>In the aggregate, we are unable to discover any direct relationship between P2P file-sharing and CD purchases in Canada... That is, we find no direct evidence to suggest that the net effect of P2P file-sharing on CD purchasing is either positive or negative for Canada as a whole.
>However, our analysis of the Canadian P2P file-sharing subpopulation suggests that there is a strong positive relationship between P2P file-sharing and CD purchasing. That is, among Canadians actually engaged in it, P2P file-sharing increases CD purchasing.
So they concluded that file sharing has no overall impact which is a ridiculous conclusion because it seems blindingly obvious that file sharing is hurting CD sales. They concluded that among those that engage in file sharing, those that file share more are likely to buy more music, which makes sense because the most active file sharers are probably the biggest fans of music.
The article doesn't mention legal downloads which might skew the results even further in favour of filesharing and will to some extent explain why CD sales are falling.
Another reason why I think CD sales are falling is because the music that the present day record industry puts most of its effort into promoting is of a lower quality than it used to be. I think things like Napster spooked the industry, it reacted incorrectly and it became extremely profit orientated to the point that it actually became detrimental to profits.
Maybe because they're not a preferred format anymore and are antiquated? Seriously, I hate CDs. They're bulky, not "high density" enough anymore (one CD holds only 72min of music) and I need to spend 10 min on ripping and encoding them to make them usable in my preferred player (iPod). When is the last time you've seen someone carrying a portable CD player? I think that says it all.
Record industry is peddling accessories for buggies and everyone's driving cars now.
