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'Music Biz is Thriving!' says CDBaby
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2003-03-19
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Several of today's headlines paint a grim picture of today's music industry:

* Global marketing research firm Ipsos reported that its quarterly digital music study found that 80% of downloaders age 12 and older feel that free downloading and file sharing doesn't hurts artists while only 16% believed that record labels were justified in taking action against file-sharing services.

* Reinforcing Ipsos finding that 40 million Americans downloaded a music or MP3 file in the past 30 days, Sharman Networks announced the 200 millionth download of its Kazaa Media Desktop.

* Moody's Investors Service recently lowered EMI's debt ratings from Baa2 with a negative outlook to Ba1 with a stable outlook, "based on concerns regarding the dynamics of the recorded music market."

But in order to get the full picture of the music industry, one needs to look a little deeper to an announcement by CDBaby that it had just paid out $3 million to musicians selling their CDs on the site. Not only that, but CDBaby's sales doubled, in the face of the mainstreaming of downloading & file sharing as well as massive closings of brick-&-mortar stores.

CDBaby founder Derek Sivers goes on in the announcement to ask" "So what's this about the music industry being in a slump? Perhaps it's only the major labels that are slumping while the independents are thriving?"

That's at least closer to the full picture.


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