The record industry has been telling us that illegal file sharing is responsible for the decline in music sales. Now comes a report from a couple of economists from the London School of Economics that concludes the
“Decline in the sales of physical copies of recorded music cannot be attributed solely to file-sharing, but should be explained by a combination of factors such as changing patterns in music consumption, decreasing disposable household incomes for leisure products and increasing sales of digital content through online platforms.”
So there, record industry! The decline in recorded music sales from over $26 billion in 2000 to under $16 billion last year cannot be attributed “solely” to the millions of people illegally sharing billions of your songs over the same period. Its also because people are spending more of their “music money” on live performances (tell that to Live Nation). Oh, and people are poorer.
None of this bodes well for the music business in recapturing the Halcyon Days of the CD boom. But maybe the CD boom was an aberration…
Anyway, the report is below:
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