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The first such study was done in the US. It was undertaken by researchers of Harvard University and the University of the North Carolina. They kept track of music downloads over 17 weeks in 2002. These were then compared to the markets sales of CDs against the ones downloaded. The conclusion reached was that the multiple and numerous downloads had limited effect on record sales

A study of file-sharing's effects on music sales says online music trading appears to have had little part in the recent slide in CD sales. Furthermore, the authors of the report related that they think that those who downloaded music would not have bought the CD. The big culprits of downloads were identified as Kazaa and Morpheus who offered a link for people to use in downloads.

Music producers and CD companies reported lower sales and blamed the loss on downloads where some music offers are for free. Besides the downloads lower incomes and the recession were also blamed. Then there is also the possible impact of other forms of entertainment such as DVD movies, video games for TVs and computers.

The study has aroused interest to the effect that some people felt that the music industry should make music available on a peer-to-peer basis on networks to distribute the music. The feeling is that the download companies such as Kazaa and others should negotiate and cooperate instead of fighting and opposing each other.

This study was done by professors Oberholzer (Harvard) and Strumpf (Univ. North Carolina). They used logs amounting to 1.75million downloads over a period of 17 weeks.This research showed that some people only did a logon twice and downloaded about 17 songs, while others logged on much more and downloaded more. In one case, one person downloaded 5,000 . The next step was to choose songs and then made a comparison of the albums with that of the downloads of the same songs. The researchers concluded that it would take about 5,000 downloads to upset and displace the sale of one CD. Even if millions of downloads were done worldwide, it would only affect the sales minimally. They even felt that the downloads could even push sales up a little.

People who read and studied the report were critical of its findings. They feel that other studies showed both positive and negative effects. The Recording Industry Association of America was dismissed the results as inconsistent with earlier findings. This body referred to a study by the University of Texas who concluded that the downloads did affect the music industry (Borland 2004).

The above report attracted many online comments. One highlighted the fact that CDs were too expensive compared to the records sold in the late 60’s and 70’s and teenagers then could buy one easily by just doing household chores such as lawn mowing or babysitting. In the present time, the costs of CDs are high and will require many lawn mowing and sessions of baby-sittings. Thus, teens are not to blame if they rather download music. These teens are afraid to buy a CD incase the rest of the music on it is not too good. Another person complained that modern technology makes the production costs of CDs, and questions the high cost in the shops. Therefore, people rather download (Oberholzer & Strumpf 2004).

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