Napster Decline

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Back in the late 90s, music fans both young and old would line up for their favorite artist’s album drop and completely sell out shelves of CDs. The music industry was on top and bringing in revenue figures as large as 14.6 Billion in the United States alone in 1999. But with the advent of online music sharing and purchasing, the music industry went on a downward spiral. Pirating and illegal file sharing was made easier than purchasing CDs and paid content resulting in a Cat-and-Mouse game between the record labels and pirating sites. In 2006 U.S. revenues reached 11.5 billion and declined further to as low as 7 billion in 2010. But in 2015 the numbers started rising again. This is largely thanks to modern day streaming services, particularly …show more content…

But at this point in time, streaming was around for many years. In the early 2000s, Napster was one of the biggest names of digital music. Napster started off by two young programmers Shawn Fanning and Sean Parker. Sean Parker almost a decade later helped Spotify receive funding and contracts with labels. Their vision was that users should be able to share music computer to computer or “Peer-2-Peer”. This led to negative side-effects and the backlash from the music industry because people could share music and download it illegally. In July 2000, the Recording Industry Association of America had won in a legal battle against Napster stating that Napster must stop aiding the exchange of music under the copyright of the major labels the RIAA represented. This lawsuit caused Napster as a Peer-2-Peer file sharing site to shut down. However, this seemingly made the problem worse as alternatives to Napster quickly rose up. One of the bigger alternatives was Limewire. Limewire took on the same peer-2-peer sharing style as Napster and quickly gained infamy with the music industry. In 2011 the RIAA sued LimeWire for a formidable 72 trillion dollars in damages. As per the music industry, they imagined consistent growth from their zenith in 1999 predicting that they would go from an average of 5 albums purchased annually per person to 7 albums per person by 2009. The real data shows that the number is down to 2.5 albums sold per person in 2009. File sharing and piracy turned the music industry upside down and kept it down for almost 13

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