NEW YORK (AP) - Sales of recorded music near college campuses declined over
the past two years while rising elsewhere, according to a study the music
industry believes shows the corrosive impact of people downloading music for
free. Music sales during the first three months of 2000 were up 12% over the
first quarter of 1998. Yet at stores located within five miles of a college
campuses, which account for roughly half of all albums bought, sales went
down 4% over the same period, according to a study released Wednesday. It
was commissioned by Reciprocal, a digital rights management company. 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. 

Reciprocal's study used figures from SoundScan, the company that measures
music purchases, and is the most extensive attempt to try and 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
business has been dominated in the past two years by Britney Spears, the
Backstreet Boys and 'N Sync, who appeal to a younger audience.

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