for them.
CDs, on the other hand, were largely a replacement for vinyl, and now digital downloads are replacing CDs.
After looking at the raw numbers, I was also very curious how exactly they were aggregated and collected. Perhaps some of the "events" on the chart are along the (more boring) lines of "Label XYZ joints the RIAA and starts reporting." I'm not too up on my RIAA history though...
How is someone who is pirating music giving the RIAA money? Isn't sharing copyrighted materials in fact an illegal act?
I've long thought that a lot of the RIAA hatred stems from pirates looking for a scapegoat to portray as the "real" bad guy so as to negate their own guilty feelings. It's easier to rip artists off if you feel like you're ripping off some evil, faceless corporation instead. It's silly that anyone was upset with the RIAA over suing people who were pirating their copyrighted materials. They were well within their rights to do so, and it's their job to protect the rights of the content owners they represent.
Unfortunately, opinions like this one are often drowned out. Many people have grown so accustomed to the free ride that they don't want it taken away, and they don't want to be reminded that they are in fact ripping artists off. The artists must always be kept out of the equation.
Because actual research shows that a lot (but certainly not all) of the people who pirate music are also big consumers of music, i.e. they both download illegaly and buy music. The divide between freeloaders and honest consumers that the RIAA portrays doesn't exist, it's a complex greyscale.
Other research has pretty much proven that piracy emerges when a large section of the consumers don't agree with the pricing of goods on a market, and a monopoly or other disruption causes the market not to self-correct. Now you can fight a piracy market either with legislation and law enforcement, or you can actually compete with it, provide better service and better pricing.
This is why iTunes is such an incredible hit, it corrected the market. DRM-free music for 99 cents a song is a much better product than a DRM-laden album for 15$, and for a lot of people this product is better than the pirated product which means they became honest consumers again.
This is why Spotify and Last.FM are such incredible hits. Unlimited music, and pay 15$ a month to remove the ads. This is an even better product than iTunes, and has won over another huge part of the pirate consumers.
Where I live, kids these days do not have mp3 collections. Few of them knows what an mp3 actually is, but almost all of them have iTunes or Spotify. They don't understand why you would want to keep a file library on your computer, they open a program, search for what they want to listen to, and get to do it instantly.
And this is what piracy proponents have been arguing the entire time: The way to beat piracy is to provide a better service, not to bludgeon people into accepting your monopoly price with lawsuits and propaganda.
But he's swimming in money, by selling "The Justin Bieber Experience", concerts, merchandise, acne ads, and now even a motion picture. And most of that money simply doesn't exist in that RIAA graph of the article, because it's not cd sales, it's simply not how he makes his money.
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1.3 billion views in total. Love him or hate him, that's a pretty impressive number.
I really like this way of describing things, thank you.