Record Sales in U.S. Take Tumble in 2001

Sales of recorded music and music videos in the U.S. plunged 4.1% to $13.7 billion last year, according to figures from the Recording Industry of America.

The data confirm earlier statistics showing the music industry has fallen into the worst sales slump in at least a decade. Record executives say they are being crushed by a combination of spiraling marketing and radio promotion costs, online piracy and economic sluggishness.

RIAA officials also said shipments of music products plummeted 10.3% in 2001, compared with a decline of 7% a year earlier.

The trade organization’s statistics are based on record-label shipments of 968.6 million compact discs, cassettes, vinyl recordings and music videos, down from 1.08 billion last year. The data measure products shipped to retailers--not actually sold to customers--and distributed through record clubs and mail-order catalogs.

RIAA officials cited online piracy and CD-burning as a major factor in the dropoff. Recent RIAA surveys of music fans 12 to 54 years old found that 23% said they didn’t buy more music last year because they downloaded or copied most of their music for free.

In addition, 50% of those who have downloaded music for free said they had made copies of it, up from 13% two years ago, the RIAA said.

“We cannot ignore the impact on the marketplace,” said Hilary Rosen, the RIAA’s chief executive.