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Ethics in the music industry
How did napster change the music industry
How did napster change the music industry
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Recommended: Ethics in the music industry
. Introduction: Amidst the hot debate about whether or not music should be free, there are ethical and moral considerations as well. MP3 music downloading has become the latest fad for computer owners. One computer site where users can download MP3 songs is Napster. The emergence of digital entertainment, whether an MP3, Liquid Audio book, or streaming video, has caused an inevitable shift in the entertainment market from a commodity base to a service base. One reason is that the digital medium eliminates acquisition cost for the consumer. A perfect copy of the original good is automatically created upon request. Using open platforms and formats, new companies in the entertainment sector have literally bypassed traditional production and distribution channels to reach the consumer. Napster is the perfect example of this new paradigm, turning every member’s computer into an audio server and distributing an individualized playlist. However, this trend seriously limits a content owner’s ability to restrict the supply of his/her intellectual property on a large scale and thus control it. In response, the music industry has resorted to litigation and restrictive usage rules on licensed or retailed digital products. 2. Analysis the Economics of the music recording business The music industry continues to be characterized by commodity pricing. This is largely due to the fact that major label revenues are predominately derived from CD sales. As such, the focus of the industry’s online strategy has been to prevent CD sale cannibalization through control of online product supply and distribution. In the absence of this control, copyright owners would be unable to maintain pricing control. As a result, the industry has taken the lead in defining new rules for online digital distribution that would replicate conditions existing for off-line digital distribution. Copyright infringements (excluding the effect of Internet) - bootlegging, piracy and counterfeits - are costing the music industry approximately $5 billion per year sales in the music industry's five biggest markets (USA, Japan, Germany, UK and France) are growing slowly, if not stagnating 3. Analyze the company’s history, development, and growth. James Breyer (venture capitalist): “Napster is truly revolutionary- and it will be a precursor of some of the most important web applications over the next several years.)” 3.1. History
Napster is a virtual community, which consists of music news and chat-rooms, the main feature it offers is an easy way to download MP3's (music files). This controversial service has brought the lawsuit to Napster. Napster allows its subscribers to download the music files without charge. It is not however, from Napster that the subscribers get these files. It is from each other. The users share their hard drives so that other users can download any of their music files that they want.
We have all watched over the last year and a half as the controversy over the digital music provider Napster has clogged our television screens and lined our floors in the forms of newspaper articles. We are also well aware of the implications and revenue losses that the service either directly or indirectly causes. What I am going to investigate more in-depth in this article is, more specifically, the effect that Napster has on the operations of record stores worldwide. I am going to try to describe the most profound effects that Napster has on this industry.
Before the present time of computers and various media player technology, trading music files on the internet was practically unheard of. Today MP3 music files have become file format that is widely “swapped” over the internet. The problem with trading MP3's is that it violates copyright laws. However, this hasn’t stopped the tens of millions of file sharing software users who continue swap MP3’s. MP3 piracy is a costly business for many companies, and the disadvantages outweigh the advantages of “P2P” file sharing. File sharing is a costly, illegal practice that hurts not only the consumers, but the artists as well.
Witherbee, Amy, and Marlanda English. “Music Piracy Costs Billions.” Points of View Reference Senter. N.p., n.d. Web. 13 Mar. 2014.
It is not unusual to find hostile response of audio-visual industry against a new copying technology. Every time when a new copying technology was invented and introduced into the market, the industry responded argued that the new technology would cause significant damage to them by promoting piracy; It was true with the cases of Xerox, audio tape recorder, video tape recorder, compact disc (CD), and finally with the online file sharing through Peer-to-Peer (P2P) service. Usually, introduction of new copying technology led to series of legal disputes just like what we are witnessing in the current case of the Record Industry Association of America’s (RIAA) lawsuits against KaZaA and its individual members. Quite contrary to the industry’s usual arguments, however, new technologies eventually have proved additional revenues of profit for them so far. (Bettig, 1996)
Big time record companies and artist are losing billions of dollars due to people illegally downloading music files. The
Before the 1990’s, if people want to listen to music, they just visit a music store and pick up a CD and then put it into a stereo equipment. However, the development of MP3 file format gradually changed the way people listen to music. This format lets everyone download music easily and it can be converted to CD as well. But, there is still a problem: searching MP3 files on the internet is maddening and people seldom can find the music they want. Therefore, the birth of Napster solved this problem, creating a virtual music community in which music fans could use the Web as a “swap meet” for music files. More importantly, Napster is easy to use and it’s free, which expands the range of audience in age. Bandwidth also contributed to Napster’s success. The greater the bandwidth, the faster the file can be transferred. So, Napster really changed the way people listen to music, discover music and interact with music.
Along with the development of a file format (MP3) to store digital audio recordings, came one of the new millennium’s most continuous debates – peer-to-peer piracy – file sharing. Internet companies such as Napster and Grokster became involved in notable legal cases in regards to copyright laws in cyberspace. These two cases are similar in nature, yet decidedly different. In order to understand the differences and similarities, one should have an understanding of each case as well as the court’s ruling.
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.
Is important for anyone who has created any intellectual property to protect it. In the music industry, in order for someone to protect their work, they must obtain a copyright. Music has been around before anyone could obtain a copyright and when the invention of the computer came along it made it easier for someone to steal another artist's intellectual property with the help of the internet. This paper will cover what events have taken a big role in copyright protection for artist, the consequences if someone was to break the rules of a copyright which is called copyright infringement, and how will a copyright hold in the future. Were copyrights enacted without the thought of life changing technology, and how can some music companies surpass copyright infringement and make a profit from the artist? Can a copyright really make that much of a difference in the world we know today?
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 $3.5 billion. These numbers do not factor in the growing (and difficult to measure) problem of Internet piracy, in which music and movies are transferred to digital format and copies are made of the resulting computer file. Journalist Charles C. Mann explains why Internet piracy has the potential to be vastly more damaging to copyright industr...
Moreover, hackers came up with new ways to remove the digital copyrights so the same as before one downloads music and distributes them around. The industry gets its revenue from selling this content, whether it’s online or in stores, this funds new projects and allows for better products in the future. The public should be aware of this, downloading the content for free, and not buying it will decrease revenue for the companies, stopping them from undertaking future projects. “Production companies should lower the price on their products, I can’t buy music for at least 20$ 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...
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.
Now let’s flash forward back to present day when all that doesn’t happen anymore. Instead of saving of our money and begging our parents to take us to the store to buy a newly released album, we simply get on our computer, go to a website and download the album for free. It doesn’t matter what website it is, whether it is Limewire, Frostwire, or Pirate Bay, people will be happy with their free album. There are still some kids to this day who enjoy going to the store and buying and listening to an album the old-fashioned way but we have to wonder how bad things will get as more and more people are getting equipped with the Internet and the use of downloading music. While the internet might be making life easier for all, the growing use of downloading music on the Internet is growing into a detrimental and illegal problem.