It seems that there are always people who want to argue the sky is green and the grass is blue. Such seems to be the case with the London School Of Economics recent report on the impact of piracy on the creative industries.
The primary argument is that although recorded music sales are down (at least they got that much right) this is compensated for by live concerts and other revenues. As we point out here, over and over again these are all revenue streams that existed prior to the internet and therefore are an admission that the internet has failed to create a new middle class of professional musicians.
- Touring… existed BEFORE the internet
- Merchandise (T-Shirts)… existed BEFORE the internet
- Film/Sync Licensing… existed BEFORE the internet
- Sponsorships/Endorsements… existed BEFORE the internet
The Music Industry Blog makes quick work of debunking this dubious and logically flawed study.
The renowned LSE this week published a paper arguing against implementation of the UK’s Digital Economy Act and calling for policy makers to recognize that piracy is not hurting the music industry but is in fact helping parts of it grow. To these academic researchers the findings probably feel like some dazzling new insight but to anyone with more than a passing understanding of the music industry they are as if somebody just time travelled back to 1999. The piracy-helps-grow-the-pie / help-makes-the-sky-not-fall / actually-helps-the-industry arguments were common currency throughout most of the first decade of the digital music market.
In more recent years though, following perpetual revenue decline and the growing plight of struggling ‘middle-class’ artists and songwriters, most neutral observers recognize that the piracy=prosperity argument just doesn’t hold water anymore.
Though of course that won’t stop the pro-piracy lobby fawning over this ‘research’ as more ‘evidence’ for their case.
PLEASE READ THE FULL POST AT THE MUSIC INDUSTRY BLOG HERE:
The 1 Percent: Income Inequality Has Never Been Worse Among Touring Musicians…
Note that in 1982 almost 40% of the revenue was divided between the “bottom” 95% of artists, while in 2003 they received only 15% of all revenue.
READ THE FULL STORY AT DIGITAL MUSIC NEWS:
Why Telling Artists To Stop Selling Music & Just Make Money Through Live Shows Is Ridiculous
Give-it-all-awayGiving away all your music for free and trying to make your living via other revenue streams can be a valid approach. Except that I don’t know of any musicians actually doing that.
There are a lot of reasons it’s ridiculous for people in the tech world, in particular, to say that you should just give away all your music for free and make a living through live shows.