Used CD Trade Hurts Lesser-Known Artists

The irony in the controversy over the sale of used CDs (“Compact Disc War Headed for the Court,” Calendar, July 31) is that the real victims in this situation are not the retailers or distributors, but the artistic community that serves as the creative backbone for both industries.

At the core of this controversy is one overlooked fact: The only thing that gives a CD value at all is the intrinsic artistic creation contained therein. A burgeoning market for used and promo CDs means that the people who create that value--songwriters, recording artists, producers and others--are being cheated out of the royalties they depend upon to earn a living.

It has been estimated that an unchecked used CD market could grow to as much as 20% of unit volume in the next five years. That means a major loss of income to the majority of those in our artistic community, many of whom are already living perilously close to the edge of financial ruin.

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What we need to understand is that it’s not going to be million-selling artists who are hurt most by this practice. After all, used CD bins do not overflow with promo copies of U2’s “Zooropa” or Janet Jackson’s “janet.” The musicians who are being damaged are the lesser-known and cutting-edge artists, whose sales are disproportionately offset by the used and promotional CD market.

Jazz, classical and other genres outside the pop mainstream will also be particularly affected by used CD sales, since these artists rely heavily on catalogue sales for their survival. A growing used CD market will dig deeply into catalogue sales, as consumers who get turned on to an already established artist will inevitably seek out used copies of his or her earlier recordings.

While retailers repeatedly reap profits from the sale of used and promo product, no one from the creative side gets a nickel from these transactions. And the resulting loss in sales means fewer artists will manage to even recoup recording costs, causing labels to take fewer chances on unproven music forms.

What’s more, those losses will be passed back to consumers through higher prices, further exacerbating the situation.

The Recording Academy is committed to ensuring that America’s cultural future remains bright for coming generations, and this requires that the rights of the artists and technicians who together create this country’s musical legacy be protected.

Garth Brooks and Bonnie Raitt have already made strong statements on this issue, and other recording artists are lining up to stand alongside them in active opposition to the proliferation of the used CD trade.

The greed of retailers must not be allowed to run rampant at the expense of our artists, songwriters, musicians and recording community.