File-sharing services saw traffic dip after industry threat

LOS ANGELES -- Use of several Internet file-sharing services declined by several thousand people the week after the music industry threatened to sue online music swappers, an Internet tracking firm said Monday.

Kazaa and Morpheus -- two popular file-swapping services -- had 15 percent fewer users during the week ending July 6, according to Nielsen/NetRatings. The firm tracks weekly use by people who sign on to the services from home.

The decline translates to about 1 million fewer users on Kazaa. About 41,000 fewer users signed on to Morpheus and the iMesh file-sharing service that week.

"With the negative publicity and threat of steep fines, some surfers appear to be backing off," said Greg Bloom, a senior Internet analyst with the firm. "However, with millions of loyal users, these applications aren't likely to go off-line in the near future."

The Recording Industry Association of America, which represents the major recording companies, said last month it would soon begin suing individuals engaging in online music file-swapping.

The industry blames music downloading and CD burning for lagging sales in recent years and hopes that by going after users directly, it can curb traffic to the sites.

Messages left with StreamCast Networks, the company behind Morpheus, and Sharman Networks, which owns Kazaa, were not immediately returned.