John sends this story that the music labels have cut production by 25%. The RIAA has been complaining about how online piracy was costing sales.

After keeping the figure rather quiet for two years, the Recording Industry Association of America (RIAA) says the industry released around 27,000 titles in 2001, down from a peak of 38,900 in 1999. Since year-on-year unit sales have dropped a mere 10.3 per cent, it's clear that demand has held up extremely well: despite higher prices, consumers retain the CD buying habit.

CD sales were booming when Napster was at its peak. The case can be made that internet music sharing has boosted CD sales.

This site has some more RIAA stats, and some analysis. CD sales have roughtly tripled in the last 10 years. The music industry making money hand over fist, and has benefitted enormously from the internet. It complains because it wants total control over internet music, and it is not getting it (so far).