RIAA accounting practices a leading cause of declining music sales

Monday, May 17, 2004 | 05:23 AM


I'm not in the habit of lifting entire pieces whole; I'd rather excerpt someting and add my own comments to it.

But John Paczkowski -- who writes Good Morning Silicon Valley, one of the first (and best) tech blogs -- just nailed this story so well that I am reproducing it in its entirety here. (GMSV should be on your "must read" list).

Here's his take on a recent discovery of accounting shenanigans in the Music Industry:

RIAA accounting practices a leading cause of declining music sales

Few organizations are more dedicated to making sure the public cannot quite understand its sales data than The Recording Industry Association of America.

So it's welcome news whenever someone is able to make sense of that data and the rather ... curious methods the RIAA uses to report it. Since the advent of peer-to-peer networks, the RIAA has consistently reported a decrease in CD sales, and just as consistently blamed that decline on file sharing. And it has always had the metrics to back that claim up. But it turns out that those metrics are a bit misleading. The RIAA reports a sale as a unit SHIPPED to record stores, not as a unit sold to consumers at those record stores.

Now here's where things get interesting: The RIAA forecast a 7 percent decline in recorded music sales for 2004, but data from market research outfit Soundscan, which measures point-of-purchase sales, shows a 10 percent increase in music sales when comparing the first quarter of 2004 to the first quarter of 2003.

What does this mean? Sales of recorded music haven't declined, shipments have. Retail outfits are moving increasingly toward a just-in-time sales model. Rather than order more music than they need and eat the overrun or pay to ship it back to the distributor, they now order only what they think they need.

This doesn't mean retailers are selling less music (a retailer can order 1000 CDs one month and sell 600 of them, 800 CDs the next and sell 700). But it does mean that the RIAA can claim a decline in sales -- at least until a gust of fresh air blows the smokescreen away.

We always knew that accounting in Hollywood was bizarre, but we never had proof that it as on par with Enron. Too bad the RIAA isn't a publicly traded mstock . . . What a short it would be.

RIAA accounting practices a leading cause of declining music sales
John Paczkowski
Good Morning Silicon Valley, Fri, May. 14, 2004

Monday, May 17, 2004 | 05:23 AM | Permalink | Comments (1) | TrackBack (1)
de.li.cious add to de.li.cious | digg digg this! | technorati add to technorati | email email this post



TrackBack URL for this entry:

Listed below are links to weblogs that reference RIAA accounting practices a leading cause of declining music sales:

» Music Sales Are Down Because of... Accounting? from BusinessPundit
Barry Rithotlz decides get out his favorite punching bag yet again. This time he is pointing out that record sales are down because the RIAA... [Read More]

