Tuesday, November 04, 2003

New study finds 1.4 Million households deleted music files 

A study by market research company The NPD Group found that 1.4 million households deleted digital music files from their PCs in August with credit going to the RIAA's recent anti-piracy campaign.

NPD credited the increase to the RIAA's efforts to thwart file-sharing through peer-to-peer networks but noted that consumers' opinions of the recording industry have been negatively affected by the litigious actions of the Association.

"While some in the music industry expected a large jump in digital file acquisition as the summer ended when students returned to school, the latest consumer information from NPD belies this expectation," said Russ Crupnick, vice president of The NPD Group in a prepared statement. "It’s apparent that the music industry’s strategy continues to work in the ongoing battle against illegal music file sharing; however, those same tactics also appear to negatively affect the perceptions of the recording industry among consumers."

With a push that seems to focus on file-sharing as the crux of the music industry's loss in revenues, the NPD also released information in June that attributes the problem to a decline in all music sales across all demographics.

"Without a doubt, file sharing has had a huge negative impact on music industry sales," Crupnick said. "But 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."



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