E-commerceG1-C1 P2P

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E-commerceG1-C1 P2P

  1. 1. Group 1 Proudly present… P2P NETWORKS Music ROCK, Rolls. Industry
  2. 2. Agenda • P2P Definition • Evolution of P2P • Case Study Question and Answer Agenda • P2P Definition • Evolution of P2P • Case Study Question and Answer
  3. 3. History of file sharing • Single Server – Upload file to server – Server overload and limitation of Bandwidth – Whole file only – Separate not work • Multiple Server History of file sharing • P2P – File Directly send from client to client – Less load on Server – No bottleneck
  4. 4. Agenda • P2P Definition • Evolution of P2P – Napster – KaZaa – Bittorrent • Case Study Question and Answer Napster The first world champion of free music downloads
  5. 5. History • Founded in 1999 by • at age of 19 !!! Shawn • Specialized exclusively in Fanning music in the form of MP3 files • Presented a friendly user- interface Sean Parker History • In February 2001 the program hit global use by 26.4 million users
  6. 6. How the old Napster worked? • Friendly user-interface and easy to use just – Opened Napster Utilities – Search for the song you wanted – Napster Index Server provided the list of the Napster client which had that song – Click “Download” How the old Napster worked?
  7. 7. Legal Challenges • New songs leaked in Napster network before they were released • Filing a lawsuit by – Metallica – Dr. Dre – Madonna – Etc • A&M Records and others sued Napster in 2000 Legal Challenges • Napster lost the case • Could continue its business with non- infringing uses • Shutdown its service in July 2001 • Bankrupt in 2002
  8. 8. Here and Now • Acquired at bankruptcy auction by Roxio, Inc. • Purchased by Best Buy, Inc. at $121 million • Business Model Changed – Get Free Stream songs up to 3 times each – After that (if you like that song) you have to • Purchase the track Or • Subscribe with Napster – $5 Gets You 5 MP3s and Unlimited On-Demand Streaming Music Here and Now
  9. 9. What is Kazaa? Kazaa is a peer-to-peer file sharing application using the FastTrack protocol and owned by Sharman Networks.
  10. 10. How was it used? • Kazaa is commonly used to exchange files – MP3s – Videos – Applications – Other documents Difference from Napster • There is no single list from single server. • It used Fast Track Protocol.
  11. 11. Against the law suite RIAA filed Court Order Napster Court reverse lawsuit To filter was ordered an earlier against 261 Copyright to shutdown judgment individuals content 2001-Jun 2002-Mar 2003-Feb 2005-Sep 2001-Mar 2001-Nov 2002-OCt 2004-Feb Kazaa Consumer Sharman Sharman was founded Empowerment was sue was used was sued in LA. in Australia by Dutch Against the law suite
  12. 12. Bittorrent • Protocol • Developed by Bram Hohen (2001) by Python – it has been estimated that it accounts for approximately 27-55% of all Internet traffic (depending on geographical location) as of February 2009
  13. 13. Bittorrent Concept – Solve Problem about inequality speed of upload and download & Server overloaded – File Separation, Parallel Download. • Idea from “MojoNation” : split a single file into pieces – Motto : Give and ye shall received • Seeder : Original Source, Upload Only. • Leecher (Peer) : Sender(Upload) and Receiver(Download)
  14. 14. Bittorrent Conponent • Client : Tracker Client Program • Server : Collect Torrent File & Tracker – Close System • Member / Ratio (Upload / Download) – Open System • Torrent File
  15. 15. Advantage / Limitation • Advantage – Higher Speed – Enable to transfer bigger file • Limitation – Speed depends on No. of peers – Problem with streaming file Why They can’t sue Bittorrent? • if it can be used for legal purposes. BitTorrent passes that test, says Fred von Lohmann, a lawyer at the Electronic Frontier Foundation, because Linux groups and videogame companies regularly use it to shuttle software around the Net. "That puts Bram in the same situation as Xerox and its photocopiers.”
