Jupiter: Napster Users Are Big CD Buyers, Too

The study shows use of the popular but controversial MP3 music-swapping service Napster Inc. to be an indicator of increasing sales, said Aram Sinnreich, an analyst with Jupiter. "Screening for Napster users in general, they were 45 percent more likely to increase their music purchases than non-Napster using music fans," he said. "It behooves the recording industry to stop litigating immediately. If they just turn a blind eye, they would increase their sales."

The Recording Industry Artists Association (RIAA) launched a series of lawsuits against companies distributing MP3-format music online, including Napster, alleging the service amounts to the promotion of copyright infringement and that it hurts music sales.

The RIAA has also sued MP3.com Inc. and most recently the search engine and file-sharing program site Scour Inc. for copyright infringement.

RIAA lawyers have cited studies showing a slow-down in sales around college campuses due to Napster. For example, market research firm VNU Entertainment Marketing Solutions, unit of SoundScan, showed that retail store album sales within five miles of college campuses dropped 4 percent in the last two years. But Sinnreich said he disagrees with RIAA's conclusions from the study, because of movement toward online sales.

"That is the central problem with the Soundscan study -- it ignored online music purchases," he said, noting that the RIAA did not clarify that the most attrition took place before Napster's launch.

The music industry should "partner with a company. They should actively license their archives to third-party digital music service providers and actively market and promote the resulting services." If they do, they should increase their music sales exponentially.

A Jupiter spokeswoman said the study had not been commissioned by either Napster or the RIAA. The study was timed for release before Jupiter's Plug.In conference, to be held Monday and Tuesday in New York. The conference, sponsored partly by Internet music companies, will feature Richard Parsons, the president of Time Warner Inc, Rob Glaser, chairman and chief executive officer of Real Networks Inc.; and rap artist Mike D of the recording group Beastie Boys.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?