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Downloading Music does not harm record sales?

According to research conducted by Felix Oberholzer-Gee (Harvard Business School Massachusetts) and Koleman Strumpf (University of North Carolina) Internet music piracy is not responsible for declining CD sales, In a major new statistical study they tracked millions of music files downloaded through the OpenNap file-trading network and compared them with CD sales of the same music/albums.

The music industry frequently claims that illegal file-trading and downloading of music is responsible for reducing CD album sales. The industry says this argument is the reason for their legal campaign of suing individual file sharing services over the past year.

The researchers conclude: "At most, file sharing can explain a tiny fraction of this decline."

In total 680 albums from a range of musical genres were tracked and followed over a period of over 17 weeks in the second half of 2002. A computer program monitored the downloaded songs and compared this to changes in album sales over the same period to see if a link could be established.
The songs that were downloaded most showed no decrease in CD sales as a result of increasing downloads. Interestingly enough albums that sold more than 600,000 copies during this period appeared to sell better when downloaded more. For these albums every 150 downloads corresponded to another album being sold. The study showed just a slight decline in sales as a result of online sharing for the least popular music.

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