© 2005 UMFK. 1-1 Napster internet business models text and cases Jeffery T. Pelletier.

Slides:



Advertisements
Similar presentations
COPYRIGHT INFRINGEMENT C AROL K OTERMANSKI C HRIS I OFFREDA M IRKO A ZIS M IKE B OLSTER E THAN F RIER.
Advertisements

The Ethics Of Digital Music What Is The Future Of Copyright???
1 Downloadable Music Industry Ryan Herring Jinghua Luo Kevin Mack Shahram Rezaei.
MP3 Critics Web-Based Music Downloading Services CSCI 110 Dr. Bowring Matt Lyons Jarrett Bouchette Brittany Bridges.
THE AFTERMATH OF P2P NETWORK DOWNLOADS IN THE MUSIC INDUSTRY AND RIAA {THE NEW DIRECTION OF THE INDUSTRY}
How to thrive & survive as a public relations practitioner.
How to Pitch Angel Investors By Stephen Van Beaver 01/09/14.
Copyright or Copywrong. What is a copyright and what can be copyrighted? What is “Fair Use” and what four factors determine “Fair Use”? What are the two.
Anthony Bonanni. Introduction  Traditional way for artists to make money was by revenue from album sales.  Album sales are decreasing yearly.  One.
Shawn Fanning: Entrepreneur By Ramit Prasad Biographical Information Born in 1980 Family lived in poverty Raised in Brockton Oldest of 4 children.
© 2005 UMFK. 1-1 Priceline Webhouse Club internet business models text and cases Jeffery T. Pelletier.
The Anti-Piracy Campaign: The Drag Behind Their Efforts Jamal Haskin.
Steve Case: America Online (AOL) Emily Wainwright Computer Science 1631, Winter 2011 February 2, 2011.
Copyrights1 By Saud Al-Harbi & AbdulAziz Al-Shamrani.
Grokster Bart Wagner. Shut Down Grokster, which lost in the Supreme Court a lawsuit filed by Hollywood to stop illegal file sharing on peer-to-peer networks,
Filesharing and the birth of the digital music industry Liisa Benmergui DAP02S October 28, 2004.
© 2005 UMFK. 1-1 CNET 2000 internet business models text and cases Jeffery T. Pelletier.
Vs.. What was the issue? In 2000 heavy metal band Metallica was worried that their income was getting lower and there music was being pirated. They then.
Peer-to-Peer (or P2P) From user to user. Peer-to-peer implies that either side can initiate a session and has equal responsibility. Corey Chan Andrew Merfeld.
© 2005 UMFK. 1-1 iVillage.com internet business models text and cases Kristin Belanger.
Company LOGO Peer-to-Peer Inside and out What is a P2P network?  All machines are connected as equal  Each user is a Peer  Peers can act as both a.
P2P WeeSan Lee
Music File Sharing Caitlin Smith Stewart Rutledge Jess Culpeper.
Napster By Gediminas Sumyla. Company overview Napster was initially created in 1999 by 19 year old Shawn Fanning who attended Boston Northeastern University.
Game March 22, 2005Ashley Irvin/ Copyright Copyright and Plagiarism for Students Exploring the world of copyright and plagiarism.
By: Lauren Monteith, Derek Love, Cole Howell, and Reggie Jones.
BREAKTHROUGH TRENDS IN THE NEW MUSIC BUSINESS CONDUCTOR Jay Frank Founder/CEO DigSin PLAYERS Bryan Calhoun VP New Media & External Affairs, Soundexchange.
Digital Music Distribution By: Gregory Javardian, Andrew Kelly, Colin McGrail, Nicholas Mortimer, Daniel Zantzinger.
Copyright, Designs and Patents Act. Introduction You have spent three months working on your coursework. It is absolutely brilliant,, you just know that.
1 MIT’s Media Tech Club November Gordon Hoffstein President & Chief Executive Officer.
PERSONAL TECHNOLOGIES MS. BROCK – SCT 11. THE DOWNLOAD GENERATION DIGITAL MUSIC TECHNOLOGY – CHANGE IN HOW MUSIC IS RECORDED, DELIVERED AND PLAYED EXPLOSIVE.
The Digital Takeover: Online Media Downloads & File Sharing -Maliq Kendricks.
Intellectual Property Rights and Online File Sharing Erwin Solis Antoine Herve Matt Olsen Nikolai Hart Tim Scott.
Music Downloads David Jenkins PERS In The Beginning… In the 1950’s, a company called RCA (Radio Corporation of America) introduced the first synthesizer,
Paul Kelly CIS Music Piracy  Music Piracy  File Sharing  Peer-to-Peer  History of illegal music Downloads.
Intellectual property rights concern the legal ownership and use of intellectual property such as software, music, movies, data, and information. Intellectual.
Intellectual Property Rights Online File Sharing Brett Colbert Wendi Jardin Victor Cortez Brett Colbert Wendi Jardin Victor Cortez.
© Folens 2008 Cultural changes in music Brought about by ICT.
IPod Creating An Iconic Brand.