  16. 16. Agenda •P2P Definition •Evolution of P2P •Case Study Question and Answer Case Summary: P2P Networks Rock • Court battle: MGM Studios, Inc. v. Grokster, Ltd. – June 2005: The U.S. Supreme Court unanimously concurred that Internet file-sharing services such as Grokster, StreamCast, BitTorrent, and Kazaa could be liable for inducing copyright infringement. – Business model: Steal the music, gather a huge audience, and monetize the audience by advertising • Legal victory!!! but do not solve problems facing the music industry…WHY??
  17. 17. Case Summary: P2P Networks Rock • Downloading legal music • Business growth 50% per year since 2006 • Not strong enough to compensate for the plunging CD sales • Not downloading entire albums • Downloading illegal music: • Using file-sharing P2P networks • Younger people • Falling CD sales revenues Question from case
  18. 18. Question 1 • How can P2P file-sharing networks make money if they do not sell music? – Direct • Sell movie online (e.g. www.cinemanow.com) – Indirect • Provide the download service for online game and earn from Air Time • Sell advertising on the sites • Distributed Software for advertisement to peer PC directly Question 1 • How can P2P file-sharing networks make money if they do not sell music? – Indirect (cont.) • Member fee for Bittorrent website. • Bittorrent Broadcaster. • Cohen get Donation by followers. • Another Service like Colo
  19. 19. Question 2 • Into which category or categories of e- commerce do P2P file-sharing networks fall? Anything of file that the vendors would like to sell such as; – Books – CDs/DVDs – Application – PC Game Question 3 • What social issue are raised by P2P file- sharing protocols and programs such as BitTorrent? – Pornographic Film/ Movie – Piracy of Intellectual property – Privacy/Cultural – Change in Consumer Mind-Set & Behavior – Change in business model/ business strategy – e.g. U2: Free music and revenue comes from concert and others.
  20. 20. Question 3 • Is the record industry justified in attempting to shut them down? Why or why not? – Yes: • P2P file-sharing protocols/programs lead to loss in revenue. • For long term effect: Investors might not be interested in this business. • A disaster for artists (loss of income), consumers (loss of platforms the music industry COULD develop), and society (loss of jobs, artists). • the proposed policy to disconnect file-sharers from the Internet; however, this couldn’t be done since the technology itself is legal Question 3 • On the other hand, creativity and quality of work might be improved to handle with the loss of income crisis
  21. 21. Question 4 • Will the supreme court’s decision inhibit the development of P2P technology or the internet itself, as proponents of P2P services have claimed? Not prohibited - The concept behind file-sharing is totally legal - But a the same time sharing copyrighted material is illegal - Sharing file without the permission of the copyright holder is against the law Question 5 • Why do people older than 21 tend to use legitimate downloading sites whereas younger people tend to use illegal sites? – Income/ Credit cards issue – Ethics/ Legal issue – Kid/Teen Convenience Lifestyle (Youtube and MP3 file sharing)
  22. 22. Question 6 • What difference would it make if the existing music labels disappeared for lack of revenue? – No big company – Deficit/ bankruptcy – Business will change business process. • Cross functional business • Targeting revenue from Brand Identity, Souvenir, Performance ticket rather than selling the CDs – Long tail artist e.g. Increase in Indy artists Question 6 • What legitimate function do the music labels perform in the creation and distribution of original music? – Sample music/Teaser w/o protection as a part of promotion tool and creating a “buzz” with no financial cost – Targeting revenue from Brand Identity, Souvenir, Performance ticket rather than selling the CDs e.g. U2: Free music and revenue comes from concert and others.
  23. 23. /*Anin /*Porntip Purnasugandha*/ Wijitrattanachai*/ /*Bordyn /*Sun Cheevatanakonkul*/ Kunawattanakorn*/ /*Charlie /*Sedtha Pongsangangan*/ Jittiarunchai*/ /*Kanokwan Lorattanareaungkit*/ The End See you again at Final Project

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