'Music Biz is Thriving!' says CDBaby
Several of today's headlines paint a grim picture of today's
* 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
* 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
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.