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"Consumer loyalty to the physical product still dominates and we are committed to providing the quality product listeners desire."
—--Hilary Rosen, RIAA
UNITS FALL, SHOULD RISE AGAIN AFTER BRIEF RESPITE
RIAA Numbers Show Decrease in Number of Units Shipped, Dollar Value
The Recording Industry Association of America announced today that the number of units shipped domestically and their corresponding dollar value fell in the first six months of 2001. Heh heh, we said units.

The number represents units shipped from record companies to retail outlets, music clubs and mail order.

According to figures released today by the RIAA, the dollar value of all music product shipments decreased 4.4% from $6.2 billion (mid-year 2000) to $5.9 billion (mid-year 2001). Unit shipments dropped 9.4% from 488.7 million last year to 442.7 million.

"Consumer loyalty to the physical product still dominates and we are committed to providing the quality product listeners desire," said RIAA Prez/CEO Hilary Rosen. "Our companies recognize the fact that more consumers are looking to get music online and are experimenting with a number of approaches, including legitimate subscription services. We are committed to delivering the music consumers love when they want it and how they want it. We are confident that our year-end numbers will be strong."

What do all those pretty numbers mean? Well, according to the information from Hilary and Co., they mean the following:
1) Even though CD units decreased—the pool water was awfully cold—CDs were still the preferred format, representing nearly 90% of all units shipped.
2) DVDs are growing in popularity, rising an impressive 115.9%.
3) Cassettes continued to decline, dropping nearly 42% from last year’s numbers.
4) Candy is dandy, but liquor is quicker.

The RIAA’s mid-year numbers are compiled quarterly by PricewaterhouseCoopers LLP and should be used for informational purposes only. Please, no wagering.

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