| This article is ridiculous. It has cherry picked statistics and misrepresented them. In 2011 digital downloads of music (through legitimate services, eg: itunes, spotify) GREW almost 20%(!!!). The reason that the overall statistics show a drop is because of physical media being included and that has fallen a huge amount: > Internet music growth was insufficient to offset falling sales of music on physical supports, down 11.5 percent to EUR 412 million, with the overall recorded music market falling by 3.9 percent in 2011. If you ONLY consider the digital side: > Download revenues grew by 18.4 percent compared to 2010. Streaming and subscriptions grew by 73 percent to EUR 39 million. Subscriptions services such as those from Spotify and Deezer grew by 89 percent to EUR 26 million. http://www.telecompaper.com/news/french-online-music-worth-e... So when the author says: > So if piracy is down massively in France, one would expect that the revenues are soaring, right? He is being deceitful. Revenues are soaring..., they're up almost 20% on 2010. If the aim of the three strike rule was to stop digital piracy and increase digital sales that is exactly what it has achieved, they've dropped piracy 50% and increased sales 20%. You can't include the physical media sales in the latter to make a point... |
He uses the total revenue metric because that is what the industry has been using in its lobbying and PR efforts for many years. The industry has claimed that the decrease in total revenue it has experienced is being driven entirely (or almost entirely) by piracy. If this were true, then the piracy reduction in France would lead to higher total revenue.
Since that has not been the case, the link between piracy and total revenue seems to have been overstated by the industry.
The author then suggests that the drop in total revenue has been caused by new, less profitable formats, which is exactly what you pointed out (with evidence), rather than piracy.
I agree that the headline and some of the language are a bit sensationalist, but the point of the article is valid and in agreement with your points.