Does file sharing help CD sales?

Ryan Freebern points out an article from the UK Guardian. The paper writes, New research suggesting that file sharing has no impact upon sales of CDs has, not surprisingly, angered the music industry.

"Over the period 1999 to 2003, DVD prices fell by 25% and the price of players fell in the US from over $1,000 to almost nothing," says
Koleman Strumpf, Associate Professor in the economics department at the University of North Carolina. "At the same time, CD prices went up by 10%. Combined DVD and VHS tape sales went up by 500m, while CD sales fell by 200m, so a possible explanation is that people were spending on DVDs instead of CDs."

Another possible explanation is simply that the current music scene rots and CDs are way overpriced for the poor quality product.

Despite gloom and doom predictions from the RIAA (record industry trade group), CD sales in America have increased by 7%, despite continued growth in file sharing.

Let me repeat that: CD sales in America have INCREASED by 7% despite the explosion in file sharing.

Professor Strumpf casts doubt on the RIAA's sky-is-failling mentality, "If file sharing is killing record sales, why are records starting to sell better?"

Freebern, for his part, wonders I’m curious how the RIAA will respond to that. “They may be rising, but they’re not rising enough!”

Their solution will probably be to expand their disastrous strategy of suing their own customers.