Group 06-From Lecture 06 Member 02 Presented by: Xu Wei iTunes B2C SUCCESS STORY&CONTROVERSIAL ISSUES.
1 Good Digital Citizenship: Examining Student Peer-to-Peer Activity at Illinois State University EDUCAUSE Live! David Greenfield, Director Student Technology,
Classroom Activity – Lesson 1: “Defining Terms”. “Capitalism” is identified by its characteristic institutions Institutions: the formal and informal “rules.
 The iPod is a portable music player developed by Apple Computer. Though it is an Apple product, the iPod can be used with both Macs and PCs.
Emily Adler, Megan Gasvoda, and Kristine McNally.
Digital Rights Management Maxim Fastovsky. What is DRM? DRM technologies attempt to control use of digital media by preventing access, copying or conversion.
Problem Based Learning Project Presented by Penny Reagan, Elizabeth Stewart & Stephanie Watkins.
CS 453 E-Commerce Technologies Sweet Spot Case Study 11 September, 2003 Ryan K. Dickey.
The Start Shawn Fanning (19-yr-old student nicknamed Napster) developed the original Napster application and service in January 1999 while a freshman.
LEGALESE BLONDE RIAA vs. NAPSTER Daniella Nero University of Hawaii at Manoa AMST 334 Sp-13.
N a p s t e r. How it all began… Napster began in a college dorm room when a student named Shawn Fanning wanted to share some of his songs with his friends.
The McGraw-Hill Companies, Inc Information Technology & Management Thompson Cats-Baril Chapter 1 Introduction to Information Technology & Management.
Jordan Baxley Kyle Neal Kadell James Justin Copeland.
Marketing Strategies for the New Economy
Exam Unit G % of A2 - 2 hour exam marks - (50/50) Section A: Theoretical Evaluation of Production Section B: Contemporary Media Issues (Online.
Umar Hassan. The main target audience I am trying to cater for is in the demographic because they are the audience that are most likely to come.
Concepts of Video and File/Sharing System Reporters: Ma. Raizza M. Cantara Mary Jane Eule Richard Ravalo Maika Laguartilla.
ZForm LLC Games with Vision TM Creating online games that allow the blind and visually impaired to play with each other and their sighted friends and family.
Definition of Internet Piracy Definition of Internet Piracy Internet Piracy The unlawful reproduction and/or distribution of any copyrighted digital file.
Globalisation affects: music MOVEMENT OF PEOPLE - Immigration. With the migrants comes their music. Tourists and music sales. Education. - Effects of foreign.
A company called Napster was developed. This company encouraged piracy by enabling and allowing its users to trade copyrighted songs through its servers.
Team Wikipedia Distributing digital stored information (computer programs, multi-media, etc). Regular methods : Removable media
On-Demand vs Virtual Neighborhoods An Analysis of the Impact of On- Demand Media on Radio Listening 2005.
Slides prepared by Cyndi Chie and Sarah Frye1 A Gift of Fire Third edition Sara Baase Chapter 4: Intellectual Property.
New Media Technology: The Impact on the Music Industry
Digital Rights Management Maxim Fastovsky. What is DRM? DRM technologies attempt to control use of digital media by preventing access, copying or conversion.
DMCA Compliance: Adapting Strategies to Hit a Moving Target Jeff Gimbel
MP3s: Legal? Ethical? Rolando Lopez CS 99 Dartmouth College.
By: Justin, Juan, Jian, and Jazlin
How the music industry has been affected by the internet and digital downloading By Peter Harris.
Presentation transcript:

