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Impact of piracy on music businesses
The effects of the internet and digital downloading on the music industry
The effects of the internet and digital downloading on the music industry
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Copyright infringement?
Entertainment today is mainly provided though a digital spectrum. Purchasing and streaming videos and music off of sites like Amazon, Spotify, Netflix, and ITunes, are some the ways of acquiring digital media legally. Production companies and record labels are making a great deal of money in today’s society; but with unauthorized peer-to-peer systems illegally downloading music and movies, there is a dramatic change in the potential profit for these industries. The RIAA claims (Recording Industry Association) “that more than 2.6 billion files of music were illegally downloaded every month on unauthorized peer-to-peer (P2P) systems" (Roda, 2003). Companies are trying to protect copyright infringement by implementing digital encryption technologies and strict laws that prohibit tampering these encryptions.
The Beginning
The era of internet piracy began in May of 1999 when a college student founded a website called Napster that allowed users to upload and download music for free through connected computer networks. "In the first four months of its initial release, Napster hosted roughly 1 million users" (Bach). After one year, however, the service became so popular that the Napster community expanded to an unprecedented 20 million users. Though it was eventually charged for copyright infringement and lost a series of legal battles, Napster had already introduced the world to internet piracy. "Napster, in just two years, caused the music industry, specifically in compact disc sales, to steadily lose roughly $500 million in revenue in each preceding year" (Bach). The damage that these rogue websites have done to the entertainment industry by promoting and hosting file sharing services has been catastrophic....
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... have rigged their software and hardware to make it less accessible to illegally download their files. However, there will never be a way to completely assure that digital piracy will be non-existent. Therefore digital piracy will continue to be exercised. Unless consequences become more severe, digital piracy will continue for generations to come.
When content is made easily available through services such as Netflix, Amazon Prime or Spottily, the traffic to piracy sites dwindle. This is because of that fact that when content is made easily available at a reasonable price people tend to stop pirating. “The best way to combat piracy isn’t legislatively or criminally but by giving good options”(torrentfreak.com). The services that provide the content enable the user to go onto secure sites free from virus and also takes away the consequences of fines that may arise.
An option that copyright owners have considered toward protecting their works from circulating in P2P networks is to use a variety of technological tools to prevent piracy. Such tools would be capable of blocking, decoying and redirecting the connections of unauthorized copyrighted file transfers. However, federal and state laws such as the Computer Fraud and Abuse Act of ...
Throughout time, people have resorted to stealing in order to obtain items instead of buying them. It became a problem so consequences were made. Even dating back to the Ten Commandments there were laws against stealing. Recently, theft has become a problem over the internet. Musicians and music companies have lost millions in revenue. Websites such as Napster, The Pirate Bay, and Pandora have made it extremely easy for people, specifically teens, to illegally download and or listen to music for free. Pirating music has become a problem especially because “91 percent of all new music was downloaded illegally over the Internet instead of purchased,” says Logan Lynn from Huffington Post (Lynn). Many, such as the RIAA claim that music piracy is “an ongoing and evolving challenge,” (Who) while others suggest that it is “keeping the music industry alive,” (Issacson).
Recently, there has been a series of copyright infringement litigations against Internet businesses that are involved with unauthorized distribution of music files. The US recording industry claims to lose three million dollars per year because of piracy. A report predicted an estimated 16 percent of all US music sales, or 985 million dollars would be lost due to online piracy by 2002 (Foege, 2000; cited from McCourt & Burkart, 2003) Even though this claim has to be taken with caution, as it is based on false assumption that if copyright laws were strictly enforced, audio pirates would become buyers, it is apparent that audio piracy grew to a worrisome level for the record industry. (Gayer & Shy, 2003)
In this case, there are three main effects of Napster on the recording industry. The first one is that it caused a large decline in record sales in a short time. According to this case, the spending on recorded music in U.S dropped 4.1% in 2001 and the industry’s top 10 albums also sold much less compared to the year before. The second effect is that it cased the sales of CD burners, blank CDs and digital audio players increase and nowadays, most new computers come with CD-RW drives installed, which means people can easily store downloaded music, share music with friends and take it with them anytime as well. The third effect is that it increased the cost of recorded music. Once people can download free music through peer-to-peer software services, they have less incentive to buy original editions, which will make recording industry spend more to fight against copyrights and invest more in new artists and new music. Overall, these three effects make the recording industry go through a hard time.
According to the text A Gift of Fire, Napster “opened on the Web in 1999 as a service that allowed its users to copy songs in MP3 files from the hard disks of other users” (Baase, 2013, p. 192, Section 4.1.6 Sharing Music: The Napster Case). Napster was, however, “copying and distributing most of the songs they traded without authorization” (A Gift of Fire, Section 4.1.6 Sharing Music: The Napster Case). This unauthorized file sharing resulted in a lawsuit - “eighteen record companies sued for contributory infringement claiming that Napster users were blatantly infringing copyrights by digitally reproducing and distributing music without a license” (Communications Law: Liberties, Restraints and the Modern Media, 2011, p. 359).
The story really begins with Napster and its free software that allowed users to swap music across the Internet for free using peer-to-peer networks. While Shawn Fanning was attending Northeastern University in Boston, he wanted an easier method of finding music than by searching IRC or Lycos. John Fanning of Hull, Massachusetts, who is Shawn's uncle, struck an agreement which gave Shawn 30% control of the company, with the rest going to his uncle. Napster began to build an office and executive team in San Mateo, California, in September of 1999. Napster was the first of the massively popular peer-to-peer file sharing systems, although it was not fully peer-to-peer since it used central servers to maintain lists of connected systems and the files they provideddirectories, effectivelywhile actual transactions were conducted directly between machines. Although there were already media which facilitated the sharing of files across the Internet, such as IRC, Hotline, and USENET, Napster specialized exclusively in music in the form of MP3 files and presented a user-friendly interface. The result was a system whose popularity generated an enormous selection of music to download. Napster became the launching pad for the explosive growth of the MP3 format and the proliferation of unlicensed copyrights.
