The problem that most users are facing with P2P software is that many users have flooded the software with fake files. Also the quality of music files may vary, as some may be recordings from radio stations etc. Therefore it may take a few attempts to get a track of decent quality.

As a result of P2P music CD sales have declined and record labels are turning to other alternatives such as purchasing music through downloads (e.g. itunes, napster). However, this has not yet stopped P2P downloading.

What has not yet been established is P2P music subscription software. A software that guarantee’s quality audio downloads. One application that does this is Razorpop:

“The RazorPop P2P Music Subscription benefits both the music industry and consumers. For the industry, P2P is the one channel the major labels haven’t licensed yet or monetized. That’s ironic because P2P offers a ready-made customer base of 20 to 30 million US users. At $100 per year per subscriber, P2P represents a virtually instant multi-billion dollar market that can reverse the music industry’s sales decline.”

Razorpop has taken something that already exists and corrected the errors in the software to create its own that benefits both the producers and consumers. Consumers are receiving files of an excellent quality and above all, legally. As a result, producers will move to a new type of online retail that will ensure revenue.

This software could be used as a promotional tool to generate more media coverage by releasing bonus tracks specifically to this software, try before you buy early recordings etc. These types of strategies will create media attention and attract more users and subscribers which benefit the producers of the software and the music. As it is still P2P I feel that the subscription prices should be lower then RazorPop’s as the user do most of the work. There must be an avenue in between where users and producers benefit from the application at a price that suits both.

Bibliography

http://www.bemuso.com/musicbiz/digitaldistribution.html#peertopeerpoisoning

http://www.trustyfiles.com/corp-press-P2PMusicSub.php

P2P (peer-to-peer) is a network where computer systems (peers) are connected to each other through the internet using a P2P networking application. Through the P2P application users can use the internet to exchange files directly. P2P networking applications give each peer both server and client capabilities and therefore there is no need for a central server.

Each computer system connects to another through IP addresses. When another P2P network member is online it will connect to that user’s connection. This enables each peer to exchange files with another peer that is online.

One of the main uses of the P2P network is to share music files. Music companies see P2P file sharing as a criminal’s intention to steal profit from company capital and innocent artists. The Recording Industry Association of America (RIAA) recently said that “CD shipments for the first half of the year were down nearly 7 percent. The music industry group pointed to consumer behavior studies it said showed that people who use file-swapping networks tend to buy fewer CDs”. From this statement we can see that as a result of file sharing record sales have decreased.

Artists are however, still managing to make money but from other means such as increase in concert ticket prices. Prince also released his new album free in the mail on Sunday. This created a lot of press attention for Prince, more mail on Sunday will sell and Prince has also made a deal with the paper but how much is unknown.

Those that are suffering from P2P file sharing are major record labels. Many are now reluctant to sign new talent as they are unsure if they will sell records. They are sticking to their current artists and trying to make as much revenue from them.

BIBLIOGRAPHY

http://www.news.com/2100-1023-958324.html

http://business.guardian.co.uk/story/0,,2114557,00.html

http://www.dailymail.co.uk/pages/live/articles/showbiz/showbiznews.html?in_article_id=468443&in_page_id=1773

Chris Anderson is the first person to coin the term the Long Tail. The Long Tail is when products that have low sales, sell more of that product over time in comparison to products that have larger sales in a shorter amount of time (e.g. blockbusters). This theory shows that there is a shift in our culture and economy away from small number of “hits” at the curve then a large number of “hits” at the tail.

As a result of online purchasing there is no longer a need to consider shelf space as you would in a music retail store as online there is an unlimited amount of space, therefore products that are not available in stores can be easily found online. This means that those products that are not blockbuster are sold slowly but constantly over time, whereas blockbusters and big sellers will sell large quantities in a short amount of time.

Music online will slowly increase and the demand for high street music retailers will decrease as the online music retail will replace it. There will always be a consumer who wants the physical copy of music (on CD) and therefore it won’t disappear. However, downloading will and has become more popular. Online music is becoming more popular as it is there at a click of a button. The prices of the product/ file are less and it is easily accessible for the consumer.

For music in general sales are decreasing, online downloads are not making up for this loss and artists are giving their music away for free online (through myspace etc). This is because they are making their money through other means such as touring. Touring ticket prices have increased as the atmosphere and feeling of being at a live performance will not change and there will always be revenue here.

A music retailer is a seller of commodities (e.g. cd’s, vinyl’s, band merchandise etc.) directly to the consumers at a retail price. There are many types of online music retailers such as music retail stores, online only music retail store and online download only store. An online music retail store would be websites such as HMV and Virgin Megastores. They are a chain of stores that are spread around the country and are known to most music consumers. Online only music stores include websites such as play.com and Amazon. These websites allow consumers to purchase goods online only, they do not have a physical store in which you can walk into and pick up a CD. The consumer has to order the goods online and they are delivered to them. Online download only stores are a new way to consume music. Downloading music allows the consumer to have just the music file rather than the hard copy of a CD. To download music the consumer has to use free software such as iTunes to download from. This form of consumption has become increasingly popular. Independent music stores on the other hand operate outside of large company chains they may only have a single or couple of stores. Independent stores that I have looked into (tudor tunes, rockaboom) don’t seem to have much of an online presence. The information that is provided about the independent stores online is mainly contact information and location of the shop.

Purchasing music online has become a much more simple and improved. The consumer can now listen to the songs before they buy which the consumer can also do in stores. Most online stores have a system where the consumer has a “basket” which they can add their goods to and when finishing shopping they can view the basket. They can then remove unwanted items and then proceed to checkout. This system allows the consumer to purchase goods as they would in a physical store.

There are many ways in which the consumer can pay for the goods. One way is through a system such as Paypal or through registering your details through the website. Consumers often prefer to buy online as prices tend to be lower then in high street stores, this is because lower overheads. Often websites have blogs where the consumers may communicate with one another. They also have a system where they can rate the buyers and what they are purchasing, through giving reviews of their own.

There are many advantages for consumers if they purchase from online music retailers. The high street online music retail stores have competitions which you can enter, you may also purchase merchandise or DVD’s, you may pre-order and prices are lower. The website all tend to have contact details which include e-mail addresses so the consumer can easily get access to online help. They also have there terms and conditions stated. Also for those who are not looking to buy online the websites have a facility where you can locate a store through the website. Most deliveries are free which is beneficial to the consumers. They also have a customer service area which is used to guide the customer and give them any help that they may need. 

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