An Economic View Of Napster Lawsuit Essay — страница 2

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availability of MP3s on the Internet had no impact on sales. Another Warner study in 1999 followed the release of a Tom Petty track in MP3 format on the Internet prior to the albums street release. The study concluded that the first week s sales of the new album were considerably higher than the first week of Petty s previous album, she s the one. The report recommended future free online releases of tracks before an albums release. Sales of CDs are at record levels, up 8% through May 2000 compared to the same quarter last year when Napster was not operating. Sampling Music before buying is also considered fair use. This can be seen in most major Record outlets where a sample of an artists record are on display and available to be heard. With NAPSTER come probably thousands of

artists that no longer have to wait for an agent, scout or label to pick them up so they can be heard. Through the Internet they will be able to become there own label no longer need the support of a big record company to get their music to an audience. This is already being done by all kinds of artists on the net, some even have there clubs online where you pay a fee to get in much like a cover at a bar and you get to hear the music of all the bands that are playing at that club that night. This does understandably have record company’s scared of going out of business. What would that be like? No record companies. A time where every artist is there own label and distributor. This would be good and bad on the economy in a variety of ways. The first would probability be the

retail end of the industry, they would no longer need the long aisle filled with tapes and CD’s instead they would be forced to make up the profits in selling blank CD’s for much less and selling MP3 software. This is a perfect example of Price equaling Marginal cost. Without an incentive to produce for a profit there is no reason to produce and that is what both artists and record labels are afraid of. The second would be the record companies, by not being able to sell the highly marked up CD’s they would have to become resourceful to survive. Finding ways to make money off CD’s or the software would be essential for the label’s to compete. The third would be the consumer, having the convenient songs ready to download to your computer at any time with any song would be

a major advantage of getting into it. People would no longer have to be deprived of music because of availability or cost. It would create so many more options for the people to expand their minds and intellect. It would also create a better relationship between artist and fan, the fan could visit there web page learn about the artists and send e-mail. The artists would also make more money by cutting out almost all of the middlemen and keeping the profits for themselves. Technology and music will have peaceful and profitable relationship with out the pressures of a label in the very near future. It will become a major source for getting music and listening to new artists in the future. In every instance in which new technology has arisen and threatened the interests of copyright

holders the law has always sided with the new technology and both parties have benefited from the outcome. The overwhelming public demand for the technology that Napster has brought to the public will demand to be reckoned with. The public demands convenience and access and even though the courts will decide, the public has already spoken. We want Napster. 34e