Tracked on May 17, 2004 8:38:42 PM


Thuriam is a technology consultant providing world-class services, Customer interaction in varied application areas and focused on BPO & Knowledge industry. Thuriam assists in the identification and development of business opportunities in the emerging BPO & Knowledge Services markets.Offshore outsourcing of your Business Process is a compelling business strategy. At Thuriam we attempt to identify the possible outsourcing opportunity and present our capability as an integrated Technology and process Outsourcer catering to all your needs. We would be your partner to provide end to end services across the value chain.Our integrated analyses provide industry, competitive, customer and technology innovation along with strategic, tactical, and operational recommendations to help maximize the bottom line from business strategy, service delivery, marketing and sales efforts. We provide high end services by utilizing the latest technologies and at low costs.
Our Services:
Knowledge Services
Medical Backoffice Services
· Medical Transcription
· Medical Billing
· Medical Coding
Legal Consulting Service
· Legal BPO
· Legal Documentation
· Legal Research
Data Research Services
· Data Collection & Extraction
· Database Services
BPO Services
Digitization Services
· Transcription Services
· Media Conversion Services
Data Processing Services
· Form Processing
· Data Entry
Data Conversion Services
· Electronic Publishing
· Prepress Services
· Data Capture
Medical Transcription:
Our endeavor is to constantly re-engineer the dictation/transcription process in order to take full advantage of the latest advances in computers, networking and digital technology. Combining these technologies with competent transcription skills allows us to provide cost-effective solutions to meet your transcription needs. We offer clients a set of core competencies, which are invaluable to the health information management professionals as well as other professionals who must dictate a steady stream of reports and correspondence. We are specialized in the following Reports - Discharge Summary, Death Summary, Progress Notes, Clinical Notes, Emergency Notes, History & Physical, Radiology Consultation Reports, Office Visits, Physician Letters, and Psychiatry Reports etc.
Medical Billing:
In today’s competitive business world medical billing acts as a key in the revenue management of health care industries and hospitals. Medical Billing plays a major part in the income of the respective organization. Any inaccuracies made in pricing, missed charges, errors in coding during manual procedure will turn out as a very huge loss to the organization. Billing process includes patient registration, charge entry, patient statement and enquiries, standard reports and accounts receivable management. Thuriam’s medical billing service enables to eliminate these loses and accurately process your medical billing. more…
Medical Coding:
In today’s business world Medical coding is considered to be a serious business among the health care industries and hospitals. Manual errors while performing this task may create a major problem and huge loss to the organization. Thuriam’s Medical coding consists of combination of numbers and alphabets adhering to different coding standards. These codes help medical insurance and others to understand what was wrong with the patient, whether treatment was necessary and what services were administered. All these coding helps the non-medical staff at the insurance and other health service providers to handle the claims and make payments on predetermined basis. more…
Legal Consulting Service
At Thuriam we have highly dynamic and high growth Off-Shore service delivery space of Legal Consulting and Back Office Services, where most of the initial process delivery opportunities are moving towards commoditization, we have invested significantly in creating a unique Solution Based value proposition.
Our diversified business practice represents a wide range of commercial, industrial and financial enterprises, both publicly and privately held. Thuriam has the following work departments: corporate, employee benefits, health law, intellectual property, private clients, regulation and government affairs, tax and trial. We offer Legal Drafting, Deposition Summary, legal coding, legal billing, paralegal, legal research, to documentation service. more…
Data Harvesting Service
We believe that our Value Proposition framework when tailored to meet our client's specific business and process delivery requirements will further enhance the value we passionately deliver to our customers on consistent basis. We understand just how critical building and maintaining directories and databases is to any business, educational or research organization. Our expertise in data harvesting domain includes Data Capturing Service From The Web, Online data entry and internet search, Catalog / database management, Internet research, email mining and customized list making, Portal management support, e-Newsletters / e-Clippings, Secondary Research / Market Intelligence. more…
Data Conversion Service
Our world leading data conversion capabilities include services such as e-Book Conversion, XML, SGML, HTML, PDF and Tiffs. This apart, Thuriam converts data stored on paper, proprietary file formats and many other formats into the choice of data and medium that you would desire. Worldwide users of our data conversion services include major publishers and manufacturing companies, academic and research libraries colleges and universities, and public utilities.
Many organizations are faced with mountains of non-standard source material created over the years by a variety of organizations and individuals. Their current and future business goals depend on converting this data to a standardized database. Thuriam offers a full range of consulting and data conversion services to help organizations meet this critical need. We not only convert data, we understand your objectives in a broader context. That's why we proactively suggest improvements in database design, and identify simple solutions that add power at little or no cost. We foresee and resolve integration issues, always focusing on improving the ease, reliability, and speed of your database. more…

Digitization Service
At Thuriam, we provide the specialized Digitization with the combination of individual project management capacity and experience by retrieving the contents from videos, books, images, archives, photographs, government records and collections, and any other documents and converting in to comprehensive digital formats for universal access, web delivery uses, copying, and other means of distribution. more…
Data Processing Service
Data Processing is a constraint to be done by all government agencies, institutions, companies, industries, etc. for purposes like purchase requisitions, travel approvals, time off requests, and expense reports. Thuriam initiates Data Processing by receiving the forms from you and create a new database for the information in your forms. Then follows designing of the form structure, quality check and delivery of product. more…
Our Strategy Consulting includes
· Business Strategy & Design
· Market Analysis
· Competitive Intelligence
· Portfolio Development
· Product & Service Innovation
· Blueprints for the future
· Project Management
· Process Development

We are looking forward to the prospect of increasing India's share of the world market in BPO & Knowledge Services outsourcing through the advisory services offered by Thuriam.
To learn more about our service packages, specific to meeting your business objectives, e-mail us at: [email protected].

Posted by: Thuiam | Feb 24, 2005 1:30:56 PM

The comments to this entry are closed.

Recent Posts

December 2008
Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      


Complete Archives List



Category Cloud

On the Nightstand

On the Nightstand

 Subscribe in a reader

Get The Big Picture!
Enter your email address:

Read our privacy policy

Essays & Effluvia

The Apprenticed Investor

Apprenticed Investor

About Me

About Me
email me

Favorite Posts

Tools and Feeds

AddThis Social Bookmark Button

Add to Google Reader or Homepage

Subscribe to The Big Picture

Powered by FeedBurner

Add to Technorati Favorites


My Wishlist

Worth Perusing

Worth Perusing

mp3s Spinning

MP3s Spinning

My Photo



Odds & Ends

Site by Moxie Design Studios™