> Many small or local bands died out and only the big names survived, living solely on the income from their concerts because people no longer bought CDs.

I don't doubt your friend's experience, but I would hesitate to make sweeping generalizations like that. The fact is, CD sales were soaring just up until last year (it's worth noting that 2002 was also a decidedly bad year for the economy). I think CD sales reached record highs during 2000, which was also when music-swapping was probably at its peak (Napster was going full-swing right then).

I think it's probably too early to say exactly what the effect of file swapping will be on the music industry. To offer more antecdotal evidence, I know that the number of CD purchases *I* make has gone way up since I first used Napster. I used to rarely listen to music, and now I do so constantly. The Internet has allowed me to expand my musical tastes and try out bands that I would not have done so otherwise.

Stephen