The impact of new media technologies is just as evident, if not more, in the music industry than any other. These rapidly advancing technologies have not only influenced the way in which the music industry functions, but has also spawned entire genres of music and surrounding subcultures, being used in facets such as instrumentation, composition, recording, and distribution. The extreme rate of consumption that has become a defining characteristic of present society in the western world is also reflected in the music industry. This need and demand for instant information and entertainment is catered for by these new media technologies in the form of the Internet and its virtual limitless wealth of information. Arguably, one of the Internet's facets to have the biggest impact on the music industry is file sharing and peer to peer technology, a legally and ethically controversial technology that allows users free access and distribution of music. The use of such technology is shrouded not only in established laws and declining profit margins, but is also confronted with legal elements of interllectual property ownership, copyright, and the freedom of consumers. By observing relevant ethical issues and artist involvement in these technologies, the legal issues of file sharing and peer to peer technology within the music industry can be identified, and also analysed from a musician's perspective.
Music file sharing uses a technology that has been called MP3, which encodes and stores recorded sound in a way that takes up very little computer space. The relatively minute size of MP3 files allow them to be easily transferred and downloaded over the Internet. The quality of sound is also retained in MP3 files, with tracks of CD standard being downloadable in a matter of minutes (Shuker, 2001). It is this convenience and accessibility that has led to file sharing organisations such as Napster being confronted with many legal issues from recording artists and major record labels concerned for intellectual property rights, and the possibility of lost royalties.
With the introduction of file sharing technology there has been considerable debate over its various social, economic, and cultural implications. From the point of view of the consumer, MP3 and file sharing technology allows for incredibly easy and free access to music from almost any location in the world, enabling us to selectively compile tracks to create CDs without having to pay for entire albums. For major record companies, file sharing technology bypasses their traditional authority of the distribution of music and also poses a threat in regards to possible lost royalties due to free downloads of music instead of purchases. From the point of view of the artists, file sharing technology can be a double sided sword. The nature of the Internet means that file sharing enables world wide distribution of their work, regardless of whether or not they are signed to a record label. This global access to music that once relied purely on local word of mouth represents an opportunity for promotion and online niche targeting, through links and banner advertising. However, copyright protection is a major concern, and artists also risk infringements to their intellectual property rights by distributing their music through file sharing.
Perhaps one of the most prominent names in music file sharing was Napster, a free piece of software that enabled users to upload and download MP3 files of their favourite artists. Along with a similar site, MP3.com, Napster was sued by the Recording Industry Association of America in 2000 for copyright infringements, an example of the legal controversy surrounding this technology. Some artists even retaliated to file sharing personally. An example of this includes the actions of rock band Metallica, which hired online company PDNet to observe and monitor Napster’s usage over several days (Pizzo, 2000). The main concern held by the major labels and certain artists was the threat of this technology on royalties and record sales, and in response they formed the Secure Digital Music Initiative, an attempt to establish legislation and online standards that would provide copyright holders with more control over the distribution and access to their work (Shuker, 2004). Other legislation has also been introduced that targets the online companies, rather than the users and music fans themselves. US Senator Orrin Hatch introduced the Inducing Infringement of Copyrights Act in order to protect the users of file sharing and peer to peer technology, and to target the companies themselves that are attempting to make profit.
Despite the ongoing legal and ethical debate surrounding file sharing technology, many major label music companies are beginning to accept its convenience and popularity, utilising the technology on artists’ websites and providing fans with song samples and entire downloadable albums that can be purchased online with a credit card.
The rate at which we consume information and entertainment has perhaps ensured the place of file sharing, MP3, and peer to peer technology in the music industry, with further technological advancements deciding its new innovations and controversial developments.
