The Haus

Tuesday, May 18, 2004

RIAA Fibbing? -- 12:39 pm CST, Update by A.T. Hun

Someone did a little fact checking and found out that, gasp, the RIAA's sales figures may not be entirely be on the up-and-up! Soundscan reported a 10% increase in sales, while the RIAA whined of a 7% drop. How can both be true? Soundscan only counts actual units sold. The RIAA counts shipments. So while they sold more, they shipped less. The good folks at Ars Technica (from whence I got this link) add a few choice comments as well.

It seems that the RIAA has taken an accounting lesson from Enron, but in reverse. Instead of using accounting tricks to prop up a failing company, they are using accounting tricks to hide profits. I'm not in favor of people downloading stuff that they have no intention of buying. However, now that I read this, I have to wonder who the real crooks are.

The Master comments: Gosh, a business that is all about tearing as much profit from the customer as possible lying about their profits? I'm shocked.

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