Piracy is Progressive Taxation, and Other Thoughts on the Evolution of Online Distribution
Subject:   RIAA's continued piracy spin
Date:   2004-04-08 19:00:21
From:   Trackback from anonymous2
Almost a year ago I discussed George Ziemann's RIAA's Statistics Don't Add Up to Piracy article. George pointed out that the RIAA is spinning itself a crisis about the piracy on the Internet. Now that many music companies are recovering it becomes clear the the RIAA is spinning FUD (Fear , Uncertainty, Doubt). The New York Times rolled out A Heretical View of File Sharing in which two university professors conclude the same thing that George Ziemann saw 18 months ago: Using complex mathematical formulas, they determined that spikes in downloading had almost no discernible effect on sales. Even under their worst-case example, "it would take 5,000 downloads to reduce the sales of an album by one copy," they wrote. "After annualizing, this would imply a yearly sales loss of two million albums, which is virtually rounding error" given that 803 million records were sold in 2002. Sales dropped by 139 million albums from 2000 to 2002. I believe the numbers, no matter what the RIAA Cartel says. This brings me back to something I've been saying for the past three years: There are three distinct sub markets inside the entire music consumer market: People who will never buy music, and always steal. People who will buy music if it is easier to buy than to steal. People who will always buy music and never steal. The first group might be people who are poor or who have an ethical/moral objection to buying music. The third group is the...