Latest numbers from the BPI show that recorded music sales in the UK declined by 3.7% last year. The BPI should be given credit for not simply hiding behind online piracy. Chairman Peter Jameson pointed the finger squarely at physical CD piracy but also, by mentioning competition from computer game sales, hinted at the fundamental shifts in consumer behaviour that are also key to the dip in music sales.
As we have been saying at Jupiter for some time, music’s role in our society is changing. Youth no longer define themselves solely by music but by a wider range of lifestyle options and spend their money accordingly.
The CD is an overpriced low value product. If the music industry is going to stand any chance of slowing the decline, it needs to overhaul traditional music formats and get serious about licensing content online.
The music industry was artificially buoyed in the 1990s by the CD replacement cycle. That era has come to an end. Consumers and their expectations have changed massively and the music industry needs to start playing catch up….now.