Published Oct 04, 2013Bad news for Metallica drummer/mega-douche Lars Ulrich: according to a recent report conducted by the London School of Economics, file sharing may actually be helping the music industry.
In the study, researchers looked at online sales data from across the entertainment industry. The result: internet-based revenues accounted for a significant part of the music businesses's growth since it began adopting file-sharing platforms back in 2004.
"Contrary to the industry claims, the music industry is not in terminal decline but still holding ground and showing healthy profits," said study author Bart Cammaerts, senior lecturer in the LSE Department of Media and Communications, in a press release. "Revenues from digital sales, subscription services, streaming and live performances compensate for the decline in revenues from the sale of CDs or records."
The report goes on to add that although "The music industry may be stagnating… the drastic decline in revenues warned of by the lobby associations of record labels is not in evidence," and had record companies adopted online file sharing formats earlier (like, say, when Napster came out back in 1999), they may have experienced financial growth much sooner.
The report also says that by not embracing file sharing distribution methods, countries like the UK and U.S. are falling out of step with the growing online culture, and that copyright laws don't necessarily serve the best interests of its creators.
"Insisting that people will only produce creative works when they can claim exclusive ownership rights ignores the spread of practices that depend on sharing and co-creation and easy access to creative works," the report says. "This insistence privileges copyright owners over these creators."
Sadly, Canada is nowhere to be seen in the 18-page report, even though our government seems pretty concerned about us playing Katy Perry singles at our weddings.