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i studied this on my music business course, and yes we found that mp3's are not the main factor for a drop in CD sales. with that said, it is a factor none the less.
i am not really any of those types above... i just don't buy cd's. all my music is on vinyl, which i have to buy in order for me to play. i never bother downloading mp3's now, as it gets tiresome on a 56k modem. but i will say this: i used to download shit loads of mp3's, and when i started to dj, if i saw a tune on vinyl that i had on mp3, i bought it. and the same still goes.. every now and again, my mate gives me a cd full of mp3's. if i like tracks on there i will go and buy them on vinyl if possible.
unfortunatly, its not only the big labels that get hit hard. even though more people are getting into djing than ever before, most of the money in EDM is in the licensing for compilations, not vinyl sales. as more and more compilation making people make more commercialised bollocks compilations (i.e. without the good, more underground stuff) it makes it hard for the smaller compilations to compete in the market. take for example MoS. 4 years ago, they would have licensed tracks catered more towards the clubbing population, and thus these are tracks which you just wouldn't find in the cd singles section of most mainstream music shops. nowadays, MoS release the most gash utter bollocks, with many of the singles being found in the mainstream cd singles section, and in turn not getting the money distributed to the more underground/non commercial/small independant labels.
because of distribution companies acting twats, the prices of CD's are sky high. this is THE DISTRIBUTOR'S FAULT NOT THE LABEL. labels lose out because they have to sell their tracks to distributors for shit money. they then in turn hike up the price to the shops, which in turn have to hike up the price of the cd's in the shop. this has a knock-on effect of people not wanting to buy cd's because they are too pricey, but the reason the EDM scene is slowly getting smaller and smaller (apart from the uber-gash commercial shit mentioned previously) is because of this.
so basically, hunt out those non-bollocks good compilations AND BUY THEM NOT DOWNLOAD THEM (unless you are buying the download, thats ok )!!!
/end rant 
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MUGGETS
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