Steussy Blog

Found this on an NPR Marketplace Report. One of those nuggets of information that seems so correct and essential, but hides behind noisier chatter on news outlets.

CD sales are down, more than 20% below last year and looking to fall even faster, further decimating the music industry. TV viewership is down, hurting the network broadcasters. Newspaper circulation way down. Is it the Internet? Is it piracy? Not really. It's simply a lack of time to enjoy all the different forms of entertainment available to Americans in the early 21st century.

From Aaron Pressman's Businessweek blog:

Ironically, given all the complaining that the Motion Picture Association of America does about piracy, my entire "it's just that simple" thesis is spelled out in the back pages of very informative research report that the group issued on the state of the 2005 U.S. entertainment industry.

If you flip near the back to page 51, you'll see a table of how many hours a year the average consumer "spends" on various forms of commercial entertainment. In the four years from 2001 to 2005, overall time spent on these pursuits rose to 3,482 hours per person from 3,356 hours, about a 4% increase. But that didn't benefit all forms of entertainment equally. Here's a table I've created from the MPAA report showing the change in hours per person spent by activity:

Cable and satellite TV +125
Consumer Internet +52
Home video +29
Broadcast and satellite radio +26
Wireless content +15
Video games +12

Consumer books 0

Movies (at the theater) -1
Consumer magazines -3
Daily newspapers -14
Recorded music -50
Broadcast TV -65

You get the same picture when you look at the average dollars spent by entertainment consumers (from a chart on page 53). Overall spending per person rose to $890.77 a year from $675.35, a healthy 32% increase. Spending on television (cable, video on demand etc) plus home video (DVDs) soaked up more than half of the total increase. Throw in Internet spending and you've accounted for 90%. No surprise then that spending on newspapers and recorded music actually declined.