Nielsen Rating System At Odds With RIAA's Claim Of "Lost Sales"

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When speaking this month to a representative from Soundscan, the company that provides much of the data for the Billboard Top 200 Chart, I learned things that would contradict reported statements by the RIAA. Mainly that US labels have had a significant reduction in sales over the past three years. Cary Sherman, president of the RIAA, responded personally, put his rebuttals on the record and in the process exposed intriguing insight into the way the RIAA calculates "losses."

Soundscan is a service owned by Nielsen, the company that computes TV ratings. Soundscan uses the barcodes on CDs to register sales at record stores. The correlated data contributes to the Billboard chart listings, as well as much of the market research that record companies use to determine which artists are worth keeping under contract.

My original reason for speaking to Soundscan was to determine if the "free" barcode many CD Replicators provide with a substantial order is a real added value to the indie artist, or just a bogus premium that sounds more intriguing than it really is. Replicators claim that with the barcode they give one can track indie sales on Soundscan. I have my doubts. more..

(found via bOiNg bOiNg)