Fact sheet - Facts on File-sharing
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The overwhelming majority of reputable, peer-reviewed, independent research shows that illegal file-sharing has been a key factor in the recording industry's 25% global decline over 1999-2004.
Below is a comprehensive list of the third party research conducted into the question of whether illegal file-sharing stimulates or depresses music sales (2003-2004). The vast majority of this research confirms that the substitutional effect of illegal file-sharing substantially outweighs any promotional effect.
Forrester Research - Europe, Aug 2004
'Europeans Love Online Music - As Long As It's Free'. More than one in three (36%) music downloaders say they buy fewer CDs because they can download music for free, according to the latest Forrester research. Only 10% say they are buying more. The number of downloaders is therefore three times the number of 'samplers', making the negative effect on sales larger than the positive effect, by three to one.
Pollara - Canada, July 2004
28% of consumers who spent less on music in the previous 12 months said downloading, file-sharing and burning were the main reasons for reduced buying.
TNS Research - UK, March 2004
Over 2003, music downloaders' spend on singles and albums declined by 59% and 32% and their overall spending on music declined by one third - amongst heavy downloaders this figure increased to almost half. Young people also download more and buy less.
If extrapolated, this conservatively means there are 7.4 million illegal downloaders in the UK resulting in lost sales of £274m per annum.
Oberholzer & Strumph- US, March 2004
Known as the "Harvard Study", this study mistakenly concluded that filesharing's effect on music sales is "statistically indistinguishable from zero". The oft-quoted report was subsequently rubbished in its peer review, which concluded that the research "could at best be taken to be inconclusive".
http://www.unc.edu/~cigar/papers/FileSharing_March2004.pdf
Entertainment Media Research - UK, June 2004
Heavy music buyers are also heavy filesharers. In other words, filesharing threatens the music business' biggest customers.
www.entertainmentmediaresearch.com
Informa - US, September 2003
Filesharing has led / will lead to $2.4 billion in lost US sales in 2003. This would equate to almost 75% of industry losses.
Forrester - US, August 2003
$700m in US sales were being lost due to file-sharing This translates into 6% of the US' market value, and 64% of market reduction in the US.
Jupiter Research - US, August 2003
One third of active file-sharers said that they had decreased spending on music since they started file-sharing, while only 16% said spending had increased.
Edison Media Research - US, May 2003
The heaviest US downloaders have the largest negative influence on sales. Among those who had downloaded more than 100 files, (roughly 16% of respondents), CD purchases fell by 61% in one year. Heavy downloaders purchased an average of 28.9 CDs a year versus the current average of 11.3 CDs.
Enders Analysis - Europe, March 2003
Enders' report, 'Piracy - Will it kill the music industry?' concluded that "digital piracy cost about 35-40% of the reduction in the size of the global music market last year".
Forrester Research - Europe, January 2003
The 'WholeView Technographics' report concludes that 40% of frequent downloaders buy less music now than they did before they began downloading. This damage is not compensated for by the 2% of people who say that they bought more after having downloaded.