2024-02-24 16:14:50
Music execs stressed over free streaming market data/music/Scrapbook

http://www.itworld.com/%5Bprimary-term%5D/138187/music-execs-stressed-over-free-streaming

Free streaming services are replacing piracy as the chief culprit of music industry revenue loss in the minds of fiscally frustrated executives, if a number of panel discussions at a New York digital music conference are any indication.

People are listening to more music than ever before, but they are paying less for it, noted Russ Crupnick, a president at the analyst firm NPD Group, speaking at the Digital Music Forum East conference, held Thursday in New York.

Crupnick noted that the average consumer listened to music 19.7 hours a week in 2010, up from 18.5 hours per week in 2009. But at the same time, consumers have been buying less music. In 2010, only 50 percent of consumers purchased music, by either buying a CD or paying for a downloadable music track, down from 70 percent in 2006.

“We have lost 20 million buyers in just five years,” Crupnick said. Moreover, only about 14 percent of buyers account for 56 percent of revenue for the recording industry.

“Consumers have flipped us the bird,” Crupnick concluded, adding that the lost sales has thus far not been made up yet by other forms of revenue, such as concerts or merchandise sales.

The music industry has long expected that sales of music CDs would decline, as consumers move their libraries to computers and portable listening devices. Digital sales, however, have not made up for the shortfall on CD sales over the past decade. Last year, digital sales accounted for about 23 percent of all music sales, which is up only modestly from 14 percent in 2006, Crupnick said.

“We never really made the digital transformation,” he said.

The reasons behind this sales decline have been routinely debated at this conference over the past decade, the panelists noted. In years past, music executives put the blame on digital music piracy — the easy and free sharing of music with Internet software like BitTorrent — for eroding sales of recorded music.

At this year's conference, however, concern centered on the growing influence of free streaming Internet services, such as Pandora, MySpace, Spotify and even YouTube. Music listeners deploy YouTube as a streaming service, picking the songs they want to hear and minimizing the browser window, noted Eric Garland, who is the CEO and founder of BigChampagne, a media tracking company.

via Music execs stressed over free streaming | ITworld.

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