Despite Industry Efforts P2P Use Rises

Despite music and film company efforts to stem the tide, P2P file sharing levels are continuing to climb. According to data from tracking firm BigChampagne, the average number of simultaneous P2P users reached 6.86 million in the US and 9.47 million globally in November. For the US this represents a 4.78% increase over October figures and a 20.6 percent jump over November 2004. Worldwide the numbers represents a 3.14% increase month-over-month and a 21.3% increase year-over-year.

BigChampagne tracks average simultaneous users and most P2P users grab a multiple amount tracks during each session generating billions of monthly song swaps. Then there is the growing number of direct swaps via email, instant messenger, direct download or even old fashioned CD burning.

Yes the music industry has a huge problem; and despite the fact that the water is figuratively pouring over the levees, too many still have their heads underwater either trying to fix holes in the dam or praying they can hold their breadth until early retirement. Only by fully embracing change, embracing new technologies and once again giving customers a reason to buy, do they have a chance of survival.

Once again we publish…

HYPEBOT’S MANIFESTO FOR CHANGE IN THE MUSIC INDUSTRY

• Stop blaming a lack of hit product and start nurturing new talent.
• Stop suing individual file sharers and drop all copy protection to regain consumer confidence.
• Stop blaming P2P and start embracing new technologies: legal P2P, podcasting , subscription services and technologies that haven’t even been invented yet.
• Stop flirting with value-added schemes like CD Plus and CD/DVD hybrids and embrace them. Why shouldn’t every release (physical or downloaded) include bonus files of lyrics, interviews, cards, videos, and more?
• Stop charging consumers more for a CD than they pay for a DVD and start aggressively experimenting with variable pricing both in stores and with downloads.  Hit singles may sometimes cost more, but why not price more developing artists much  lower to encourage discovery. And why aren’t there more super low price samplers of new artists?
• Stop worrying about commercial radio and start supporting non-commercial, satellite and Internet broadcasting as well as mp3 blogs, online music sites and communities, and print and net delivered magazines and fan zines.
• Stop thinking that every act has to go platinum and start creating a profitable business around artists who consistently sell 50,000 – 250,000 CD’s.  Fragmented media is already leading to fewer superstars and a lot more mid-level artists.  But when the artist’s "output" resides on a hard drive rather than gathering expensive dust on store shelves or in warehouses; can’t smaller but longer term sales numbers be profitable?
• Stop trying to hide your head in the sand and embrace the change.  It can be profitable and it might even be fun!