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Study Links Napster To Decreased Music Purchase

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    NHNE News List Current Members: 386 Subscribe/unsubscribe/archive info at the bottom of this message. ... NEW STUDY LINKS NAPSTER, DECREASED MUSIC PURCHASE by
    Message 1 of 1 , Oct 31, 2000
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      NEW STUDY LINKS NAPSTER, DECREASED MUSIC PURCHASE
      by Peter Cohen, pcohen@...
      October 31, 2000

      http://www.maccentral.com/news/0010/31.napster.shtml

      Market research firm PC Data has announced the result of an ongoing study of
      the buying habits of music users with Internet access. The study suggests
      that there's a definite link between the usage of Napster-like file sharing
      services and music piracy. PC Data says that as users get more adept at
      using Napster, the less likely they are to buy music on CD.

      The information used for the study has been culled from PC Data Online's
      buying meter, which tracks the purchasing behavior of 120,000 US home
      Internet users. The study finds that new Napster users are just as likely to
      purchase music through online music retailer cdnow.com, but 90 days after
      downloading Napster, online audio CD purchases drop sharply, even though
      visits to online music retailers actually increases in frequency.

      PC Data CEO Ann Stephens says that Napster users are visiting online
      retailers to get information about music they're interested in, then use
      Napster to grab the files for free.

      "Portable MP3 players and recordable CD-ROMs are simply too easy and too
      cost efficient not to use," adds Stephens.

      PC Data says the problem is particularly prominent for music that appeals to
      a younger audience -- popular artists like Eminem, Three Doors Down and Limp
      Bizkit are hardest hit.

      A table offered by PC Data illustrates the phenomenon:

      Duration of Napster Usage | Visiting CDNow | Buying at CDNow

      Month Prior to Using Napster 10.4% 8.3%
      1st Month Using Napster 25.6% 8.4%
      2nd Month Using Napster 24.8% 8.9%
      3rd Month Using Napster 20.0% 5.7%
      4th Month Using Napster 18.5% 5.5%

      PC Data further suggests that the increasing number of Napster users is
      likely to add to the problem -- Napster's user base has more than doubled
      over the past six months to 18.7 million users, says PC Data. PC Data's
      analysis of Napster and Napster-like file sharing services continues; the
      company plans to analyze the actual dollar impact of such services in the
      future.

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