Shipments of CD singles sank by 39 percent last year, according to data released by the Recording Industry Association of America. A federal court ruled this month that the service helped users violate music copyright laws. Financial penalties and an injunction have placed the future of the popular service in question. We haven't seen a credible survey yet that suggests Napster is hurting CD sales. Last week, music executives shook off Napster's offer to settle a copyright infringement lawsuit, saying it didn't offer a viable business model and failed to address concerns over the security of online music.
Some experts trace the drop in the sale of singles to the record companies themselves.
Singles, a mainstay of the industry in the 1950s and 60s, have fallen out of favor as a tool to inflate sales figures and influence radio programming, said Roy Lott, president of EMI Group's Capitol label. Industry analysts said the drop in sales can be attributed to a number of factors, including economic factors and a weak year for music releases. There were some isolated events, but we didn't put that much good stuff out. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.