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Subject:Edupage, April 26, 2002

*****************************************************
Edupage is a service of EDUCAUSE, a nonprofit association
whose mission is to advance higher education by promoting
the intelligent use of information technology.
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FILE SWAPPERS MIGHT MAKE GOOD CUSTOMERS
In a new report from Jupiter Media Metrix, analyst Aram Sinnreich
argues that online music sharing is not necessarily bad for the
recording industry and, in some cases, can benefit record producers.
Based on a survey of online music listeners, the report explains 
that although some file-swappers are less likely to buy music, a 
larger number of swappers increased their music spending. Sinn-
reich agreed that for some users, new technologies led to less 
music spending, but he argued that on the whole, new technologies 
cannot be seen as all bad for the music industry.

Newsbytes, 25 April 2002
http://www.newsbytes.com/news/02/176141.html

In his report, Sinnreich writes that CD-writable drives and broadband access 
both are "unambiguously bad for music sales." However, the picture is compli-
cated if music fans use two or more of the digital music technologies in tandem.
Again, used in combination, new technologies tug different music listeners in 
different directions. But on balance, the affect is positive, the report says. 

For example, Sinnreich writes, while music fans with all three technologies 
were 95 percent more likely to increase spending than the average music fan, 
they were also 65 percent more likely to decrease spending. 

Meanwhile, though file-sharers were 41 percent more likely to increase spending 
than the average music fan, statistically they were only 21 percent more likely 
to decrease spending. 

"The combination of these two technologies is unambiguously good for music sales. 
For most technologies that caused both increases and decreases in spending, the 
good outweighed the bad," the report states. 

Nonetheless, sales were down in 2001 from 2000, and if digital music is not the 
culprit, what is? The report addresses that question, and in it Sinnreich points 
to many culprits, some of which have nothing to do with digital technologies. 

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