This topic has been causing a stir across the Internet over the past week or so. While record labels have been reluctant to condone filesharing in any form, some analysts have argued that filesharing actually increases CD sales. What stance would record labels then take if such a claim could be proved outright?

Unfortunately, it’s almost impossible to say for sure either way. Whatever happens, the filesharing debate will never die as there will always be those who are either strongly against it or strongly in favor of it. We like to think we’re the latter.

An Oberholzer-Strumpf study points to filesharing increasing CD sales. Most recently, Birgitte Andersen and Marion Frenz of Birkbeck College in London released the findings of a study.

Our analysis of the Canadian P2P file-sharing subpopulation suggests that there is a strong positive relationship between P2P file-sharing and CD purchasing. That is, among Canadians actually engaged in it, P2P file-sharing increases CD purchasing.

This is far from proof, however, as the study also points out that the pair were “unable to discover any direct relationship between P2P file-sharing and CD purchases in Canada”, as Jack Schofield pointed out.

We think that filesharing doesn’t harm CD sales because it gives music fans access to unlimited resources. You can listen to any song you like. Music fans are exposed to increased amounts of music, which then encourages them to go out and buy CDs.

However, one statistic against this is that CD sales have dropped and the number of music downloads has increased. Sales of digital downloads are set to increase 50% this year. Just recently in Great Britain, a record-breaking 1.7 million singles downloads were bought in a week. People are still buying music.

Perhaps the argument should ask the question: does filesharing increase music sales, rather than CD sales?

With the online music industry booming, filesharing has its place. What’s your stance? Do you think filesharing increases CD sales or is it a load of rubbish?

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