Disc Sales Hurt by Music Downloads
Source: Associated Press
By DAVID BAUDER, Associated Press Writer
NEW YORK--The music industry has some fresh ammunition in its effort to prove that Internet swapping of free music files has cut into music sales.
A study released Wednesday showed that sales of recorded music near college campuses declined by 4 percent between the first three months of 1998 and the same period this year. Sales at all stores went up 12 percent during the same time.
"The findings come as no surprise and confirm our worst fears," said Amy Weiss, spokeswoman for the Recording Industry Association of America. "This demonstrates the importance of protecting artists' rights on the Internet."
Dozens of colleges have banned the use of Napster, the leading service that allows people to download music files for free from the Internet, after heavy use clogged their computer systems.
The RIAA and the rock band Metallica have both sued Napster, alleging the company's software allows computer users to trade copyrighted music online without permission.
The study was commissioned by Reciprocal Inc., a digital rights management company, and uses figures from Soundscan, the company that measures music purchases. It is the most extensive attempt to try to document whether downloading affects sales.
"I think it's clear that it has had an impact," said Michael Fine, Soundscan's chief executive. He said it's hard to quantify how much potential revenue music companies may have lost because of downloading.
Representatives from Napster and Scour.net, another company that locates audio files on the Web, had no immediate comment on the study.
Other factors may have cut into music sales near college campuses, including the growing popularity of devices that make CD copies, Fine said. The music business has been dominated in the past two years by Britney Spears, the Backstreet Boys and 'N Sync, artists who appeal to a younger audience.
Yet Reciprocal found that the sales decline was even steeper -more than 7 percent -when it studied outlets within five miles of the 67 colleges that had banned Napster by late February.
Sales at stores near colleges jumped by 12 percent between 1997 and 1998, before beginning a slide that coincided with the booming popularity of Napster, Reciprocal said.
On the Net:
Reciprocal: http://www.reciprocal.com
Recording Industry Association of America: http://www.riaa.org
Napster: http://www.napster.com
