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Study Finds That Streaming And Spyware Are Killing Music Piracy

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It seems that people just aren't pirating music the way they used to. In many cases, because they don't have to. That's according to the NPD Group, which just released their "Annual Music Study 2012."  That report shows that the number of music files being illegally downloaded was 26% less in 2012 than in 2011. What's more, 40% of the people surveyed in the study who said that they'd illegally downloaded in 2011 did not do so in 2012.

So what's responsible for this massive reduction in piracy? According to the survey, it's not stepped-up enforcement - it's the availability of free music via streaming services like Spotify. Nearly half of the people who had stopped or sharply reduced their music downloading cited those services as the reason for stopping.

"Among other factors, the increased use of legal and licensed streaming services has proven to be an alternative for music fans who formerly used P2P networks to obtain music," said NPD senior vice president Russ Crupnick in a press release.

What's interesting to me is that streaming isn't just killing downloads. 44% of the survey respondents indicated that they'd also stopped ripping CDs from friends and family. Which makes sense. Why bother if you have on-demand access?

Another major factor is somewhat related to litigation - 20% of users reported that they'd stopped illegally downloading music either because their favorite site was shut down, or because the sites that are around now are so underground that they're filled with viruses and spyware.

I suspect that as streaming services become more prevalent and as even more music becomes available on them, piracy will continue to decline. This will also likely to be the case for movies and TV shows going forward, as they continue to be made more widely available. The only real question for the industry is whether the revenues from those streaming services will be enough for them to survive.

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