Napster Case Flashcards
Describe how Napster technology worked.
A central server (where no data was actually stored) bridged a peer-to-peer network.
List a few characteristics of the average Napster user.
Difficult to profile, but the largest group consisted of 18-29-year-olds, college students, slightly more males (60-40 split).
How did Napster defend itself from the lawsuit by RIAA?
- Declared Napster was not liable because it did not have possession of any music files.
- Audio Home Recording Act (AHRA): legal to share within home with family, friends, for NON-commercial use.
What age demographic currently drives the [legal] music industry?
60+ (because they’re the ones actually paying for the music they buy)
What is being done today to combat illegal downloading?
Options include pay sites, but they receive low use, have a limited selection, and the music “disappears” if you miss a payment.
Alternately, some record labels intentionally upload corrupted files to illegal sites so downloaders have to go through the hassle of finding a decent quality song (labels hope the time cost is >EU to criminals)
What is Apple’s goal with iTunes? Why do they offer it as a service when it accounts for so little of their revenue and they earn at most $0.05 per song purchase?
Insert scandalous music here iTunes is a classy cover up! So when labels come knocking on Apple’s door, they can claim that their iDevices are supplied with legally downloaded music.
Describe Apple’s business model.
Apple INDIRECTLY encourages file sharing so customers fill their iDevices’ storage quickly… then Apple releases the next device with bigger storage and customers feel the need to buy it.
What kind of political issue does the Napster case represent?
Interest Group politics. Concentrated cost to Napster/Limewire/Apple, Concentrated benefit to Record Labels
Describe the iTunes Match service.
For a mere $25, iTunes users can legalize their entire libraries. Like a “get out of jail free” card, this service scans a user’s library and replaces corrupted files with the highest quality recording available. WHY?! To recover sunk costs. $25 > $0
