With shipments down another 18%, labels sue music promotion website

Last week the RIAA was cheering the destruction of million CD and DVD taken from flea market vendors and church swap meets across the country. This week it put out the numbers of CD’s shipped from its client record labels to music stores and they arent good. The ailing music industry shipped 17.5% fewer CD’s to record stores in ’07 than it did in ’06. Of course, much of what was shipped to the stores is still sitting in discount bins so the actual sales decline is surely much worse. Across all physical formats, CD singles (up 50%),  Cassettes (down 41%), LP’s (up 36%) etc… shipments were down 16.9% Y/Y.

Playlist.com sued by label ludditesDespite this news, record labels still seem intent are keen on destroying any company, site or individual foolish enough to build a service that makes online music discovery and playback simple and painless. The four major labels, though nine of their subsidiary companies, have filed suit against Project Playlist, a site that aggregates music from around the web into one simple interface. According to the label’s, Playlist.com enables “massive copyright infringement” by pointing to files on other websites (ie blogs, artist pages, fan pages etc…). Despite common sense and the generally accepted business maxim that your customer can not be your enemy, the luddites at the major labels seem to relish finding novel ways to destroy shareholder value and drive customers away.

I’m not the sharpest tack in the marble box but if I wwas an exec in a failing $10 billion industry that had shrunk by more then $2 billion in the last year with shipments down 19%, the last thing I’d do is sue a company that lets my customers discover and buy my product. Call me crazy.

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