The year 1999 became the reigning year of Napster as communities of music producers and listeners were introduced to Internet peer-to-peer file sharing. The historical growth of Napster users soon troubled the record industry. Numerous record labels quickly filed suits claiming Napster file sharing violates the copyright laws of their intellectual property. After an extensive legal battle the ninth U.S. Circuit Court of Appeals ruled in favor of the record companies. The termination of Napster incited the production of a seemingly endless list of alternatives. These new generations of file sharing networks are not quite clones of the pioneering Napster. Their structural modifications removed the necessity of a central database. Certain applications do not even require users to log in using a screen name or any other identifying information. Since such altered characteristics decelerates the industry’s depletion of free peer-to-peer music networks the RIAA is in pursuit of any opportunity to slander them. One of the most common accusations is that file sharing is resulting in a decline of CD sales. The industry’s allegations that file sharing weakens CD sales

It seems the RIAA’s theory that downloading music discourages real CD sales does not appear to be valid. Careful analysis of statistics, including minutely publicized factors, indicates the opposite of what the RIAA has continuously attempted to persuade. Perhaps the most difficult aspect of file sharing for the record industry to comprehend is the reasons and benefits of its use. File sharing provides consumers with an improved radio alternative. Peer-to-peer networks feed the demand of new material and proves to increase sales as the preferred music format remains to be the CD. As a result, record companies are making more money for each release than ever before even though the amount of units is declining. Additionally, “there is no reason to trust those who have cried wolf in the past about new technology” like cassettes and videos, “especially when history has shown that advances in technology increase consumer spending” (Snyder and Snyder). Simply put, the more music that is downloaded and shared, the more music is sold rather than lost.

File sharing continues the demand for CD’s as the music market confronts declining unit sales. One particular survey conducted by Josh Bernoff of Forrester Research categorizes individuals by downloading frequency to analyze their purchasing habits. For the purposes of Bernoff’s survey, individuals who don’t use Internet services are the “Offline” group; those who do not use downloading services are the “Nonusers”. Those who have tried such services but engage infrequently are known as “Dabblers”. “Music Learners” are those that usually either downloads, rips or burns 3 to 8 times a month. Highest on the scale are the “Music Lovers” which downloads, rips, or burns over 9 times a month. The lower end of the usage spectrum, which constitutes the “Offline” and “Nonusers” make up about 54 percent of the population and only buy about 39 percent of CD’s. A combination of all others that do download and burn music make up 46 percent of the population yet buy 61 percent of CD’s. Of this grouping, the “Lovers” and “Learners” make up only 22 percent of the surveyed population while buying 36 percent of all CD’s. More specifically, The “Lovers” alone make up about 5 percent of the population and buy about three times (15 percent) the amount of CD’s. Calculations using the RIAA’s figures of units shipped in 2001 and the amount of people over the age of nine results in an annual average of 2.7 CD’s per person for “Offline” and “Nonusers”, 4.9 CD’s per person f

Some topics in this essay:
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