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The BPI says downloaders spend less on albums and singles
Sony BMG, the world's second-biggest record label, has acknowledged that it is talking to file-sharing service Grokster about collaboration.
Chairman Rolf Schmidt-Holtz told a panel discussion in Germany that the talks were "at the very beginning".
But, he said, his firm was aware it could no longer ignore the huge demand for file-sharing.
Grokster and similar services are often accused by the entertainment industry of encouraging music piracy.
Now, though, Sony BMG may want to get in on the act.
"We are noticing that there is huge demand for services like that," Mr Schmidt-Holtz told the panel on broadband internet hosted by German ISP T-Online, "and our intention is to transfer this demand into legal channels."
Sales slide
Part of Sony BMG has tried to get involved in file-sharing before.
In 2000, Bertelsmann - then the owner of the stand-alone music major BMG - almost signed file-sharing pioneer Napster up to an alliance.
At that time, Napster was reeling from legal attacks by the music business which eventually drove it to bankruptcy, although it has since re-emerged under new ownership.
It, and its successors, are frequently blamed by the big labels for the sharp fall in recorded music sales in the past four years.
Some analysts and academics, however, argue that file-sharing in fact can boost sales by encouraging customers to hear a wider variety of music.
They also point to the massive upsurge in spending on communications, video games and DVDs as another reason for flagging music sales.
And they claim the music business has spent too long trying to sue the networks out of existence and refusing to accept that they are now a fixture.
Sony BMG, the world's second-biggest record label, has acknowledged that it is talking to file-sharing service Grokster about collaboration.
Chairman Rolf Schmidt-Holtz told a panel discussion in Germany that the talks were "at the very beginning".
But, he said, his firm was aware it could no longer ignore the huge demand for file-sharing.
Grokster and similar services are often accused by the entertainment industry of encouraging music piracy.
Now, though, Sony BMG may want to get in on the act.
"We are noticing that there is huge demand for services like that," Mr Schmidt-Holtz told the panel on broadband internet hosted by German ISP T-Online, "and our intention is to transfer this demand into legal channels."
Sales slide
Part of Sony BMG has tried to get involved in file-sharing before.
In 2000, Bertelsmann - then the owner of the stand-alone music major BMG - almost signed file-sharing pioneer Napster up to an alliance.
At that time, Napster was reeling from legal attacks by the music business which eventually drove it to bankruptcy, although it has since re-emerged under new ownership.
It, and its successors, are frequently blamed by the big labels for the sharp fall in recorded music sales in the past four years.
Some analysts and academics, however, argue that file-sharing in fact can boost sales by encouraging customers to hear a wider variety of music.
They also point to the massive upsurge in spending on communications, video games and DVDs as another reason for flagging music sales.
And they claim the music business has spent too long trying to sue the networks out of existence and refusing to accept that they are now a fixture.
