AfterDawn: News

Study says P2P hasn't harmed British music sales

If it's indeed true that there are lies, damned lies, and statistics, then surely all the studies that have been published about the "real" financial effect of P2P file sharing on the music industry fall into the latter category. It seems there's another one to add to the pile. This one was compiled by Capgemini, a consulting company that specializes in helping businesses transition between different technologies.

Capgemini's report, which analyzes falling British music industry revenues since 2004, indicates that nearly the entire difference can be explained by the transition from CDs to downloads and heavily discounted CDs. File sharing is noted as having either a neutral or net positive effect on profits.



Although the report itself is confidential, even if it weren't would we really know anything more than we do now? An organization (Capgemini) attributes market changes to factors related to their expertise. However, this simple explanation doesn't seem to take into account other obvious factors such as competition from movies and video games. It seems that yet another study has just made yet another educated but ultimately flawed guess about what's behind consumer trends.

In reality, the number of factors involved is almost certainly too complex to address in this way, and it still doesn't bring us any closer to answering a much more important question of what the industry can do to increase revenue.

Source: The Register

Written by: Rich Fiscus @ 22 Oct 2007 0:54

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• 6 comments

• Ragnarok8

  We all know that the vast majority of people that pirate wouldnt have actually bought the song/game/movie anyways (those that would have, usually buy it after downloading it). Having said that, I think its only obvious that P2P has a minimal effect on real sale

  22.10.2007 01:09 #1

• nobrainer

  This is obvious but the;
  
  British music industry
  British Government
  FACT(Federation Against Copyright Theft)
  BPI (British Music, TV & Film Industry)
  IFPI (International Federation of the Phonographic Industry)
  British Media
  
  refuse to mention this fact that the downloads have exceeded previous sales but now ppl are choosing the tracks they want instead of an album full of sh*t so their revenue is steadily decreasing and the only way to justify this to the public is to blame file sharers. It is a convenient way to include all sorts of anti consumer drm into all media types with phone home abilities, now why would a nation obsessed with watching the general public want these tools? If you look on the bbc web site there is not a single mention of these new findings as they don't want the truth getting out.
  
  the Serious Organised Crime Agency (SOCA) which was set up to tackle "serious crime" has mainly been pursuing file sharers and watching political activists since the Blair Brown government came into power so if this was widely known, i think ppl would be a little pissed that the British fbi was created as a tool for big business.
  

  Track What Companies Have Edited Wiki http://wikiscanner.virgil.gr/ (very heavy load atm)

  22.10.2007 04:20 #2

• themboots

  Yup. Not really news... I download tons, but my CD buying habits haven't changed that much, although I tend to stick to buying reasonably priced CDs whereas before I was a bit more liberal in my spending...I guess what I'm getting as is that I still buy the same number of CDs as before! Can't stop p2p though, especially now with private p2p apps like GigaTribe out there...

  22.10.2007 09:31 #3

• borhan9

  Quote:Capgemini's report, which analyzes falling British music industry revenues since 2004, indicates that nearly the entire difference can be explained by the transition from CDs to downloads and heavily discounted CDs. File sharing is noted as having either a neutral or net positive effect on profits.Quote:In reality, the number of factors involved is almost certainly too complex to address in this way, and it still doesn't bring us any closer to answering a much more important question of what the industry can do to increase revenue.After all this we haven't got any closer to what the factors are if its about downloads it maybe the fact that the way consumers purchase their music now has changed and the format of it has changed like when we moned from Tape to CD's this will see CD's eventually go down to nothing and digital being the way of the future.

  24.10.2007 16:51 #4

• wetsparks

  If England's music is anything like America's music then it is 99% crap and not worth the money and the gas to go buy it. The music industry needs to realize that fact before they can make any changes.

  25.10.2007 15:30 #5

• emugamer

  Quote:However, this simple explanation doesn't seem to take into account other obvious factors such as competition from movies and video games.Well, speaking from an American point of view (because there was a similar "study" done), it's a combination of the rising gas prices, sky-rocketing health insurance and the overall increase in the cost of living. These people have such a huge ego to think that I would be turning to them and their mindless entertainment in order to escape the burdens of keeping my head above water in these stressful financial times. My CD buying habits haven't changed. I follow the artists that I like and buy their music. Mostly used though, at a much reduced price. Although I'm open to new acts, I haven't had any catch my attention in a long time. These studies are a crock. More people getting paid for doing nothing.

  25.10.2007 17:41 #6