From Cnet: Digital distribution of music through services such as Morpheus and Kazaa will continue to thrive, with use peaking in 2005, according to a report released Wednesday. The Yankee Group predicts 7.44 billion unlicensed audio files will be swapped in 2005 among consumers aged 14 and older, up from 5.16 billion in 2001.
After 2005, however, Yankee predicts free music swapping will begin to decline. Yankee projects 6.33 billion unlicensed audio files will be swapped in 2006.
If Yankee’s projections are right, it could be bad news for the recording industry, which has been launching its own pay services and working to thwart unlicensed music swapping.




