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THe bottom line is CD sales are down because new technology allows people to easily get the same music for free, without leaving the comfort of their home - and until recently, without legal reprecussions.
Now that the RIAA is taking an active stance and throwing out big question marks as to who is on their IP-subpenoa hit list, I bet you see a lot less people sharing their music.
I think people like sampling music and having instant access to large collections of music more than they like breaking the law....
Apples music store is a good example that people are still very willing to pay for music, they just want to have a good selection and be able to get it on-demand & without having to by a $18 CD that is 90% crap.
In fact I think Walmart and a bunch of other major corporations are getting into the online music business as well.
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