Economics And Riaa
Definitions:
Peer-to-Peer sites: Music sharing sights, such as Kazaa, which allow users to connect over the internet and share files with one another directly. The site acts only as a means for these users to connect with one another and share files, not as a source for downloading music. In this way, these sites are able to avoid any legal liability.
Licensed Commercial Sites: Sites such as Napster, which pay a fee to the RIAA in order to be able to allow users to download music. However, users are required to pay between $0.50 and $2 for each individual file they download.
Dial-up Connection: A connection to the internet through the use of a modem and a telephone line. Dial-up connections were the earliest method of connection to the internet, and had very slow download times.
Broadband Connection: A high-speed connection to the internet, making download times much faster.
Summary of Article:
The Recording Industry Association of America (RIAA) has been waging a legal battle over the past two years in an effort to prevent online music-sharing. The Association has been suing individual downloaders over the past year, with most of these cases being settled for $2,500 to $7,500. The strategy appears to have had a significant effect on the percentage of internet users that download music online.
In a report released by Pew Internet & American Life Project and Comscore Media Metrix on January 3rd, the percentage of internet users who download music has declined to 14%. This figure is down from 29% in May 2003. The survey does not distinguish between peer-to-peer sites and Licensed Commercial Sites. Usage of individual peer-to-peer sites fell as much as 59% from November, 2002, to November, 2003. The RIAA insists that these lawsuits continue to have a significant impact on awareness of internet users, and that the lawsuits will continue through 2004.
Despite the apparent success of the lawsuits, the...
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