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 PC World newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?