Music World always seemed to have higher prices, even on their new release promotional pricing. I think it's tough for them to compete with a WalMart or a Future Shop who tries to get you in the door with a almost at cost price so that you walk out with an above cost DVD player or TV.
Downloading may have something to do with it, but I doubt it's the main catalist here.
And here's some proof:
http://www.cbc.ca/money/story/2007/1...d.html?ref=rss
Looks like a little of column A, a little of column B... but nothing about illegal downloads.