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Liner Notes
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The
RIAA Music Downloading Controversy: Both Sides of the Record
By Darcie-Nicole Wicknick
Special to MusicBizAdvice.com
ECONOMIC EFFECTS OF MUSIC DOWNLOADING AND FILESHARING
The recent commercial by respectcopyrights.org about bootlegging movies, which depicts
film industry employees in a host of jobs talking about how piracy impacts their job
security and financial stability, applies to the music industry, too. Most people
understand the economics that one lost sale has a financial ripple effect. But what may
not be as apparent is this: Low sales mean fewer new artists get signed. As poll
respondent S.W. put it, "The more revenues slump, the less labels are willing to sign
new and innovative acts. As CD sales lower, labels are looking for safe bets."
Additionally, established artists may not get their next option picked up--meaning that
the record label could drop Mr. or Ms. Superstar today right on the rear end.
Sales from the current album, among a host of other factors, project sales for the next
album. If those projections are low, the chances that the artist's option will be picked
up are greatly lessened. And even when an artist's popularity is way up and the kids are
digging him or her, that artist may not get as much tour support money (a risk for the
label), so you may not ever get to see them play. In effect, that artist just lost at
least a half a years' salary from the tour that never happened. Non-writing artists who
don't have publishing royalties to fall back on are particularly hard-hit.
Sales of rare and used records are affected as well. J.A.T., an employee at a rare and
used record store in Boston, admits that sales have suffered because of downloading. And,
while iTunes doesn't hurt the industry (again those are licensed and paid for downloads)
it can hurt stores like his - ones that OFFER the obscure and hard to find music that
people are getting for cheaper, and at a lesser quality, online. This year alone, Boston
residents have witnessed the closing of no fewer than four old crate-digging sources. An
argument can also be made that it can diminish perceived value of an artist whose music
trades at $100 but is reissued online-only for $10!
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