How Illegal Downloading Affects the Record Industry Alex Maio Section 614
What is illegal downloading? <ul><li>Illegal downloading refers to sharing music online without record industry consent </...
Brief History <ul><li>File sharing is one of the original applications of the internet </li></ul><ul><li>music sharing bec...
Animation – napster icon (swirling) – computer hacker (dribbling like a basketball)
P2P Emerges <ul><li>P2P means person to person </li></ul><ul><li>This means there is no need for a central tower for the s...
Continued… <ul><li>Bands like Radiohead support music sharing (they put their concerts online for free downloading) </li><...
Pro-sharing Arguments <ul><li>Some music fans claim they buy enough cd’s and players to support artists and use sharing to...
Anti-Sharing Arguments <ul><li>Sharing does not create revenue through royalties and ultimately hurts the artist </li></ul...
Statistics <ul><li>From year 2000 – 2002 CD shipments dropped from 940 million to 800 million (15% decrease) </li></ul><ul...
<ul><li>The debate goes on but there is still no clear answer </li></ul><ul><li>It is difficult to say cd sales are strong...
The End
Works Cited <ul><li>CD sales down in 2005, but downloading on the rise .  8 January 2006. </li></ul><ul><li>Quad City Time...
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musicdownloading.ppt

  1. 1. How Illegal Downloading Affects the Record Industry Alex Maio Section 614
  2. 2. What is illegal downloading? <ul><li>Illegal downloading refers to sharing music online without record industry consent </li></ul><ul><li>Popularized with the advent of mp3 compression </li></ul><ul><ul><li>Mp3 technology was invented in the late 1990’s to reduce the size of digital music </li></ul></ul><ul><ul><ul><li>Mp3 files are small enough to transfer online very quickly </li></ul></ul></ul><ul><li>Online music downloading became a revolution in acquiring music </li></ul>
  3. 3. Brief History <ul><li>File sharing is one of the original applications of the internet </li></ul><ul><li>music sharing became popular with the mp3 </li></ul><ul><li>Copyright laws got sharing sites into legal disputes </li></ul><ul><li>When users looked for new ways to share music they turned to transfer capabilities of chat protocol like internet relay chat (IRC) </li></ul><ul><li>In 1999 a college programmer named Shawn Fanning revolutionized the sharing industry by creating Napster </li></ul><ul><ul><li>Napster was the first application designed specifically to share music over the net </li></ul></ul><ul><ul><ul><li>Easy to use, had a huge storage catalogue, and could download without intermediate hosting </li></ul></ul></ul>
  4. 4. Animation – napster icon (swirling) – computer hacker (dribbling like a basketball)
  5. 5. P2P Emerges <ul><li>P2P means person to person </li></ul><ul><li>This means there is no need for a central tower for the site and no information on servers </li></ul><ul><li>All music and files were on client’s computers </li></ul><ul><li>Created a huge difficulty for shutting down p2p </li></ul><ul><li>Programs like Kazaa, Limewire, and Morpheus are p2p </li></ul><ul><li>Over 60 million Americans above age twelve have downloaded music </li></ul>
  6. 6. Continued… <ul><li>Bands like Radiohead support music sharing (they put their concerts online for free downloading) </li></ul><ul><ul><li>They believe it gives there upcoming audiences greater chances at knowing words to sing along at the concert </li></ul></ul><ul><li>Small artists support their music on p2p and other music sites because it can create more fans and possibly get record label recognition </li></ul><ul><ul><li>Sites like myspace and purevolume create publicity, communication, and a venue for record industry scouts </li></ul></ul><ul><li>Some artists believe file sharing will assist in record sales </li></ul>
  7. 7. Pro-sharing Arguments <ul><li>Some music fans claim they buy enough cd’s and players to support artists and use sharing to preview cd’s </li></ul><ul><ul><li>They eventually buy what they like because they enjoy the aesthetic value of cd artwork, lyrics, etc. </li></ul></ul><ul><li>Some people believe sharing helps promote fan base for bands </li></ul>Uber Hackzorz!!!
  8. 8. Anti-Sharing Arguments <ul><li>Sharing does not create revenue through royalties and ultimately hurts the artist </li></ul><ul><li>Sharing is illegal because people are bootlegging copyrighted material </li></ul><ul><li>Loss of revenue through CD sales will result in business losses, loss of money for more recordings, equipment, and less money for artists </li></ul><ul><li>Rock Band Metallica pioneered the battle against music sharing against Napster </li></ul><ul><li>Some record companies have put copyright protection on their products to prevent CD ripping </li></ul><ul><ul><li>Example: Sony’s Key2Audio </li></ul></ul>
  9. 9. Statistics <ul><li>From year 2000 – 2002 CD shipments dropped from 940 million to 800 million (15% decrease) </li></ul><ul><li>From years 2004 – 2006 the number of digital music sold has dramatically risen from 16 million to 352.7 million (about a 194% increase) </li></ul><ul><li>What does this say about music and the internet market? </li></ul>
  10. 10. <ul><li>The debate goes on but there is still no clear answer </li></ul><ul><li>It is difficult to say cd sales are strongly affected by illegal downloading when the market is switching to digital music (cdbaby, itunes) </li></ul>Does Illegal Music Sharing Hurt CD Sales?
  11. 11. The End
  12. 12. Works Cited <ul><li>CD sales down in 2005, but downloading on the rise . 8 January 2006. </li></ul><ul><li>Quad City Times. 24 Oct. 2006 <http://www.qctimes.net/articles/2006/01/08/features/arts_leisure/doc43c0ae453d7b1087422770.txt> </li></ul><ul><li>Music fans rebel against greedy record industry . 26 February 2002. </li></ul><ul><li>Fox News. 24 Oct. 2006 <http://www.foxnews.com/story/0,2933,46557,00.html> </li></ul><ul><li>Musicians put new spin on the CD to boost sales . 10 October 2006. </li></ul><ul><li>USA Today. 24 Oct. 2006 <http://news.yahoo.com/s/usatoday/20061010/tc_usatoday/musiciansputnewspinonthecdtoboostsales> </li></ul><ul><li>Why I’ve stopped sharing music . 8 September 2003 </li></ul><ul><li>CNN.com. 24 Oct. 2006 <http://www.cnn.com/2003/TECH/internet/06/27/music.sharing.column/index.html> </li></ul>http:// www.youtube.com/watch?v =281e8Wy71o0
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