Negative Effects on the Music industry
Each year, the industry loses about $4.2 billion to piracy worldwide
- Music pirates are the first to lose because the recording industry and law enforcement officials are cracking down around the world. Do the crime and you will pay the fine or do the time.
- Consumers also lose because the shortcut savings enjoyed by downloding music drive up the costs of legitimate product for everyone
- Honest retailers (who back up the products they sell) lose because they can’t compete with the prices offered by illegal vendors, or free illegal downloads. Less business means fewer jobs, jobs often filled by young adults.
- Record companies lose. Eighty-five percent of recordings released don’t even generate enough revenue to cover their costs. Record companies depend heavily on the profitable fifteen percent of recordings to subsidize the less profitable types of music, to cover the costs of developing new artists, and to keep their businesses operational. The thieves and downloaders often don’t focus on the eighty-five percent; they go straight to the top and steal the gold.
- Finally, and perhaps most importantly, the creative artists lose. Musicians, singers, songwriters and producers don’t get the royalties and fees they’ve earned. Virtually all artists (95%) depend on these fees to make a living. The artists also depend on their reputations, which are damaged by the inferior quality of pirated copies sold to the public (when transferring files from a CD to an MP3 or similar format, quality is lost).
Conclusions drawn from the RIAA argument
People who download music for free don't buy CD's, since they already got them for free, and as a result they take from the industry, but don't put any money back in, destroying both the music industry and anything that relies on the music industry.