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Both online and physical music piracy continue to impact the music industry midway through 2002, with a comprehensive new survey of public practices providing the strongest evidence to date that illegal Internet downloading is displacing sales and helping explain a seven percent drop in CD shipments and a 69.9 percent increase in counterfeit/pirate optical disc seizures

Even without taking into account substantial improvements in product quality, the cost of recorded music to consumers has fallen dramatically since CDs were introduced in 1983. Between 1983 and 2001, the average retail price of a CD fell by 32%. Over this same period, consumer prices (measured by the CPI) rose 77.8%. If CD prices had risen at the same rate as the CPI over this period, the average retail price of a CD in 2001 would have been $38.23 instead of $14.64. While the price of CDs has fallen, the amount of music provided on a typical CD has increased substantially and enhanced CDs offer video entertainment in addition to music.