Nowadays, online music is more popular than before. The Peer-to-Peer online music that was used by Napster became a huge legal barrier to this company up to closing down their business. New Napster's owner, Roxio, has been trying different strategies to cover increase their revenue and customers again. There are different strategies for Napster to increase its market share in this market. This report will provide few strategies that would be efficient for Napster to compete with their competitors specially Apple and Rhapsody.
Reputation!
In today's market is has becoming increasingly important for organizations to posses a strong brand name and reputation. People everywhere recognize Napster. Why? Because it was the first company to
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Napster needs to focus their efforts on media awareness to have their name become top of mind. Moreover, their partnership with many of the companies in the industry provides Napster with many venues to have its name well recognized. Target Market!
Napster has to focus on the primary target market first and then the second target market. The first target market is the current Napster's customer, young people and the second target would be the competitors' customers and elder people. It is important to know where the customers from and what characteristics they have. Napster can buy customers' habits and preferences by providing unique services (which will be explained in this report) to these customers. Hence, these customers would shift from using other competitors' services to Napster for having better service or gaining some benefits from Napster that they could not gain somewhere else.
Services!
With the decline in illegal file sharing, there is an opportunity for Napster. They need to find a way to tap into the new market of people making the shift to legal downloading. Perhaps, offering incentives to new users/members. Offering a small number of free downloads or offering a free trial of XM radio provides more incentives for a customer to venture out of what they know and try something new. Because iTunes already has strong brand loyalty and much importance within that
What Napster actually does is provide access to nearly every recording anyone oculd want. Napster has not copied or accumulated any of the recordings available from it; it simply helps people to seek the music that they want. It has music available that may not be available anywhere else, and it offers instant connection. It allows someone to listen to a song and check out the artist before spending eighteen dollars on the CD. It is like a "library," where everyone connected "shares" songs with one another. Artists, such as Metallica, who sued Napster, believed their songs were "being given away and the 'library' as ill-gotten pirate booty."
This case study about the Spotify business model allows a broader vision of what the digital music industry is. In a short time, many companies have developed and managed marked their territory in a highly competitive industry. The start-up Spotify has undergone a remarkable evolution in a financial point of view but also in terms of its popularity. Its various competitive benefits regarding the market leader and its respect for music labels have enabled the company to be renowned and to have a reputation in the real business. Today, five years after its creation, Spotify is certainly criticized in some aspects of
First, it is important to discuss the direct, contributory and vicarious infringement claims against Napster. Direct copyright infringement claims are based on a breach of a copyright owners’ exclusive rights to the copyrighted work(s). A&M Records, Inc. v. Napster, Inc., 239 F.3d 1004, 1013 (9th Cir. 2001). Napster was found liable for this because the users used its platform to upload and download copyrighted music, thus infringing on two exclusive rights: reproduction and distribution. Id at 1014. Contributory copyright infringement claims are based on secondary infringers who have either actual or
Napster provided users of the system with a platform to facilitate the transmission of digital forms of music files, called MP3 files. Napster’s platform primarily facilitates “peer-to-peer” file sharing, which allows users to present MP3 files stored on their personal computer to other users looking to copy the file, search for particular MP3 files, and transfer
In 1999, three young men who were passionate about computer programming created a website that would bring an entire industry to its knees. As the three boys, Shawn Fanning, John Fanning, and Sean Fanning, worked hard on their project, they could’ve never imagined that their invention, a peer to peer music file sharing service called, Napster, would effectively revolutionize the way an entire generation created, delivered, and received its entertainment. Since then, the internet, file sharing, and the music industry has changed drastically. Since Napster’s invention in 1999 we’ve had millions of different similar services come about such as iTunes, Rhapsody. Roxio, YouTube, Spotify and NoiseTrade. Napster’s creation and then subsequent demise in 2002, sparked a controversy that still exists today, the effects of music downloading on music industry revenue.
In Napster’s early form of p2p sharing, I do believe that shutting down the company was the most appropriate choice. People who were complaining and saying that file sharing was fair use believed that CDs cost too much and rich music artists didn’t need all of the money (Mayer, 2008). But the fact of the matter is, unauthorized downloading is theft and is considered completely illegal. When users illegally download music they are violating the terms of licenses and rights granted by specific record companies (Go-Gogh, 2000).
