1) The document discusses the rise of peer-to-peer (P2P) file sharing networks like Napster in the late 1990s/early 2000s, which allowed users to easily share and copy music files. 2) The recording industry saw this as a threat and sued Napster for copyright infringement, eventually shutting it down. However, new decentralized P2P networks like Gnutella emerged. 3) While P2P networks provide benefits to consumers and could be profitable if legal, the major Hollywood studios have resisted embracing digital distribution and instead promote centralized, licensed services to maintain existing business models.