The International Federation of the

digital file format diminishes. Meanwhile,

Phonographic Industry, though clearly

public opinion research shows a market

opposed to P2P file sharing, has acknowl 

for such services exists in Canada, with

edged that total music consumption,

56% of downloaders saying they would

including music sales and downloading,

prefer to download music from a legitimate

grew 30% between 1997 and 2002 in

online music downloading service than

five major world markets, including

purchase a CD from a record store.

37

Canada. Though many in the industry hope

this will translate into demand for com 

Some believe, however, that pay 

mercial downloading services, so far this

per download services will remain mar 

has primarily been led by the United

ginal until the rate of free file sharing

States. Between late 2002 and 2003, the

declines. Though file sharing from sites

percentage of U.S. downloaders 12 and

like Kazaa seems to be no longer at its

up who paid to download tracks almost

peak particularly in the United States

tripled, from 8% to 22%, while in Canada,

where casual downloaders have retreated

only 15% of downloaders had purchased

from the threat of lawsuits by the Recording

a music file by early 2004.

Industry Association of America the 

latest figures show file sharing to be on

Canada's pay per download industry, 

the rise in Canada. One survey in spring

for that matter, is still in its infancy. By

2004 found that half of Canadians age 12

mid 2004, three players had established

to 19 said they downloaded a music file

themselves in the Canadian market 

in the past month lower than the peak

Puretracks.com, Archambaultzik.com, and

of 60% in spring 2003, but higher than

American owned Napster. Each service

the 40% who shared files at least once a

provides approximately 300,000 songs to

month near the end of 2003.

38

consumers, compared with iTunes' more

than 700,000 tracks in the United States.

Major and independent music labels, how 

ever, continue to sign with these services

at a rapid rate as industry resistance to the

21