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CNET Study: Napster users buy more music

Jul 21, 2000, 05:49 (5 Talkback[s])
(Other stories by Evan Hansen)

"People who use Napster and other file-swapping networks to trade MP3 files are more likely to boost their music spending than those who don't use such services, according to a new study from Internet research firm Jupiter Communications."

"The study is the latest attempt to gauge the economic impact of file-swapping services such as Napster and, both of which stand accused of encouraging brazen Internet piracy and untold damages in lost CD and video sales."

"Earlier research, released by Soundscan in May, showed declining CD sales at stores near universities, which some have taken as evidence that Napster has already cut into music industry revenues, despite sales growth of 8 percent last year. The Recording Industry Association of America (RIAA) submitted the Soundscan study as evidence of economic harm in its recent lawsuit against Napster."

"Jupiter's report concludes the opposite, finding that Napster usage is a leading indication of increased music spending compared with other factors including age, income and gender."

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