The question of whether MP3s reduce CD sales still hasn't been
resolved. Any report that concludes MP3s damage CD sales is soon
followed by one that claims they introduce people to more music which
they then go out and buy. About the best we can pick up from all these
reports is that whatever influence MP3 has on CD sales is pretty
marginal. Most of the big music companies sat back and did nothing
while the MP3 movement grew. The reason they've got involved now is not
because of poor CD sales, but because they want a piece of the action.
If people are going to use the Internet to listen to music, they want
it to be a commercial transaction with payment and profit involved.