File-sharing traffic dropped some 22% in the months of June and July. While this could be related to the fact many people are busy elsewhere on vacation or other non-computer activites, it is likely due to the 'fear factor' that the RIAA has put on file-sharing.

While CD sales were in decline already, the decline accelerated over the same time period. CDs and singles dropped 15.8% over the same period last year. Many believe this is due to a general dissatisfaction with the industry which is in turn leading the consumer to some form of protest.

Sales of top-line albums have also dropped drastically. The top 10 CDs sold 34 million units last year, down from 60 million in 2000.

Analysts claim that the physical CD is due to retire and be replaced by electronic distribution. 'The prepackaged CD, without a shadow of a doubt, is over the hill, and it's all downhill from here on,' says Phil Leigh.

Leigh also claims the RIAA's lawsuits are in fact hurting sales. 'What (the RIAA) might end up doing is breeding more hostility among customers.'

Cary Sherman, RIAA president, dismisses both statements. He believes the industry will survive the way it is. He says the industry has taken the right steps to insure survival. 'These people have no right to free music.'

The 'issue is not the decline in CDs; it's the decline in people paying for the music that they acquire. We need to get people back into the habit of paying for music, whether it's from record stores or a legal online service.'

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