LABJ Forum: Music Industry’s Sour Notes

The music industry can claim some success against online piracy, but the battle to boost record sales remains to be won. Sales at U.S. retailers dropped 4.1 percent to the lowest levels in years, according to the Recording Industry Association of America, with the number of shipments of CDs and other music products falling more than 10 percent. Industry executives point to Internet piracy, rising popularity of CD burners and a sluggish economy for the decrease in sales. So the Business Journal asks: How often do you buy CDs, tapes or other music at retail outlets?

Mario Araujom

President

AztecaNet Inc.

I buy music online about once every two weeks on the average. It’s convenient, it costs about the same, and you can listen to it online. Plus I buy more Spanish music than English and the stores don’t carry some of the music I want. And I don’t have time to go to the stores.

Nima Bakhtiary

President and COO

RiveOne Inc.

I still buy so-called exotic CDs from stores online and specialty stores. However, my behavior is changing. I find myself listening from my satellite as they enrich the content. I have over 200 CD-quality channels. Last week, I recorded the U2 concert with my PVR (Personal Video Recorder). I enjoyed it over the weekend, and I got what I want, when I want, where I want. Things are changing, and I’m not surprised.

Rob Levey

Senior Vice President of Sales and

Distributor Marketing

Herbalife International of America Inc.

I probably buy them about once every couple months at the big outlets like Tower Records or Borders. And I’m surprised music sales are down because after 9/11 I would think people would be at home entertaining with music or something similar.

Scott M. Jarus

President

J2 Global Communications Inc.

I buy a couple times a month at CD Warehouse, occasionally online. I think it’s a luxury commodity that people buy when they have money or are certain about the future, and these are uncertain times.

Anna Magzanyan

Senior Media Planner

Round2 Communications

I would say I buy once every two to three weeks. I buy CDs at Wherehouse and sometimes I order stuff online at Amazon. But I buy more now because my variety of music has increased.

David Ash

President

MacSolutions Inc.

Probably about once or twice a month. That’s consistent with my habits in the past. I actually never had a Napster account, but a bunch of my friends and co-workers used it. It was a good way to sample music, but the quality differences and the fact that the artists aren’t being supported is a big issue in my mind. I buy most of my music at stores and online.