In 2000, consumers bought 785.1 million albums, last year they bought 588.3 million albums.
In 2000, the top ten selling albums in the US sold a combined 60 million copies. In 2006 they sold only 25 million.
More than 5000 record company employees have been laid off since 2000. The number of major label companies dropped from 5 to 4.
About 2700 record stores have closed across the country since 2003.
Now the major labels are insisting on deals for many artists that include the companies getting a portion of touring, merchandising, product sponsorship and other non-recorded-music sources.
Among the biggest reasons for this is the online piracy issue.
If you don't think this effects you then you are either a nobody or a moron.
Just to play devil's advocate here...
Music piracy and software piracy are slightly different. When I download music, it's usually music that I want to listen to. I'm talking music where I would otherwise buy the album. Granted, sometimes I'm asked to learn a song that I really couldn't care less about and don't want to spend money to buy said song, let ALONE an album full of songs like it... and then I'm thankful for my Limewire. But for the most part, I'm reminded of a band I like, so I set up about a dozen or two downloads, and walk away. When I come back, POOF! Instant album. Unfortunately, it's pulling money directly out of the record industry. I really should move to iTunes one of these days.
BUT... isn't the mantra of all pirates, "I wouldn't have bought this software anyway?" I'd guess for the most part, this is true. The "something for nothing" crowd would just sit around and use the freeware available on the whole. Thus, there's less DIRECT profit loss.
Now, the flip side of the coin. I remember a few years ago (ok, more than a few) I bought the Sugar Ray album, based off of the two singles released from it. I dug the acoustic rock sound, and wanted more. Come to find out that the rest of the disk was a louder rock sound - completely different than the two singles. I was pissed, but the money had been spent. I felt tricked and somewhat betrayed. Today? I'd download a few more songs, and if I liked the majority of them, I'd buy the disk.
Same deal with software. Back in the day, you'd shell out a ton of money to record. When I started, I was in middle school. I had to shell out 50 bucks of my hard earned lawn mowing money (a month or more of pay) to buy a piece of MIDI sequencing software. The software was TERRIBLE, but I was out my 50 bucks, so I had to live with it. I learned a bunch of go-arounds, but I was never really happy.
Today, if a program doesn't have a trial period, I'll download a cracked version before I buy. No sense in dropping $100 on a PLUG IN if it doesn't sound good! If it has a trial, no sense in messing with a crack. I'll play with the trial and decide if it's worth buying. I can't tell you how many Flash editors I've gone through using trials and cracked versions to weed through... Still couldn't find one that I liked enough, so I bailed on the idea of using Flash on my website.
You want to know how to beat pirates? A few days before your software hits the shelves, put a "cracked" version on the file sharing networks yourself. Make this version disabled, though - like a demo. By the time people find out, it'll be too late. Some will crack the real deal, but it'll become nearly impossible to distinguish the disabled version from the real version, and people will be forced to wade through installation after installation or just buy the thing.
Sorry. I broke my lurking rule.
