Napsters Technology example essay topic
The company, who was financed by venture capital firm Hummer Win blad, totaled $0.0 in sales for 1999. Napster Inc, however, is currently exploring ways to utilize their over 35 million users in order to turn a profit. Napster can be accessed from any computer with Internet capabilities, allowing the user to download virtually any song. This technology does not only threaten the recording industry, but also any other industry that involves the sale of intellectual property. One might speculate that the publishing and the movie making industries are next in line to fall victim to file sharing. It would be in the best interest of both Napster and the RIAA to reach some agreement.
A federal court ruling allowing Napster to rema i in business will only hurt the consumer. Record companies will be forced to protect themselves, which could, for example, lead to the introduction of copyright protected compact disks. This would make it impossible for new music to be copied and distributed over the Internet. In addition, the increase in production cost would, in turn, cause CD prices to rise, thereby hurting the consumer. While the technology pioneered by Napster is potentially harmful to the United States economy, this does not mean that it should be prevented from being used. If the RIAA and Napster come to an agreement, then file-sharing technology could prove to be profitable for all.
Just as television and radio are profitable because of tremendous amounts of money generated through advertising, the free distribution of music over the Internet could do the same for record companies. The Internet has already proven to be extremely profitable for companies such as all advantage. com, whose profits come solely from advertising. Through great amounts of money made through advertising, services such as Napster could pay artists and record companies for the rights to their music. In conclusion, Napsters technology should be carefully embraced. In other words, rather than destroy the record industry, Napster should include it. The RIAA would be smart in striking a deal with Napster.
Technology is moving at such a rapid speed, that the industry can only stay profitable if they choose to move into new markets. With the overwhelming popularity of Mp 3's, it seems as though Internet distribution is the future of the music. The record industry can choose to evolve, and profit from advancements made in technology, or they can fight technology and stand to loose.