Report: Apple, Tesco to blame for music industry woes
Posted by Dennis Sellers 
Oct 19, 2007 at 10:39am
A new report suggests that Apple and Tesco, not P2P file sharers, should take the most blame for the woes of the British music industry, reports The Register.
The report, prepared privately by consultants Capgemini for the Value Recognition Strategy working group, set out to examine the “value gap”, the amount sound recordings revenue has fallen in the UK since 2004. The report remains confidential, but details are starting to emerge, says The Register.
The consultants suggest that “format changes” and price pressure from discounted CDs on sale in supermarkets, are most to blame for this “value gap.” Capgemini calculates that of £480m lost to the industry since 2004, £368m was the result of format changes: principally the unbundling of the CD into an “a la carte” selection of digital songs. Of the remainder, 18 per cent was lost to piracy.
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dave Says:
Oh, yeah. How much of their ‘losses’ were attributed to illegal sharing of music playing over the radio?
There is an absolutely ridiculous lawsuit over a radio being played at a shop where people can hear music played on the radio [I guess, everyone except the owner of the radio are thieves].
Posted on October 19, 2007
Liquidmusic Says:
Dave you are SO right. Why is it that the industry blames everybody else for their problems instead of realizing that most of the music forced on us today just isnt any good its horrible. Rap music has destroyed a whole generation and rock music is boring. Quit blaming the consumer.
How about we look at the cost of a produced CD today vs 20 years ago. The record companys are only sticking with rap because its DIRT cheap to make. Its cheaper to hire a brother and a computer then it is to sign a full rock band. They wont admit it.
Posted on October 20, 2007
liquidmusic Says:
Yeah next thing the record companies will request is that every parent will have to pay a fee for every child born. 2 working ears will cost $100 and a def child will have to pay 100 to the movie industry but will get a voucher from the record industry.
All this is just in case the child hears music in a store by accident
I hate the music industry
Posted on October 20, 2007
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
dave Says:
Yes, it’s Apple’s fault that CD’s have 2 songs people like and 8 that ####. That the bands and studio’s put all their effort on the single that is pushed on radio and MTV and slap together 9 other songs to fill the CD, that’s unimportant.
And the report ignores the fact that it’s the major labels that are racking in the VAST MAJORITY of the profit of any sale, ala carte or full CD. And it ignores the fact that people can buy the whole album from iTMS for a price similar to that in stores, so people are voting with their money for what they want.
Historically, people will pay for what they like and want. Maybe if they focussed more on producing higher quality content, they might get more sales.
The only thing that is remotely correct is the small amount related to piracy. The vast majority of music being ‘pirated’ WOULD NEVER BE PURCHASED by those individuals.
Posted on October 19, 2007