Gorskar points us to an interesting article over at The Register website. Research by a man called George Zieman gives the true reason for falling CD sales: the major labels have slashed production by 25 per cent in the past two years:
After keeping the figure rather quiet for two years, the Recording Industry Association of America (RIAA) says the industry released around 27,000 titles in 2001, down from a peak of 38,900 in 1999. Since year-on-year unit sales have dropped a mere 10.3 per cent, it's clear that demand has held up extremely well: despite higher prices, consumers retain the CD buying habit. |
In August analysts Forrester attributed the decline in sales to the economy, citing historical precedent, and argued that music downloads could revive the industry.
So why isn't the RIAA trumpeting this affirmation in music sales, and something of a renaissance in its business efficiency?
Perhaps because the RIAA's version of the truth doesn't fit with the facts. Zieman points out that only 3,000 sales of each of the missing 12,000 titles would have been enough to see overall growth continue to grow.
You can read the complete article via this link and you can find George Ziemann's article at MacWizards Music.
Source: The Register
