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RIAA: ‘Closing pirate sites and P2P services does help’

Posted at 06 June 2012 20:55 CET by Jan Willem Aldershoff

At a House Commerce Committee hearing today on “The Future of Audio,” Recording Industry Association of America (RIAA) Chairman and CEO Cary Sherman has told lawmakers how the music industry has “transformed how it does business,” touting the fact that digital formats now account for more than half of industry revenues and pointing to an array of licensed formats and services for fans. Sherman also testified that CDs are no longer the primary format for the music business but that digital music is the leading way to distribute music. Digital music reached a whopping, nearly 20 times more revenue in 2011 than in 2004 with a total revenue of $3.5 billion.

But digital music was already very popular before it was a big revenue maker for music industry, large Peer to Peer (P2P) networks as Napster, KaZaa and Limewire distributed the music for free and pirating of music thrived. Now finally the music industry adapted to the new digital era and many music download services have been launched over the years.

And according to the RIAA Chairman and CEO, the closure of e.g. Limewire had a positive effect on music sales.  “For example, most people are familiar with Limewire, which was the world’s most popular peer-to-peer (P2P) file-sharing service.  Between 2007 and 2010, about 2/3 of filesharers on the Internet used the service”, she said. ” At the end of October 2010, a federal court finally shut them down for inducing massive copyright infringement”, she continued.

She went on to say ” The very next month, digital sales of music improved and they’ve remained higher ever since.  While this may not be the sole cause, it is not a coincidence, just a couple of months ago, market research firm NPD released a survey showing that more than half of the people who had used Limewire did NOT go to another illegal music site to get their music after the shutdown, thanks to the availability of legal music download services.”

While the RIAA thinks fighting piracy is a key element in their strategy, the Chairman also considers innovation just as important as she added;  “We continue to believe that the best and single most important anti-piracy strategy remains innovation — experimenting and working with our technology and Internet partners on consumer-friendly new business models”.

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There are 6 comments

MyCE Member
Posted on: 06 Jun 12 22:23
    Maybe it had more to do with having a legal alternative to downloading the music as opposed to the fact that Limewire was shut down. Limewire was not the only sharing network around.
    Blown to smitherines
    Posted on: 07 Jun 12 04:52
      The riaa / mpaa are refusing to open legal music / video services for Australia, but at the same time are attempting to wage a war against consumers for illegal downloads.

      Shutting down these unauthoriused sites/services will do nothing but piss everyone off, and increase carbon footprint as people will have to rip/convert to a format that works for their purposes.

      I'll also point out that I'm amazed at the speed (and quality) of rips coming from asia. Some asian friends are pulling down high quality 1080p rips of movies/music, days before they even appear in cinemas here, and before even low quality screeners appear on torrent/usenet.

      Good luck to them. They've already lost the war.
      MyCE Rookie
      Posted on: 07 Jun 12 07:41
        RIAA: ‘Closing pirate sites and P2P services does help’

        NO SHIT!!!!
        MyCE Rookie
        Posted on: 07 Jun 12 09:43
          incase people didnt get my last comment, that was sarcasm
          MyCE Resident Commenter
          Posted on: 07 Jun 12 18:05
            Originally Posted by chickenlittle
            incase people didnt get my last comment, that was sarcasm
            No shit.
            Blown to smitherines
            Posted on: 08 Jun 12 01:13
              Originally Posted by chickenlittle
              incase people didnt get my last comment, that was sarcasm
              Smileys help
              TBH, I just thought you were off your rocker

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