One-Third of Records Sold in the U.S. are Pirate Copies

On June 23, 2005 the Wall Street Journal reported the results of a recent study conducted by the International Federation of Phonographic Industries (IFPI). The report states that fully one-third of CDs sold in the world last year were pirated, with sales totaling $4.6 billion. Globally, it said 1.2 billion pirated music discs were sold in 2004, 34% of all sales. In a record 31 countries, fake recordings now outsell legal ones, the report said. The value of the world pirate market for music is equal to the legitimate markets of Britain, the Netherlands and Spain combined, the report said.

Of course—this all trickles down, meaning that record companies are allocating less and less for new artist development. As profits decrease, the companies are not as willing to risk new signings.

Copyright © 2005 C. Stephen Weaver