By Emma Chow
Peer-to-peer file sharings increasing popularity has triggered an especially heated debate [against this process] from the record industry. Issues voiced are predominantly the notion of intellectual property. However, the fine print in the record industry’s provided problem is centred on the loss of sales and therefore profit for the respected organisations. For this reason, music file sharing effects in relation to business focuses not only on the industry as a business, but also on the artists’ and their publics. Emma Pi-Hui Chow 00:19, 10 Sep 2004 (EST)
In understanding the scope of effects music file sharing has on businesses, an examination of the following [five] is imperative. Implications for the artists' includes the idea of intellectual property; an idea tirelessly campaigned through record industries. Since record industries [especially in the United States] have acted as the catalyst along with some artists in the fight against piracy, the study of the implications on the record industry is vital for it provides the backbone information on music file sharing in relation to business. Technological advances have witnessed dynamic changes in the consumption of information. For this reason, an understanding of consumer access in the new economy is required. This will aid in the comprehension of the foundation for music file sharing. Henceforth, the need to understand the legal aspects over the notion of intellectual property; important for it is constantly used as the foundation of the industry’s argument against peer-to-peer file sharing (ARIA, 2004). In effect, the once leading file sharing service, Napster, is important to understand for it pioneered the file sharing process and was in the midst of countless lawsuits. Emma Pi-Hui Chow 00:23, 10 Sep 2004 (EST)
Known for its pioneering work in music’s peer-to-peer file sharing, Napster only had limited time in the practice of music file sharing (Hamilton, 2003). This was as a result of the inundation of lawsuits filed against the company and thus finding the service to be functioning in an illegal manner (Hamilton, 2003). However, their existence and practice has paved a new path for file sharers. Thus, the effects of Napster continue to be relevant in the file sharing phenomenon. The concept introduced by Napster continues to be paramount in current society. Not only did Napster revolutionise the way in which information can be transmitted, but it also affected the way in which information could be consumed (Kover, 2000). Papers in the United States have reported the loss in record sales. It is, however, important to note the process in which such data were collected and under which circumstances to validate the use of these findings. The impending introduction and working of Freenet (Cohen, 2000) is a looming problem for [record industry’s] business.
Different countries and states in the world have different laws in dealing with copyright. In terms for the record industries, this is news can be accurately classified as unwelcome. The purpose of Freenet (Cohen, 2000) is anonymity for users and ultimately, freedom of speech. In terms of impending lawsuits, this will be extremely difficult for no one own's Freenet. In the United States, plans have been implemented between record industries and colleges and universities. The purpose is to educate and inform students on the whys and hows peer-to-peer file sharing equates to piracy (RIAA, 2003). Unfortunately, in this fight against music file sharing, record industries have only consistently shown that the underlying problem is profit. The lengthy argument on loss of profit is described to not only hurt record industries, but artists aswell; in terms of intellectual property and the deserving royalties (RIAA, 2003). It becomes increasingly interesting when the music industry itself is divided on the effects of music file sharing. On the one hand, artists appreciate the wide audience which can be received, however, the issue of profit is notoriously greater as seen through the media. Emma Pi-Hui Chow 00:50, 10 Sep 2004 (EST)
The purpose of business is generally acknowledged as an industry aimed at making profit. In effect, money plays a pivotal role. When Napster entered the scene and changed the way in which music was consumed, it is argued that this greatly affected music. Whether or not Napster’s introduction aided or hindered the record industry, their innovative idea indeed added an extra dimension to the uses of the internet. The problem for businesses, however, arose when these services were free. Record industries believe this to be a form of stealing (RIAA, 2003), and along with some artists, the issue of intellectual property was and continues to be discussed at length. This included the greatly debated notion of copyright infringement.
