Music Trading

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Technology is making thieves out of good honest men (or women). How so? First, by allowing consumers to copy music to cassettes, to burn music on CDs and now through Peer-to-Peer Music Trading (downloadable music from internet). Many music listeners do not think that copying music is a crime, but music label moguls see it differently. The truth of the matter is that it's true. Copying music is stealing one's intellectual property and/or copyright holdings. Now technology has taken it to a different level. Music listeners can now download music from the Internet. As a result, Peer-to-Peer Music Trading is causing the record companies to face a major business problem in sales. Marketing Professor Peter Fader believes, while music listeners are getting music for free, music businesses are getting free publicity.

Peer-to-Peer Music Trading has become a major problem for the music business. But there has been an investigation that reveals differently. Peter Fader who wrote a paper entitled, " Using Advance Purchase Orders to Forecast New Product Sales," also wrote an article, "Peer-to-Pear Music Trading Good Publicity or Bad Precedent?" In his findings, he predicts that this type of trading would generate more publicity, which would generate sells. Record companies disagree with his statement. Fader says, ["Music downloading is a form of advertising"and that music companies should shift from making an album just a 'collection of songs' into making it a gateway to a complex, multi-layered entertainment experience."] http//knowledge.Wharton.upenn.edu/articles

While conducting this research, Fader used Greenfield, an Internet based marketing research company to design and implement his survey. Greenfield's received respondents through their Quick Take survey on digital music downloading. Greenfield also included conversations with academic colleagues, market research professionals from competing firms, viewed other citations and reports. Standard stratification techniques and randomly selected individuals demographically, along with the dimensions of age, gender and income were also used. Greenfield relied on benchmarking data from Forrester Research to choose an Internet-representative sample from its panel. 5,000 individuals that were representatives of U.S. Internet users took the survey. Gartners G's also had interesting findings. ["The spate of controversial music-business researchfrom Gartners G's report on online music service PressPlay .0 ("the most significant development in digital music in two years) to the usual harangue from the Recording Industry Association of America (sue the Internet!) reached its zenith last month with Forrester Research's "Downloads Save the Music Business," which predicts that downloads will generate $.1 billion for labels by 007] http//www.fortune.com/

The downside of Peer-to-Peer Music Trading has been scrutinized closely. According to the Recording Industry of America Association, albums sales have gone down to 10.% to 7% within the past two years. And in their findings through Webnoize, pirates downloaded .05 billion files a month from the top four sites in 001. Stanley Liebowitz, an intellectual-property expert stated that ["As it gets easier to burn a CD, you could see more of a negative impact on sales."] http//www.fortune.com. The Recording Industry Association of America study showed that by more than two to one consumers who are downloading are buying less; which proves why the 7.% drop in CD sales has occurred. According to Forrester Research, music downloads actually saves the music business. [Forrester found that even hard-core digital music down-loaders only plan to reduce their CD purchases by % in the next 1 months, and that the larger digital-dilettante sectors actually plan to increase CD purchasing] http//knowledge.Wharton.upenn.edu/articles.cfm?catid=4&articleid=65

So why are the sales going down. Forrester Research blames it on the recession.

It is true that Peer-to-Peer Music Trading has generated a buzz in the music business. The music file sharing software provider, such as, Napster, has generated a great number of young fans and powerful opposition in the recording and entertainment industry. Although,

Billions of shared computer files has passed through Napster, but did so at the expense of copyright holders.

I agree with Peter Fader when he states that music companies can make serious money online, by charging a monthly flat fee to have access to music and other benefits. As a writer, I would have to disagree, because the market cannot operate efficiently and rightfully to make music available to the music listener. This is where Congress would have to step in and determine how copyright law should serve the consumer's interest in the Digital Age.

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