How Does File-Sharing Affect the Music Industry?
The Canadian Record Industry Association (CRIA) claims revenue losses of approximately $100 million annually due to file-sharing. Since 1998, retail sales of CD and cassette recordings in Canada have decreased by almost 30%. In the US, the Recording Industry Association of America (RIAA) blames file-sharing for a decrease in CD sales from $13.2 billion in 2000 to $11.2 billion in 2003. However, some have questioned the assumption that file-sharing is responsible for reduced sales, or at least for the extent of the decline in sales, noting that the industry downturn could be a result also of a reduced number of albums released, increased competition from other forms of entertainment (e.g., DVDs), and/or a general economic downturn, affecting other industries as well. A 2005 survey of 600 UK music fans, reported in the Guardian Online, (July 27, 2005) found that those who illegally share tracks over the internet also spend four and a half times as much on digital music as those who do no
