The Canadian Recording Industry Association, the Great White North's equivalent of the Recording Industry Association of America, released a study last week on the effects of Internet downloading and file sharing on commercial sales. Although the recording industry has loudly bemoaned that the Internet threatens their existence, the results of the CRIA's study show that such bellyaching may be much ado about nothing.

The survey found that amongst those who download music from P2P services, the top source of music found on their computers remains digital copies of their own CDs (36.4% to 32.6%). However, once you include the percentage of paid downloads (20.1%), shared music from friends (8.8%) and downloads directly from artist's sites (5.6%), it appears that "file-sharers" pay for or legally acquire, from the music industry's perspective, roughly two-thirds of the music on their computer. Belying the myth that teenagers are responsible for the most egregious amount of file-sharing, the greatest spread between CD rips and P2P downloads occurred in the 35 to 44 year old demographic.

Consistent with results of previous surveys, the study found that 75% of respondents who download music eventually buy that same music. Although commonly found, this result isn't widely circulated by the recording industry. While the 13 to 17 year old demographic contained the lowest percentage of non-buyers of music previously downloaded, the group does purchase the greatest number of CDs and DVDs.

With respect to purchasing trends, the CRIA's study yielded inconsistent results as to whether buying patterns increased or decreased over the past year. Curiously, when those who purchased less music over the past year were queried on their reasons, only 10% cited the availability of music downloads. 16% of the respondents claimed that the cost of CDs caused their decreased spending while 14% cited lack of interest in the available music.

Given that CDs often sell at a 500% markup over production costs, the music industry should take note that their own greed seems to be costing them more than P2P file sharing. Perhaps the millions spent to combat file sharing by lobbying congress and spreading propaganda would be better spent by re-investing in their own A & R departments so that they can find, record and develop artists who will inspire their fans to seek out and purchase their music.