Boring music as bad for CD sales as P2P

Don't blame file sharing alone for declining CD sales, analyst group warns record companies

Dinah Greek

Boring music, not file swapping alone, is causing falling sales of music CDs, according to research from NPD Group.

The analyst group warned record companies that unless they address this factor they will not reverse market decline.

Advertisement

The music industry has been waging a long-running series of legal battles against peer-to-peer sites, which it blames for the slump in music CD sales.

Last year, sales in the US fell by 13 per cent, and were down another nine per cent in the first quarter of 2003.

But the year-long study from NPD into the buying habits of internet users showed that, even though 60 per cent of music buyers had never downloaded free music, CD sales for this group had still declined by seven per cent.

NPD Group attributes more than half of the slump to free file-sharing activity on services like Kazaa and Morpheus, but it also said that a significant portion of the decline came from older music buyers.

This group, which is not generally associated with illegal file sharing or digital piracy of any kind, complained of a dearth of interesting new material.

"Our research shows that even if digital file sharing were to disappear tomorrow, the record labels and retailers would still need to overcome important underlying causes of recent market declines," said Russ Crupnick, NPD's vice president.

  • Have your say
  • Send to a friend
  • Print
  • Digg
  • Reddit
  • Share

Tags:

Do you agree?

Related whitepapers

Related jobs

Most watched

Summit video: Intel discusses processors designed for data overload (part one of two)

Intel explains how its Xeon processors can handle data-intensive apps

Summit: Intel discusses processors for data overload (part 2 of 2)

More thoughts on how servers can help manage overload

Analysis and Reports

Remote access - Three steps to getting connected

3.4 million UK professionals now work from home – is your company equipped?

Cost benefits of a global collaboration network

This white paper is a must read for organisations looking for evidence of the bottom-line benefits of high-definition video and voice communications

Poll

Impact of Information Overload poll

Impact of Information Overload poll

What is the biggest problem your firm faces as a result of the data explosion?

View poll results

Advertisement

White paper library

Keep up to date with the latest products, services and technologies from the world's leading IT companies; IThound.com brings you over 6,000 white papers, case studies and analyst reports.

Advertisement

Newsletter signup

Sign up for our range of FREE newsletters:

Existing User

Newsletter user login:

Enter email address to edit your newsletter preferences

Job of the week

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Hiring now on ComputingCareers:

Related IT jobs

Search thousands of IT jobs :

Search thousands of IT jobs:

Advanced search

Advertisement

Spotlight

deloitte

Summit interview: Deloitte discusses security implications of the data deluge

We chat to Mike Maddison, UK head of Security, Privacy...

ibm logo

IBM boosts mobile shopping with WebSphere Commerce

Update designed to give mobile users a richer, more personalised...

Summit: Intel discusses processors for data overload (part 2 of 2)

More thoughts on how servers can help manage overload

chrome logo

Google plans a Mac version of Chrome

A Mac-friendly version of the browser is in the pipeline

Primary Navigation