Online music sales drop by 25%
Online music sales have fallen by 25% according to this AP story in the Wall Street Journal (subscription required):
Internet sales of prerecorded music, such as CDs and cassette tapes, reached $545 million through the third quarter, well behind last year's total of $730 million for the same period, according to the study conducted by research firm comScore Networks. The study found former Napster users flocked to alternative file-sharing networks such as Kazaa and Morpheus after Napster went offline in the summer of 2001. Morpheus's user base grew from fewer than one million in June of that year to 7.2 million by March 2002, comScore said.