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Case 2: P2P Networks

From the original Napster to today’s bittorrent, peer to peer file sharing networks have worked to provide information content in many formats. (MP3-Audio, AVI- Video, exe/doc/other formats). Though the creators of such content may not have approved this type of file sharing, P2P networks have adapted and managed to circumvent most legal efforts to stop such activity. The question we have been posed as a class is who will win the competitive battle between P2P file sharing networks and iTunes over the long run and why?
I believe that P2P sharing will coexist with paid download systems but if I had to choose one to outlast the other I would choose P2P networks. It is my thought that just as the completely secure computer is one that is never turned on, the only way to ensure that an artist’s CD won’t be converted into an MP3 and pirated across the web is never allow anyone access it. Protection schemes can and have been broken or at least circumvented with enough time and resources. Legal action is slow and has done little to prevent the increase of P2P networks. The record and motion picture industries will continue to face complicated decisions as to how they can reduce the incentive for digital piracy. One option that seems viable is the HULU.com which provides popular TV shows via streaming online for free; using an advertisement supported revenue model.

2 Comments so far »

  1. by Anonymous , on February 5, 2009 at 1:15 PM

    I like your comment about Hulu. Do you think consumers would go for an ad supported free music service? There have been a few unsuccessful attempts in the past, but more and more radio stations are beginning to provide online streams of their content.

  2. by Twilliams , on February 7, 2009 at 5:53 PM

    I think some services do that currently, but I haven't seen it in downloads. I think radio has that built in expectation of ads so it easily translated to online radio. If I pick a song to download to my Ipod I don't expect to hear a Sears ad after the song is over. I think it would be an interesting concept to figure out an acceptable way to incorporate advertisements with downloaded content.

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