The music industry risks alienating customers by selling copy-protected CDs without warning labels.
The warning comes from US market research company Gartner as the industry tries to stamp out CD piracy, which it blames along with internet file swapping for a marked slump in music sales.
Copy-protected CDs, including albums by Michael Jackson, Celine Dion and Natalie Imbruglia, prevent consumers from making MP3 music files or copying to a blank CD.
Even though they are not playable in all CD players, it is optional for companies to put labels on CDs notifying customers they are protected.
Gartner's survey of adults and teenagers in the US found 74 per cent of them thought copy-protected CDs should be labelled.
Research director PJ McNealy said: "Until the technology is tweaked labelling must be required.
Consumers will balk if they buy a CD and find it won't play on every CD player they own."
Eighty-two per cent said they thought it was legal to make copies of CDs for personal back-up, while 77 per cent thought they should be able to copy for personal use in another device. Sixty per cent of the consumers said they should be able to give another member of the household a copy.
Mr McNealy said: "Since consumers perceive they have the right to make some copies, the lack of labelling will contribute to declining revenue as CD buyers become frustrated."
Another survey of more than 1.5 million web users by research firm ComScore Networks found sales of CDs and cassettes online had fallen by 25 per cent up to October this year.
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