what could possibly explain the inability of the music business to create value any more? Piracy? Really.
…While digital music revenue has grown 1,000% over the past seven years, the entire music industry has lost a third of its value over that same time period. And while digital music seems to represent both the best hopes and the worst fears of the industry, even its growth is slowing – only 6% last year, down from 9.2% growth in 2009. Digital sales comprise about a third of the industry’s total revenue.
Pirates (Not Inflexible Business Models) Are to Blame
“While record companies are innovating and licensing every viable form of music access for consumers,” says IFPI chief executive Frances Moore, “the music industry is still haemorrhaging revenue as a result of digital piracy.”
Moore labels this “a crisis affecting not just an industry – but artists, musicians, jobs, consumers, and the wider creative sector.”
This sort of rhetoric – “crisis,” “haemorrhage,” “the need for rule of law on the Internet” – isn’t new for the music industry.