Music Biz Disagrees: P2P Does Not Promote Sales

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Music Biz Disagrees: P2P Does Not Promote Sales

Demos may have this month published the second set of The research, which the International Federation of the Phonographic Industry (IFPI) commissioned from Jupiter (now Forrester) back in March, also shows how Europeans who share music spend up to €32.60 less per year on music than those who buy music generally, and nearly half as likely to buy as those who buy CDs

That may be true, but freeloaders are still more likely than others to buy digital music, the fastest-growing segment, than other folk.

Jupiter, in its report for IFPI, says: “Although it is possible that file-sharing functions as some sort of discovery tool for those digital music buyers that also file-share, it is reasonable to assume that their spend would be higher if they were not file-sharing.

“Although some music P2P users are also music buyers, the overall value of the segment is counterbalanced by the significantly larger share of other, less valuable P2P users.” Another worrying trend: “The majority of iPod owners are not regular digital music buyers.”

Robert Andrews

@robertandrews Nov 15, 2009 4:07 PM ET

Photo: pfala

Posted In: Entertainment, Music, Research & Metrics, Research

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Keith

What stood out to me is basically what Jake said we can now review a whole album opposed to blindly buying it and paying 9.99 and up for a 15 song album with only 2 or 3 good tracks on it. So yes, we spend less because we are more educated about the product. We know if it's good and we know if it sucks. Which means….oh no you actually have to put out a good product we want in order to get our $$! Technology such as p2p hasn't ended the music industry it ended the blind faith that poorly ran record labels had.

Jake

"Jupiter, in its report for IFPI, says: “Although it is possible that file-sharing functions as some sort of discovery tool for those digital music buyers that also file-share, it is reasonable to assume that their spend would be higher if they were not file-sharing"

Not it's really not reasonable to assume this. That's what discovery tools are for. The IFPI is just pissed that now listeners have the option to complete preview music and become an 'actual fan' before they choose to buy something. Instead the IFPI wants to control what content you can preview and how you preview said content. That's not music discovery anymore. That's music discovery with an agenda. Maybe it's just me, but a system like that seems like it will prove near impossible for smalls bands to gain exposure as the outlets for music discovery will be controlled by the hands a few, agenda-driven individuals.

Aaron Savage

I read the report and there is something about the language that is clanging in my head. Using words such as 'freeloaders' isn't what I would expect from an impartial report. It reads more like a piece of PR than a piece of analysis. I would like to see more information about how the figures were compiled and the conclusions reached as I am not sure I would make such a differentiator between downloaders and music purchasers, surely the point is that both do both. Where is the demographic information, where is the age breakdown, is there a significant difference between them? The music industry is in effect selling to a number of markets who consume product in different ways at the moment. This research could be highly valuable in working out how to address the issues they have but instead it seems to be taking a megaphone approach which makes me suspicious.

Aaron Savage
Interactive Mix Ltd
http://www.interactive-mix.com