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Summary:

Surprise: The Internet hasn’t destroyed the entertainment industry. The business of making money with music, movies, video games and books has grown by 50 percent in the last decade, according to a new study. Check out some highlights of the study in this infographic.

skyisrising logo

Is piracy really destroying the entertainment industry? Techdirt blogger Mike Masnick doesn’t think so, and he has some numbers to prove it. Masnick and his Floor64 colleague Michael Ho released a report titled “The Sky Is Rising” at the Midem music industry convention in Cannes Monday that shows how the global entertainment industry actually grew by 50 percent in the last decate, despite Napster, BitTorrent & Co.

The report was commissioned by the Computer & Communications Industry Association, which counts companies like Google and Facebook as its members. It’s definitely worth a read (check out the full PDF) and will likely provoke discussion, especially in light of the entertainment industry’s ongoing push for tougher copyright laws. For a CliffsNotes-like version, check out the following infographic:

  1. The music industry stats are completely misleading. Picking the 2005 business valuation and comparing it to the 2010 valuation shows only two data points. If I am allowed to pick only two data points on a fluctuating graph, I can prove whatever I want. For instance, if they had included the music industry valuation for the year 2000, you would then see the tremendous drop in valuation between 2000 and 2005.

    Or if they had compared the 2000 valuation to the 2010 valuation, you would see how far music revenue had dropped.

    It’s completely disingenuous to not show the entire graph. Worthless.

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    1. The choice to use 2005 and 2010 data was not made to mislead, but to provide the most consistent data points from the IFPI’s annual Recording Industry in Numbers reports. Before 2005, the IFPI used different methodology to come up with their value for the global music industry. If the numbers from 2000-2001 were used, the figures would show EVEN MORE growth (but misleadingly since the figures from those years didn’t include revenues from all the same categories as the figures from 2005-2010).

      According to the IFPI, the global music industry was valued at $36.9 billion in 2000. (Far less than the IFPI’s $168 billion figure for 2010!)
      http://www.ifpi.org/content/section_news/20010419.html

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