Back in 1999 ShawnFanning at
the age of 19was a student atNortheastern Universityin Boston when he hadthe idea for a computerprogram that wouldmake sharing MP3seasier by allowing usersto see a directory ofsongs stored on othermembers computers.
Napsters fame spreadby word of
mouth, andit soon had 10,000 to15,000 users. But once the program was featured on Cnets Download.com site, the number of users soared into the millions.
Reasons Why Napster was useful:
It helped people discover new music Ar tists who were once unheard of gained recognitionAcoustic and various versions of the same song were available The more peers online, the broader the spectrum of music and more.
The Recording Industry Association of
America (RIAA)denounced music "sharing" as equivalent to theft, andfiled a lawsuit against Napster in November 1999 (andagainst thousands of customers over the coming years)for stealing music.
Heavy metal band Metallicaalso filed
a lawsuit againstNapster in 2000."With each project, we gothrough a grueling creativeprocess to achieve music thatwe feel is representative ofMetallica at that very momentin our lives, ..."said Metallica drummer LarsUlrich in the accompanyingpress release.
“What record companies don’treally understand
is thatNapster is just one illustrationof the growing frustration overhow much the recordcompanies control what musicpeople get to hear, ...“„Why should the recordcompany have such control overhow he, the music lover, wantsto experience the music? Fromthe point of view of the realmusic lover, what’s currentlygoing on can only be viewed asan exciting new development inthe history of music.” (Prince 2000)
QUESTIONFrom the music lover‘s perspective
was it really „free“back in 1999/2000 to download music from Napsterwith a 28K Modem blocking the phone line, with somemusic files being corrupt, and no flat-fee andBroadband in sight?
“...The choice we‘ve made, was
music. Now, why music? Well, we love music! And it is allways good if you do something you love.“ „More importantly, music is a part of everyone‘s life. Music has been around for ever. It will always be around. This is not a speculative market. (...) It‘s a very large target market all around the world. It knows no boundaries.“(Steve Jobs during the Introductionof the first iPod 2001)
„With the best-selling iPod, which
debuted in2001, and through the iTunes Music Store, whichlaunched in 2003, Apple Inc. and CEO Steve Jobscapitalised on consumers newfound freedom tocontrol their media.“ (Mike McGuire, Gartner)
„Napster in its heydayalso was
cited as onereason consumerswere getting high-speed internet access.Since then, continuedbroadband adoptionrates have paved theway for the success ofpopular online videosites such as YouTubeand Hulu.“ (Phil Leigh, Internet Media Analyst)
Analysts say todays internetlandscape -
with millions ofconsumers downloadingsongs from the iTunes MusicStore, watching videos onYouTube or Hulu andnetworking on social mediasites like Facebook - can betraced back to the day inearly June of 1999 whenFanning made Napsteravailable for widerdistribution.
Napster laid also thefoundation to
Business ModelInnovation which arechallenging old paradigms:Napster „gave“ somethingaway for „Free“ which pavedthe road for varioussuccessful Business Modelslike „Freemium“and the logic of a peer-to-peer network illustrated thepossibility to deliver „Less ofMore“. The Idea laterdescribed as „The Long Tail“
Im not sure what influenced
Lawrence Lessig, Hal Abelson, and EricEldred in 2001 to found the non-profit organization Creative Commons(CC), but if Napster hasn‘t played a role, I would wonder.
Creative Commons was invented to
create a more flexible copyrightmodel, replacing "all rights reserved" with "some rights reserved".In 2008 Nine Inch Nails successfully released their latest Album„The Slip“ under a CC-Licence over the Internet.
Also Wikipedia is one of
thenotable web-based projectsusing one of its licenses.And even this Presentationwould not have been possiblein this form without CC.
"What did Napster give everyone
in theworld? It gave them a frictionless, convenientway to get content.“ „Napster helped change the mindset of a generation that now sees digital forms of all media, from music to newspapers, as more convenient.“„You can argue that everything that happenedsince has been a reaction to Napster.“ (Mike McGuire, Gartner Industries Media Team)
Due to the Distribution Channel
Internet, new forms ofCopyright, continuously shrinking costs for Bandwidth,Computing Power and Memory Space the exclusive „right“to produce and distribute content such as Information,Music and alike was taken from the traditional mediairrevocably.
Apple has understood best to
grasp customerneeds and anticipate social and technologicaldevelopments.Apple performed a metamorphosis from acomputer company into a media companynow offering an attractive platform for digitalcontent of all kind.
„Marketing’s control over branding, messaging
andpositioning are in unprecedented decline as peer-to-peer, crowd sourced, and affinity-basedcommunity interactions gain increasing influence.“ (Accenture Interactive, Point Of View Series 2010)
#1 MP3 enabled peer-to-peer file
sharingRecap of music #2 Napster gave everyone in the world a frictionless, convenient way to get content #3 This was disrupting the Music Industry and influencing: Technological Developments Social Networks Business Model Innovations Empowered Customers New Marketing Reality #4 The new Giant Apple was inspired #5 The exclusive „right“ to produce and distribute content was taken from traditional media irrevocably
Youve made it this far.
Thanks for your attention and sharing! Thorsten Faltings Business Development Consultant Happy to help you through todays Marketing & Business Revolution Let‘s network! @faltings Also featured“on facebook.com/faltings SlideShare.net slideshare.net/faltings linkedin.com/in/faltings fa.ltings.de firstname.lastname@example.org
Credits:Photos Websites1. tfaltings.de - Pipi
„P!nk“ Langstrumpf Flickr.com2. tfaltings.de - Bowie in a Boombox Wikipedia.com3. www.se2009.eu - Karlheinz Brandenburg - Photo: Margareta Stridh/Regeringskansliet Wired.com4. Flickr/Shawn Fanning aka Napster/Joi Ito accenture.com5. Flickr/Tower of Terror, aka CDs/William Hook6. Flickr/Diamond Rio PMP300/nrkbeta rateyourmusic.com - A Timeline on7. Flickr/IRC on my TRS-80/Blake Patterson Technology, Social, and Legal Battles8. Wikipedia/Screenshot Napster in 2001 that have changed in how we9. Wikipedia/Diagram Napster Unique Users receive and use music.10. Flickr/Green Hell/Mark Wainwright11. Flickr/Prince!/Scott Penner www.tech-faq.com - What Happened12. Flickr/Even If/Fey Ilyas to Napster13. Flickr/Money/Andrew Magill14. www.wide-wallpaper.de/Apple Logo15. Youtube/Steve Jobs presenting first iPod 2001/Screenshot16. Flickr/Ciber Cafe/Lars Kristian lFem17. Flickr/The new concept of friendship/Sylvain Latouche18. Flickr/Lessig_CC/Simon Bierwald19. Flickr/Creating Ghosts I-IV/Nine Inch Nails20. Flickr/A smile a day keeps the pain and the doctor away/Zitona21. Flickr/an old design 02/Hector22. Flickr/Apple Retail Store Fifths Avenue/Víctor Martín23. tfaltings.de - Lena Meyer-Landrut24. Flickr/The rough strength & the law sense . ./Joël Evelyñ & François25. Flickr/Retro Texture/Sarai