"The record industry's legal victory over Napster last year has neither stopped the trading of free music online nor halted a slide in music sales." I have always said the only reason for any slide in sales is the increase in the price. There is a very basic economic concept; And the price elasticity just snapped. [NYTIMES]
When CDs first came out they were very expensive, and this was mostly due to the high cost of manufacturing them. Until the CD became popular it was a high priced luxury item.
However in late 1989, once everyone and his dog had a CD player and manufacturing started to happen in the states, the cost of making a CD dropped dramatically. Well the cost to consumers should have droppped as well. In fact CD prices have continued to rise to an average price of $17.00! A CD, with its plastic jewel box, printed booklet and tray card now costs a major label about 80 cents each to make (or less) and a small independent label between $1.50 and $2.50. All of this clearly means that music CD's should now cost us less than their original prices over a decade ago, not more.
This high price is what is causing the drop in sales. Make music CDs list at 5 to 7 dollars and watch the music pirates start to drop off.
8:22:02 PM 
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