From the New York Times: "Disputing the position held by the major record companies, a report issued on Friday found that people who use file-sharing networks to obtain music at no charge over the Internet are more likely to have increased their spending on music than are average online music fans.

"The report, from Jupiter Research, a market and consumer research firm, also found that people who use high-speed Internet access and CD burners to make homemade compact discs — a practice that has been criticized by the record industry as abetting piracy — are as likely to increase their spending on music as to decrease it...

"Last month, the International Federation of the Phonographic Industry, an international record industry trade group, reported that revenue from global music sales fell 5 percent in 2001, to $33.7 billion. Jay Berman, the chief executive of the group, asserted that one of the major reasons for the decline was 'the fact that the commercial value of music is being widely devalued by mass copying and piracy,' but the group did not offer a specific analysis of the phenomenon, or its impact.

"The Recording Industry Association of America, the United States arm of the international federation, argues, however, that its own research backs up the claim..."

Read this entire piece in the New York Times here. Another take on this story is available in the Nando Times here.

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... Webcasters have gone to great effort to separate themselves from the file-sharing services, and to clarify that Internet radio is not the delivery of a "perfect digital copy." (Not that most online file-trading isn't either, but that's another issue.) Furthermore, Internet radio has stood by the idea that it sympathizes with artists. Thus, for us to pick up this story and run with it may be perceived as to suddenly have become apologists for file-sharers. Nonetheless, what we may be seeing here is the promotional power of online file-sharing. It's another piece of evidence that consumers download MP3-quality song files not as a substitution for music purchases, but as a "sampler" that helps them find the music they want to buy. If file sharing does in fact have promotional power, that would help explain why record sales were up during the height of Napster use, but down since the record industry sued the file-trader into irrelevance. And of course it seems probable that Internet radio is even a far MORE powerful promotional tool than file sharing, given the facts that (A) it does a much better job of "pushing" new songs and artists to consumers, (B) consumers don't have any copy of the song on their computer, and (C) the medium features prominent and convenient "Buy it now" links. When consumers get exposed to music that's "new" to them (including from genres beyond the few narrow formats generally available on major broadcast outlets), the scope of the music they might be interested in purchasing is blown wide open. -- KH and PM ...

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Internet radio's "Day of Silence" inspired many 'Net radio fans from outside the industry -- typically not RAIN's readership -- to take the time and share their thoughts with us.

Here's a small sampling that shows many Internet radio listeners "get it," and are looking for ways to help save the industry. And there's more, as the message boards at Save Internet Radio.org saw a marked increase in activity.

"I have actually purchased more CDs..."

"Make my voice heard..."

"This perfect copy BS..."

"Exciting new retail channel..."