Physical piracy-the copying and illegal sale of hard-copy CDs, videotapes, and DVDs-costs the music industry over $4 billion a year worldwide and the movie industry more than $3.5 billion. These numbers do not factor in the growing (and difficult to measure) problem of Internet piracy, in which music and movies are transferred to digital format and copies are made of the resulting computer file. Journalist Charles C. Mann explains why Internet piracy has the potential to be vastly more damaging to copyright industr...
There are a lot of people who download music and movies without paying. The main reason that this is such a big issue is because piracy substitutes for a legitimate transaction; for example, someone who would have originally bought a DVD of the movie Young Guns but instead downloads it for free on The Pirate Bay. In this case, the person pirating the movie or song would never have bought it. This happens frequently if the “pirate” lives in a relatively poor country, like China, and is simply unable to afford to pay for the films and music he or she downloa...
The first reason why downloading and uploading copyrighted materials from the Internet should be legal is that downloading copyrighted materials positively affects the economy. The European Commission Joint Research Center reported that the profits of music companies would be 2% lower if uploading and downloading copyrighted materials were banned. However, music companies are able to acquire more profits despite illegal downloading because many people tend to purchase CDs or DVDs after watching or listening to copyrighted materials for free. Moreover, the research showed that people who download music illegally spent more money to buy music than people who did not download illegally. In addition, research conducted by the Swiss government informed that one-third of Swiss people downloaded copyrighted materials from the Internet because personal use of copyrighted materials is legal in Switzerland. Even though there is a fact that many people can download copyrighted materials from the Internet legally in Switzerland, the amount of money that people spend to buy copyrighted materials is not f...
In today’s technological age and consumer-driven economy, there is no doubt that media piracy and file sharing are in demand and makes a big business. Not only the so called “bootlegged” materials cost less, but most of it also managed to completely imitate the quality of the original materials. It is much easier to people to download movies or music online or buy bootlegged DVDs for 5 dollars than to watch the movie in theaters or pay for the whole CD when there is only one song that the person likes. People know about the possible consequences of these actions, but they do not have a choice especially in these times of economy recession, plus everyone nowadays is doing it, so it would not be considered such a big deal at all if they illegally download or purchase copyright materials. On the other hand if everyone is doing it, why there are still some people getting caught? Not that they should not be punished, but being put into jail and paying a fine that is ridiculously impossible to pay are just practically harsh. Maybe if those people are business tycoons of counterfeit materials, but the fact that most of those people getting caught are just ordinary people trying to be practical and doing what the rest of the world is doing which is doing these “illegal” downloading or purchasing bootlegged movies and music. The government and the entertainment industries are using ordinary people as scapegoats and have been doing draconian methods in moms, children and maybe even old people by suing them for downloading or sharing pirated materials for free, because of the fact that they are having a hard time pursuing the big time “master minds,” who are making a profit out of someone else’s work.
Moreover, hackers came up with new ways to remove the digital copyrights so the same as before one downloads music and distributes them around. The industry gets its revenue from selling this content, whether it’s online or in stores, this funds new projects and allows for better products in the future. The public should be aware of this, downloading the content for free, and not buying it will decrease revenue for the companies, stopping them from undertaking future projects. “Production companies should lower the price on their products, I can’t buy music for at least 20$ per album and DVDs for 30$, I only make 200$ per month,” said George Issa, a music fan who spends most of his nights downloading music from the internet, “when there is an album or movie that I really like, I try to buy it legally, I don’t think I am doing anything wrong, they are wrong making money off our backs,” he added.
The music industry started in the mid 18th century with Wolfgang Amadeus Mozart. Through the decades there has been a great increase in this industry; however, the revenues for this industry have declined by half in the last 10 years. This has been caused by music piracy, which “is the copying and distributing of copies of a piece of music for which the composer, recording artist, or copyright-holding record company did not give consent” . After 1980’s, when the Internet was released to public, people started to develop programs and websites in which they could share music, videos, and information with...
With the popularity of the Internet, sales for CDs, DVDs, Movies, and many other products have increased. Along with the increase of sales has brought forth an ever increasing problem of illegal media being downloaded. Programs such as Bittorent, Kazaa, and other direct-connect networking programs have allowed the transferring of such illegal media. Downloading song files from the Internet over a free peer to peer network is the moral equivalent of shoplifting music CDs from the local mall.
Napster is a company that developed the so-called peer-to-peer technology that lets people search and retrieve music files directly from one another's personal computers. When Napster first came out, millions of internet users worldwide were illegally downloading and distributing copyrighted music, videos, images, and software for free. After being vilified by the entertainment industry, which claims that Napster and any similar programs could make piracy of almost any digital work unstoppable, and many court battles, Napster was ordered by court to be shutdown in 2000. The technology has been praised as a revolutionary development for the Internet—unaware of the problems that would arise from such practices. However, the termination of Napster was not enough, months later, dozens of new, like programs were being developed and used. And since Napster, not much has been done to stop these latest downloading programs.
Illegal downloading can also be known as piracy. Piracy is defined as stealing a piece of music in which the composer or recording artist did not give consent for. It is the stealing of music from people such as songwriters, musicians, record label employees, and everyone else who put hard work into it. There are some people who see no problem with downloading music from the Internet but it presents three main problems. The first problem is that the music will mostly likely not have g...