According to the text A Gift of Fire, Napster “opened on the Web in 1999 as a service that allowed its users to copy songs in MP3 files from the hard disks of other users” (Baase, 2013, p. 192, Section 4.1.6 Sharing Music: The
Napster was a music sharing software that was shut down because of copying and distributing unauthorized MP3 files that violated the United States and foreign copyright laws. One of the major reasons why Napster was shutdown is
The issues that will be slugged out in federal district court in San Francisco sound a little too pop culture to be all that serious. How many music CDs are people buying these days in record stores throughout the nation because of Napster? Is the technology that Napster uses legal? Napster is, of course, the wildly popular file-sharing service whose 20 million users have downloaded some half a billion songs--most copyrighted for free. The technology that Napster has brought to music listeners across the globe has allowed the freedom of obtaining music for free and should not be shut down by the entertainment industry's argument in federal court.
In 2000 the digital music was the next big thing in how consumers listen to music. The technological shift in music changed how the relationship is between the artists, recording companies, promoters and music stores on how they operate today. In the late 90’s and early 2000’s Peer-to-peer (P2P) networks allowed free exchange of music files with companies like Napster and Kazaa was a big step that allowed consumers to store large libraries of music. With the cost of hard drive space going down; it allowed for pocket-sized computers to store more information in a smaller space that open the door for apple to step in with the unveiling of the iPod and iTunes. These systems made it possible for storage and playback that gave consumers the
Over the past decade, the use of CDs has been replaced with online streaming and retailing. This has eliminated much of the record companies revenues as they were used to making most of their profit off of distribution and promotion of physical copies of artists albums (Niemen). This has caused for a major shift and remodeling of major players in the music industries business models. Companies such Sony, Warner Music Group and Universal Music Group have started to completely rethink the way they conduct business (Forbes). In the past record labels were not only responsible for production, distribution and promotion of an artist and his/her music, but they also acted as a bank (Forbes), funding the artists tours and recording sessions. Recently, these music giants have been moving towards becoming more of a modular network organization. What this means is that they are less occupied with the nitty gritty, and more focused on what they do best which is distribution and promotion. This also allows for more freedom of creativity for the artist as well as fairer split of profits (Forbes). This adaption of new business models clearly shows the versatility of the music industry in adapting to new times and technologies.
First, it is important to discuss the direct, contributory and vicarious infringement claims against Napster. Direct copyright infringement claims are based on a breach of a copyright owners’ exclusive rights to the copyrighted work(s). A&M Records, Inc. v. Napster, Inc., 239 F.3d 1004, 1013 (9th Cir. 2001). Napster was found liable for this because the users used its platform to upload and download copyrighted music, thus infringing on two exclusive rights: reproduction and distribution. Id at 1014. Contributory copyright infringement claims are based on secondary infringers who have either actual or
Introduction: Setting the trend for the future, the distribution and consumption of recorded music transformed dramatically with the launching of Apple’s iTunes in 2001. The proliferation of online music subscription services and other music sharing services exerted a great pressure on the conventional music distribution business model. Combined with this transformation, piracy of digital music had a profound impact on the whole industry. These worsening conditions in the market place for recorded music forced both established and upcoming new artists to experiment with new ways of selling their music.
Digitalization, data compression, and the internet have affected the music industry significantly. These technologies have shifted the recording industries from hard-copy recordings to digital music distribution. This has made it easier for consumers to enter the music market through copying. Consumers have access to copying technology that allows them to obtain music without paying the record label. The situations clipped high in 1999 when Napster, a file-sharing service was launched. The service facilitated music file sharing on a wider scale. The consumers just download the music and transfer it to a digital music device. This has negatively affected the trade value of music sales, for instance in
There are types of music that can be downloaded on the computer. Napster, which can be downloaded at Napster.com, is a program that music can be found. The music is kept in a library and just a double click on the mouse lets one hear any song downloaded. These songs can be found with either the title or the artist of the song. I feel that Napster has a good thing going with the free music. However, I feel that it shouldn’t be completely be free. The artists of the music are loosing out on a lot of money. A solution to this problem could be that songs could not be downloaded to the Napster program until the record had made a certain amount of money. Although, right now Napster is in court trying to compromise on a decision that will make everyone who uses Napster, everyone who created Napster and the artist of music happy.