File Sharing over the Internet Drops by 50% since Napster Boom

The latest research released by Jupiter MMXI shows that the active file sharing population in Europe has decreased by almost half since legal proceedings were brought against Napster.

Although the popular music file swapping service has been operating a restricted service since July of this year, Napster remains the most popular music destination in Europe. This demonstrates the strength of the Napster brand and the demand for the return of such a comprehensive service. Over four and a half million people across Europe regularly swap files across the Internet, and Jupiter MMXI's Internet audience research shows that although a host of Napster clones have appeared to fill the void left by Napster, none have proven to be as successful

Despite widespread fears that post Napster or second-generation music swapping services provided a much wider threat to the music industry, the reality has proved to be very different. In fact the size of the European Peer-to-Peer market in August of this year (without Napster) is almost half the size it was back in February (with Napster).

As well as the overall drop in people utilising Peer-to-Peer services, file sharing as a whole has become a fragmented market. In February of this year 12 Peer to Peer services shared a combined audience reach of 16% in Europe, compared to August 2001 where 17 sites shared a diminished audience reach of 7.6%.

Mark Mulligan, Jupiter MMXI analyst and author of the report says, "The strength of Napster is testament to the popularity of sharing music over the InternMRS Conference 2002 Info & Registrationo to the fact that consumers expect music to be free on the web. The latest generation of Napster clones presents the record industry with the challenge of a fragmented, grey marMRS Conference 2002 Info & Registrationes less of a threat than the original Napster phenomenon. The record industry cannot afford for paid music subscriptions and a la carte services to become premium products for a niche audience of the online population. If the soon to be released online offerings of major record labels hope to convert a significant share of existing file swappers into paying customers they will have to offer much of what the grey market already has, and more."

All articles 2006-22 written and edited by Mel Crowther and/or Nick Thomas unless otherwise stated.