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NEWS
[ Wednesday, Jan. 14, 2004 ]

Holidays, file-sharing lawsuits bring money to music retailers

Collegian Staff Writer

Local music retailers may have benefited from the 2003 holiday season as well as the recent slew of Recording Industry Association of America (RIAA) lawsuits against file-sharing users.

According to a phone survey conducted by Pew Internet and American Life Project, the number of illegal file-sharers dropped from 29 percent between March and May 2003 to 14 percent between November and December 2003. Data from comScore Media Metrix noted a 15 percent decrease in Kazaa usage from November 2002 to November 2003.

Mike Negra, former owner of Mike's Music downtown, which was located at 226 W. College Ave., had to close the State College location last spring due to slumping sales. Negra is also the current owner of Mike's Music and Video, 1613 N. Atherton St., and he believes the decline in illegal file sharing is a good sign for the future.

He noted a 25 percent sale increase this December over previous months -- caused only in part by holiday sales.

"Since consolidation in May we haven't had a number like that," Negra said. "The RIAA needs to continue providing value for their product ... an extra DVD, a poster, whatever it is."

Negra said he believes recent RIAA lawsuits have changed public attitudes toward downloading, making people understand the ramifications of their actions. But he said he feels the lure of downloading has left the collegiate level the least compared with other demographics.

"One person can sit in a dorm room and say 'this isn't going to hurt anyone.' When 40,000 students all do it, Mike's is down one store, City Lights is hanging on and [students] walk out of their dorm rooms and go 'where have all the record stores gone?' " Negra said.

From 1999 to 2003, Negra said his sales have dipped 70 percent, a loss totaling about $2 million.

"In 1997, the new Dave Matthews album came out for 'Monday Night Madness.' We were the top seller of that Dave Matthews album in the county on Monday Night ... at 500 units. Now ... if we were to sell five units of an album at midnight, that's a big night," Negra said.

Greg Gabbard, owner of City Lights Records, 316 E. College Ave., said that since the days of file sharing and burning CDs began, business has been down 40 percent.

"It makes you very careful when you're ordering things ... in terms of quantity and who. When a new album comes out, you're more likely to order 25 and say 'let's see how it goes,' than say 'let's buy 50 of that.' "

Gabbard is not sure if sales have seen a marked increase in the holiday season, but feels that sales are up overall.

"It's a little too early to tell ... some of the information might come from asking. How many people would want to say [they download]?" Gabbard said.

A Webspins report contrasted the Pew Internet and American Life Project's and comScore's results, saying that file sharing actually increased 5 percent over the holidays.

Brian Newhard, president of the Penn State Computer Network Club, said illegal file sharing will continue for those knowledgeable with computers by using "darknet" alternatives, such as Internet Relay Chat.

"For people who have the knowledge of computers, if they want to get an illegal copy of whatever, it's out there and it's accessible," Newhard said. "You need to change people and not change the technology... If they don't care about copyright laws, they'll break them."

Newhard began purchasing songs online in order to avoid paying $13 to $15 for a CD and to avoid possible consequences incited by illegal file sharing.

"Since [Apple] iTunes came out, I don't think I've purchased a CD," Newhard said.

Negra said he is not concerned with legal digital downloading methods.

"I'm not concerned with 99 cent songs. If I'm competing with something that's pre-pay, that's no problem. If I'm competing with something that's for free, that's a problem," Negra said.


PHOTO: Patrick Sopko
PHOTO: Patrick Sopko
Kent Lanis buys a CD from Mike's Music and Video, 1613 N. Atherton St.
 

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Updated: Wednesday, January 14, 2004  10:46:59 AM  -4
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Created: Wednesday, May 07, 2008  6:44:27 PM  -4