Survey Finds Link Between Downloading, Drop in Sales

Sales of recorded music near college campuses declined in the last two years while rising elsewhere, according to a study the music industry believes shows the effect of people downloading music for free.

Music sales during the first three months of 2000 were up 12% over the first quarter of 1998. Yet at stores within five miles of a college campus, which account for roughly half of all albums bought, sales went down 4% in the same period, according to a study commissioned by Reciprocal Inc., a digital rights management company.

Dozens of colleges have banned the use of Napster, the leading service that allows people to download music files for free from the Internet, after heavy use clogged their computer systems.

The Recording Industry Assn. of America and rock band Metallica have both sued Napster, alleging that the company’s software allows computer users to trade copyrighted music online without permission.

Reciprocal’s study, released Wednesday, used figures from SoundScan, the company that measures music purchases.

Representatives from Napster and Scour.net, another company that facilitates downloading audio files on the Web, had no comment on the study.

Other factors may have cut into music sales near college campuses, including the growing popularity of devices that make CD copies, said Michael Fine, SoundScan’s CEO.