I wanted to update last night, but couldn't because Blogger was down.
Now, how about the RIAA?
According to
them(pdf), their total number of units shipped went from a high of 1160.6 million in 1999 to 859.7 last year, a 26% decrease, and they say that downloading is a direct cause.
Now, having studied some statistics myself, it's been impressed upon me how easy it is to show correlation, and how difficult it is to show causality. The number above is a correlation, but without extensive research, saying that downloading is a cause is a blatant lie. It took statisticians 40 years to "prove" that smoking caused cancer.
Let's look at some other possible confounding variables:
Different numbers
Looking at some other figures, over the years 1999 - 2002, the actual dollar value only went down by 13.5%, so they were actually making MORE per item. Furthermore, of the 300 million drop in shipments from 1999 - 2002, 107.2 million (cassettes and cassette singles) were from a lack of cassette sales. I don't know about other people, but I don't think I've ever bought an audio cassette of my 13 years in Canada. It's really an obsolete technology, so is it really surprising that 1/3 of their losses are from drops in cassette sales? That's one thing they don't tell you on their press statements.
Economy
Now, the economy over the past couple of years have been horrible. The Dow Jones Industrial index went from a high of more than 11000 to around 9000 recently, a decline of 18%. There have been massive layoffs in many sectors, people have less disposable income, and entertainment is usually the first luxury to go.
Competition
There have been fierce competition from the movie industry for people's entertainment money. They have more advertising money (compare the amount of movie trailers to CD promos), they have more explosions, passion, sex, and even the DVD's come with more bang for the buck, with extra features and director's commentaries. Most CD's are still just plain CD's, although that has been slowly changing.
Let's read between the lines next time.