Moneymanagement’s Weblog

File-sharing Networks Return with Legitimate Ways to Share Music — and Make Money

Posted in Uncategorized by moneymanagement on August 8, 2008

Wharton Knowledge has an interesting article on file sharing in the music industry. If what they profuse is true we may have the best of the music avaible legally online istead of just garage nads and indiepop

After the U.S. Supreme Court declared in 2005 that Internet file-sharing sites Grokster and StreamCast had illegally aided their customers’ efforts to share pirated copies of copyrighted music and video files, many commentators predicted the demise of businesses that depended on online file-sharing.

But the technology that Napster, the pioneer of music file-sharing, Grokster and StreamCast unleashed has returned, supported by a business plan that respects copyright laws. Three years after the high court’s ruling, several start-ups say they have found ways to make peer-to-peer (often called P2P) file-sharing legal and perhaps profitable.

And it also goes on to say……..

Rock musician Peter Gabriel has endorsed another approach. He’s an investor in a peer-to-peer file-sharing firm called We7. Its customers can download free songs with short ads at the beginning. “The revenue generated from these advertisements goes to artists, labels and other rights owners,” We7 explains on its web site. “You get music for free, and the artist gets fairly paid.” The ad disappears after four weeks. Or customers can elect to purchase a file outright and skip the ad. Users can also share files.

Which of these models will triumph? Hosanagar isn’t sure.

“I can think of three or four outcomes we might see. There might be free content that’s used to stimulate demand for the other things, like concerts and T-shirts. There might be free ad-supported content. Or there might be a model where you buy the songs, but it will not be the rigid pricing model that we see today. Or lastly, it might be a model where payment is on a per play basis rather than a per-purchase basis.”

Read the entire article here

http://knowledge.wharton.upenn.edu/article.cfm;jsessionid=a83059d9579b7a435836?articleid=2025&CFID=71529455&CFTOKEN=56842995&jsessionid=a83059d9579b7a435836


Moneymanagement’s take on this

Like other free software and content available music too will eventually become free. The revene model will have to change for it to survive. In the growing age of technology Piracy has been refined and if the music industry does not keep up with the changes, it will lose out on a large revenue share.

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