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Net music piracy 'does not harm record sales':

Oberholzer-Gee and Strumpf monitored 680 albums, chosen from a range of musical genres, downloaded over 17 weeks in the second half of 2002. They used computer programs to automatically monitor downloads and compared this data to changes in album sales over the same period to see if a link could be established.

The most heavily downloaded songs showed no decrease in CD sales as a result of increasing downloads. In fact, albums that sold more than 600,000 copies during this period appeared to sell better when downloaded more heavily.
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