music piracy is killing the indonesian music industry

[P]enjualan musik legal dalam bentuk CD dan kaset terus menurun. Bila di tahun 1997 penjualan CD dan kaset legal berkisar sekitar 90 juta, pada 2008 angkanya anjlok hingga 11 juta saja. Bahkan, menurut data Asosiasi Industri Rekaman Indonesia (ASIRI), pada 2007 porsi penjualan musik ilegal mencapai 95.7 persen.

Anin Bakrie echoes my views about music piracy. Don't think music piracy affects the Indonesian music industry? Think again. In just ten years music sales have dropped 88%. That's really shocking, if you consider how much bigger the music industry is now and how many more consumers there are.

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Comments (7)

Dec 10, 2009
rima fauzi said...
See that's because of the greed of the labels. Here it's the same thing, which is why there are so many independent labels and artists going solo and making their own labels.
Through big labels, they will sell your CDs in stores for like 28-30 euros. But if you do all production yourself and sell it straight to distributors, cutting the 'middlemen' costs or at your concerts, you can sell CDs for 10 to 12 euros. Less than 50% of the big label prices.
Now, if one had to choose between buying a CD with a 30 euro tag and a 10 euro tag, they would most likely choose the 10 euro, or just download it for free.
The big labels are blood suckers and they dictate the market on what music 'should' be the trend. That's not fair and if this illegal music download is hurting them, I'm all for it.
Dec 10, 2009
boy avianto said...
I bet the statistic came from big labels. I shared Rima's sentiment, I am all for indies. There are a lot of musicians here abandon big labels and produce their own records. Not surprisingly, they are thriving while the big labels are suffering, which is great.
Dec 10, 2009
Brett McGuire said...
Fine sentiments, but the indie labels are being ripped off just as quickly. You guys don't actually think people distinguish between indie labels and RIAA type labels, do you?

The piracy rate is questionable, but it sure looks believable when you look at the drop in CD/cassette sales in the past decade. You would expect sales to remain static, but to drop by 90%? That is really serious. Also, have a think about how many music stores there are in Jakarta. In my neck of the woods - Pondok Indah - there are five - including a Christian one (which I don't count). In the closest thing I have to a home town in New Zealand there are eighteen. Population of my home town: 70,000. Population of Pondok Indah: anyone want to guess? 

Piracy is killing the industry. It is also killing the audience. There is no money in making music anymore. So the industry has looked for sponsorship in the worst possible place: the tobacco industry. The tobacco industry has jumped at the opportunity -- music is a great way to sell cigarettes. Now every single major Indonesian band is sponsored by a tobacco giant. 90% of Indonesian smokers are 18 or under. That's no coincidence. 

I totally agree, the big labels have themselves to blame for this, but they're not going to change. They had their chance 10 years ago. We have to change this for them.
Dec 11, 2009
boy avianto said...
People DO distinguish between indie labels and RIAA type labels. I hang out with those people, so I can tell you my first hand experience. That's one thing.

About the music stores, Indonesian are never big on that issue too, most prefer listening to the radio instead. Different culture, I guess. So comparing a city in NZ vs. Pondok Indah is not really presenting something, unless you want to assume that all people have the same tendency toward music stores.

About piracy is killing the music industry, I don't think so. It changes the industry for sure and I believe it's for the better. I will ask some of my musician friends here about their opinion, it's better listening directly from them than from the big shark labels.

Dec 11, 2009
Brett McGuire said...
The point I was making is that piracy does not discriminate -- all music gets pirated. Are you telling me that indie music isn't pirated? Come on...

The reason I drew the comparison to NZ was to point out that people obviously aren't buying music here in the same way that we do in, say, New Zealand. So what is the revenue source? The only major revenue source I can see is sponsorship, and the only sponsor I can see is the tobacco industry.

I am not justifying the music labels. All I am saying is that stealing is stealing. You can't justify it by saying that you're only stealing from the "label sharks".  

Dec 13, 2009
boy avianto said...
Seems we are approaching this from different direction ;). Of course all music got pirated, it will be naive to presume otherwise. But for indie music, their fans are supportive enough to make sure that the band still able to produce a good music without suffering economically.

This of course, a small scale economy compare to big labels economy. This is the 99c a song economy promoted by Apple with its iTunes. I believe the age of big label has come to an end, the grand scale economy of music industry is over.

But again, talking about Indonesia, your concern is well understandable. The indie fans are not big enough to support the band and Indonesia doesn't really have the access to 99c per song store. Then again, there are no actual viable solution to music piracy especially when digital copy are just a copy & paste away.

Dec 13, 2009
Brett McGuire said...
I think we are on the same side here :)

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A hyper-opinionated bule with a deep fondness for Indonesia. Mildly outraged but mostly harmless.

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