“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 Scour.net,
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.”