There has been a lot of squawking about the explosion in paid digital downloads in the last week of 2005. Soundscan said 20 million downloads were purchased between Christmas and New Years's Day. That was more than double the record of 9.5 million set just the week before. Just about every article mentions the two factors that probably contributed to the huge increase: MP3 players and gift certificates given as gifts.

If there's a correlation between gift cards and an increase in paid downloads, there's only one thing the industry should attempt to do: Sell as many gift cards as possible. Bundle them with hardware. Stick them in bags of potato chips. Put them next to the gift wrapping windows of department stores. Include them in legal papers sent to groups who didn't pay royalties after singing "Happy Birthday." Whatever it takes.

But gains in single downloads are often seen as a net negative because the industry's bread and butter, album sales, continue to dwindle at a rate that isn't being offset by digital gains. A TechNewsWorld article quotes two analysts who summarize the situation. On one hand, says one, people are still sharing files and the generation raised on free music still exists. But, the number of homes illegally downloading songs fell 11% between June and October, according to controversial NPD research. Said Russ Crupnick of NPD, "If this trend continues into next year, it would signify a solid victory in the music industry's efforts against illegal music file sharing in the U.S."