The issue of [questionable] loss of revenue and record sales was constantly raised by the record industry which in effect, impacted legislation. This was especially evident in the United States. Although the downfall of Napster did occur, the 'damage' was already done. The popularity of peer-to-peer file sharing signals consumer preference and change in music consumption. The notion of access and instant gratification in this new economy is not only evident but crucial in comprehending the popularity of music file sharing, and thus its effects on businesses. In relation to business, although Napster has been contained with the help of the law, the emerging Freenet (Cohen, 2000) appears to pose a greater threat on intellectual property and copyright infringements for it is a site owned by no one and everyone. Emma Pi-Hui Chow 01:05, 10 Sep 2004 (EST)
The question lies not only in how music file sharing effects on business [operations], but also on why this is so. Evidently, current society has shifted to one where instant gratification is central. Thus, this has perhaps triggered the popularity of file sharing. In terms of business, this can be viewed as either an opportunity or hinderance, depending on the individual's interpretation. Emma Pi-Hui Chow 11:29, 10 Sep 2004 (EST)
Music File sharing has been the focus of many arguments of late. These arguments have focused on the users ability to download and distribute music freely and the music industries right to protect their copyrights. Very rarely do these arguments focus on how these new technologies such as Napster and Soulseek have transformed cultures and created identity.
Music File sharing has been a topic of fervent discussion as the “popular music industry is a creative industry that exemplifies both the complex industrial dynamics that produce layers of intermediation, and the significance of technological, economic, and cultural forces� (Flew, 2002).
MP3 technology is the main technological advance, which started the file-sharing phenomenon. MP3 is a compression style developed by Moving Picture Experts in Germany. Used to compress WAV files this compression kept the original quality whilst only using about one tenth of the original size. The selling point of the MP3 over previous mediums such as tapes and records and CDs is they reproduce music digitally. Whereas these older technologies translated the ridges and grooves on medium into music, MP3 technologies translate these ridges and grooves into algorithms of ones and zeros. This meant that music could be stored and created much more efficiently. It also meant that files were now easily transferable. Unlike previous technologies this revolution had a clear advantage, cost. MP3 converters could be used free of charge to copy CD’s, Records and any audio technology.
The MP3 format was created in 1987 by 1999 Shawn Fanning a Boston Student had created Napster. This was unique to other MP3 sites at the time as it allowed users to use a program to share amongst each other rather than downloading directly from the site. Napster was spectacularly successful "Napster had unleashed the music nerd in a supposed 65 million users. With an incredible 300,000 new users signing on everyday, Napster became the biggest single user-community the Internet has ever seen in its short and surprising life" (Wakelin 2001)
People had shared music before, but not with this amplitude. Previously consumers had made tapes for one another, swapped records and shared dialogue in zines, fan clubs and concerts. Along with MP3’s fans trade “information, gossip, pictures and opinions�(Flew 2002) John Fiske terms this “alternative cultural capital�(Fiske 1992). This was now occurring all in the same place in mass numbers. These former incarnations of music dialogue serve as the groundwork for understanding the relationships and subcultures, which are formed in these online music communities.
The use of these file sharing programs has created new opportunities for the formation of cultural identity “Traditional sources of identity - like those of the 'neighbourhood', local communities, and the nation-state - are transformed into new intermediated social groups� (Cooper and Harrison, 2000) These identities are based on attributes unique to new media technologies such as library size, bandwidth and user generosity.
File sharing has also increased the amount of music consumers that existed and increased the ability for consumers to find music that is unique to them. As consumers drive file sharing, niche music, which is traditionally ignored by the record labels, is freely available on a server. “Percentage of sales that online retailers show for so- called 'marginal' music: jazz and blues may account for 2% or 3% of high street sales, but on the Internet it's more like 20%-30%�(Cook, R. 2003)
Groups such as the Record Industry Asscociation of America constantly tell file Sharers that downloading music is stealing. Despite the many different moral and ethical standpoints regarding illegal downloading, consumers continue to disregard these warnings and download music for which they don’t own and did not pay for. Like it or not consumers are making a political stand. By downloading illegally in mass amounts they are creating the social norm.
For the Record Industry it means the loss of a stranglehold on their copyrights. For artists it means the possibility of disintermediation. Artists can now work towards the goal of being directly linked with their consumers. This gives artists the ability to remove the ‘middle men’. This empowers the artist to individually manage and distribute their own music, and increase their earning power.
The development of file sharing has created many social consequences. From the formation of new cultural identities to the greater freedom available for artists and consumers.Elliott franks
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