HOME TAPING IS KILLING MUSIC, PART 823,257

[defrog]

ITEM: Atlantic Records, a unit of Warner Music Group, has become the first major label to report that more than half of its music sales in the US are now from digital products, like downloads on iTunes and ring tones.

Granted, Warner Music overall still only makes 18% of its money from digital sales, and most analysts say the overall music industry won’t reach the download/CD tipping point until 2011. But it’s still noteworthy for an industry that once tried to kill the idea of digital downloads.

Of course, they’re still whining that digital doesn’t make as much money as CDs, which means that in five years the music industry will only make $9.2 billion, as opposed to $10 billion this year. Poor dears.

Perhaps they can qualify for a bailout, too.

Will A&R for food,

This is dF

Comments

[thelastaerie.livejournal.com]

It's a amazing that they are not making "more" profit with the digital format, judging by how expensive they are charging for it. And it's a format that they could easily eliminate so many middlemen/distributors... I think they are just not creative enough in their business model.

[def-fr0g-42.livejournal.com]

I had a similar conversation with my friend Cat about how they can justify charging $9.00 for a digital album, which suggests the physical packaging + disc was maybe a $4.00 expense. I know the price includes more than the physical stuff, but I'd like to see a breakdown of the expenses, or what that money goes to. If it goes straight to the artist, or if they get higher percentages, then it might be justified, but I have the feeling it goes straight to Guy Hands' personal bank account (or whoever).