© 2005 UMFK. 1-1 Napster internet business models text and cases Jeffery T. Pelletier

© 2005 UMFK. 1-2 Topics Napster History Napster Evolutions Customers Management Structure Lawsuits filed against Napster Some knockoffs of Napster Market Research done on Napster Competition GBF analysis What eventually happened to Napster?

© 2005 UMFK. 1-3 Napster History Known as a content provider. Created in 1999 by Northeastern college dropout Shawn Fenning. Got Napster name from his own nickname. He wanted to create a place, on the Internet, where he could go and trade music files with his friends. –First peer to peer mp3 file sharing network. He spent 60 hours, pretty much non-stop writing code for his new idea. Napster would be a place where users could find unreleased and bootleg music. Users could also find other users with the help of Napster’s databases. Record Companies got wind of this and started handing out lawsuits.

© 2005 UMFK. 1-4 Napster Evolutions Started as free file sharing service. –Forced to shut down in 2002 by RIAA(Record Industry Association of America. Napter purchased by Roxio and evolved into a pay subscription service and became a major mp3 competitor with the release of Napster To Go. –Released Napster To Go in November 2003 just in time for holiday season. In November 2005, teamed up with XM Satellite Radio. –Users will be able to download music they hear from XM Satellite Radio.

© 2005 UMFK. 1-5 Customers 2 segments: –With free subscription. High School/Middle High students. College students. –Pay subscription. Still some college students age range.

© 2005 UMFK. 1-6 Management Structure Chief Executive Officer – Chris Gorog – Former CEO of Roxio. –Vast career in media and crossing that over to the world of technology. President – Bradford Duea; –Had previously worked with company People Support Inc. –Had great Experience in closing big deals with big VCs. Chief Operating Officer – Laura B. Goldberg Chief Financial Officer – Nand Gangwanni –Had twelve years of experience in financial planning for previous companies.

© 2005 UMFK. 1-7 Lawsuits filed against Napster All lawsuits were filed by RIAA. –Represented five largest music labels and many of the small ones. Went after the idea of a free Napster. Argued copyright infringement violations. After targeting Napster, they went after individuals. –Individuals with large databases. –More that half of users were teenagers. RIAA said that they were losing money because Napster was stealing from their record sales.

© 2005 UMFK. 1-8 Napster Clones Gnutella BearShare Morpheus LimeWire Kazzaa

© 2005 UMFK. 1-9 Market Research on Effects of Napster’s Free Service Forrester Research done in August of Some key facts that were uncovered: –Sales of digital music would reach $2 billion by –Music sales were not down due to Napster at all. –Three factors that were pushing Music sales down: Current Recession in US. Emerging DVD sales. Emerging Video Game sales.

© 2005 UMFK Competition Can be segmented into two segments with Napster’s evolutions: –Free Napster: LimeWire Gnutella Morpheus BearShare Kazaa –Pay subscription Napster and Napster To Go: Apple Ipod Rhapsody Dell Pocket DJ Creative Zen Micro iRiver’s H-10

© 2005 UMFK GBF Analysis Network Effects. –Viral Network effects. –Moderate. Economics of Scale: –Fixed with free Napster. –High. Customer Retention: –High for the free Napster –A little lower for the subscription Napster.

© 2005 UMFK Conclusion Napster used a Get It Right First approach and succeeded. –Shawn Fenning had an idea and wanted to get it out before anyone else could do it. Napster has gone through many evolutions and is still alive today. Napster keeps changing with the changing technology. –Example….The newly formed alliance with XM Satellite Radio.

© 2005 UMFK Questions?????

© 2005 UMFK. 1-14