Some observers believe the compact disc,

The Downloading

the dominant sound carrier format since

Phenomenon

the late 1980s, is simply past its prime,

following a wave of strong sales in the

While certainly not the only factor in the

1990s as consumers replaced their older

drop in music sales, widespread down 

formats in their music collections. In

loading of free digital files, MP3s in par 

Canada, CD unit sales have fallen steadily

ticular, has received the most attention.

in the past five years, from 71.9 million in

Though file sharing on peer to peer (P2P)

1999 to 53.1 million in 2003. Other formats

networks such as Kazaa and Grokster 

have not fared much better; except for a

is considered to have peaked in 2003, the

brief jump largely due to the Canadian Idol

International Federation of the Phono 

and Star Academie franchises, singles

graphic Industry (IFPI) estimated the num 

sales are still marginal, while the cassette

ber of copyrighted music files on P2P

format could soon disappear entirely at

networks worldwide in early 2004 at 

its current rate of decline. The only format

800 million, with another 100 million on

to show signs of growth is the music

Web and FTP (file transfer protocol) sites.

11

video DVD, which saw sales grow 150%

from 2002 to 2003, the highest increase

Canada, with one of the highest rates of

among the top ten music markets in the

Internet penetration in the world, has

world.

experienced its fair share of downloading.

9

However, with total unit sales of

four million in Canada, the music DVD's

Recent studies suggest that 32% of adult

impact remains limited.

Internet users in Canada have downloaded

a music file at least once,

12

with rates of

Besides the decline of the CD and compe 

downloading in Canada estimated to be

tition for retail shelf space from other

as high as 180 million tracks per month.

13

sources of entertainment, other potential

factors in the fall of music sales range

32% of adult Internet users in

from the cost of music to a sense of dimin 

Canada have downloaded a music

ishing star power in the charts. For exam 

file at least once.

y

ple, the top ten albums in 1999 totalled

5.9 million units, compared with 3.4 million

In the United States, the Recording Industry

units in 2003.

10

For many in the industry,

Association of America's response to the

however, the biggest challenge is the

downloading phenomenon has been to sue

Internet.

individual computer users offering large

6