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Essay on Napster: From Illegal Weapon to Killer Application

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Amidst the hot debate about whether or not music should be free, are ethical and moral considerations as well. The emergence of digital entertainment, whether MP3, peer-to-peer (P2P) applications, video streaming, or audio books, has caused an inevitable shift in the entertainment market (Weiss, 2006). Napster rapidly became a success when it started allowing its customers to download MP3 music free of charge. In fact, Napster’s form of file-sharing shifted the entertainment market from a commodity base to a service base by eliminating cost to the customer. This paper will discuss the major issues in this case study, who the key stakeholders are and how they have changed since Napster’s beginning, what the stakes were for the different …show more content…

In fact, Napster’s only concern was to provide a service to anyone and everyone connected to the Internet who was searching for music. So by 2001, Napster had lost its fight in court against the music industry causing its free music file-sharing services to be shut down (Weiss, 2006). However, the company eventually changed its ways and decided to work with copyright holders to avoid legal issues. Nonetheless, Napster’s first incarnation still failed to adequately consider all relevant stakeholder. It did not address the rights and interest of artists and other companies in the recording industry, or focus on protecting its users (Weiss, 2006). But, the reincarnated Napster seemed to have learned its lesson regarding protecting its stakeholder’s rights. The reincarnated Napster was now focused on subscription music sales, and doing a better job of balancing the financial interest of the artist, producers, and songwriters, while still considering the fair use of rights of consumers (Weiss, 2006).
However, the new Napster was having difficulty holding on to subscribers because of other online music store rivals such as Apple’s iTunes Music Store and Microsoft’s MSN Music Store (Weiss, 2006). There are several reasons why Napster was unable to succeed in the marketplace. First, Napster’s reputation created skepticism about its ability to be a key player in changing the music industry in a positive way. Apple was setting

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