Napster's gone but file-sharing still soars

By Larry Dignan

The digital distribution of music through services such as Morpheus and Kazaa will continue to thrive with use peaking in 2005, according to a report released Wednesday.

The Yankee Group predicts 7.44 billion unlicensed audio files will be swapped in 2005, up from 5.16 billion among consumers in 2001.

After 2005, Yankee predicts free music swapping will begin to decline. Yankee projects 6.33 billion unlicensed audio files will be swapped in 2006.

If Yankee's projections are right it could be bad news for the recording industry, which has been launching legitimate pay services (http://www.silicon.com/a47913 ) and working to thwart unlicensed music swapping - famously overthrowing peer-to-peer pioneer Napster.

According to the Recording Industry Association of America (RIAA), internet piracy of music has shaved five per cent from music sales in both 2001 and 2000. Although Yankee says the declines can be attributed to other reasons, unlicensed music swapping is "certainly a significant contributing factor".

Larry Dignan writes for News.com