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Title: The impact of online downloading on CD sales
Free music essay for art school students. This is a free fragment from music essay sample created by one of the writers of Essay-Paper.net. You are required to reference it properly if you use any of the parts of this music essay.
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The influence of digital technology on the sales of copyrighted goods is really significant. A longstanding economic item is the suitable level of protection for intellectual property. The Internet has dramatically lowered the cost of copying information goods. The effect of file sharing and online downloading on CD sales is studied in the most detailed way. The data presented in the paper allows to state that this effect was really great and influenced music industry and artists in particular. The case with the rock group Metallica that sued Napster for allowing people to download their music through the Napster software is mentioned too.
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Systematic file sharing started with Napster. After its opening in June 1999 (Shawn Fanning, 2000, p. 43), Napster quickly became famous among Internet users. The number of users grew unusually, and many music files were exchanged via Napster. It was undoubtedly the leading file sharing service until early 2001. Napster allowed its consumers to share a variety of personal songs, hence providing access to unbundled songs, as contrasted to bundled album, additionally providing the songs for free.
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After Napster emerged, the whole real value of record sales lessened by 5% in 2000, 6.7% in 2001, 9.6% in 2002, and 8.1% in 2003. As a result, the recording industry concluded that this fall was greatly a result of file sharing. The following legal action by the recording industry founded on these grounds came into closing Napster in 2001. File-sharing has turned into one of the most everyday on-line activities after Napster popularized it in 1999.
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File-sharing takes place in networks which allow people to share, look for, and download files from one another. The major property of these networks is that sharing files is greatly non-rivalrous because the primary owner retails his copy of a downloaded file. This makes the cost sharing rather low. Besides, there are network externalities, as more persons use a greater selection of files. These factors fueled the dramatic increase of file sharing, especially of copyrighted music recordings.
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The recording industry is meanwhile making considerable progress in creating an online music business. US-based services achieved downloads of 19.2 million in the second half of 2003. Online sales of physical CDs also went on an upward trend, with a growth in the US from 3.4% to 5% in total. The global music market was worth $US32 billion with total unit sales (including music video) of 2.7 billion. Music on audio formats fell 9.9% in value. A small portion of this loss was compensated by an encouraging increase of 46.6% in music video sales. Sales of CD albums around the world dropped by 9.1% in value, while sales of singles fell by 18.7%.
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