Goel et al (2010) "The impact of illegal peer-to-peer file sharing on the media industry

14 important questions on Goel et al (2010) "The impact of illegal peer-to-peer file sharing on the media industry

What do peer-to-peer (P2P) file-sharing networks enable?

Computers to connect directly to each other and utilize specialized software to locate and trade a variety of digital files, including music, movies, video games, and computer programs.

Why is the media exposed to a free-rider problem?

Non-commercial users have little economic incentive to pay for artistic works that are costly to produce in the private sector but available for free.

What is a way to compensate media films and artists?

Through general tax revenues or specific levies on products that benefit from artistic works such as audio and video players, or to bundle media products with those not subject to a free-rider problem
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

What is an alternative solution to the free-rider problem?

Legislation to enforce property rights: copyrights enable producers to capture revenues from their creative works by making it illegal for purchasers to duplicate and distribute their work over a specific time period without prior permission, for which they may charge royalties.

What happens in a pure P2P model?

All participants (peers) store resources and directly communicate with each other without relying on a central server or gatekeeper

What did this article investigate?

The impact of the media industry’s efforts to protect its intellectual capital by curbing unauthorized file sharing over P2P networks through legal initiatives on the future prospects of its members.

Where would a successful business strategy for media firms focus on?

On an integrated approach to monetizing access to musical and video works coupled with combating infringement of copyright violations through tightening legislation, better enforcement strategies, and initiating programs to increase public awareness of the necessity of copyright protection and damage caused by unauthorized file sharing over P2P networks

What woud an effective business model in most future scenarios aim to capture?

All possible cash flows from artistic works through promotion of brands, sponsorship, advertising, syndication, royalties, and development of portals for distribution and networking

What are the four distinct elements stated to change?

  1. Legislation
  2. Enforcement
  3. Education
  4. Business models

What about business models?

Need to consider new business models to benefit from emerging technology and cater to changing customer tastes

What is on the horizontal/vertical axis?

Horizontal: Public Policy
Vertical: Technological Change

What is the conclusion of the authors?

The media industry should continue current legal strategies against unauthorized file sharing. Besides that, the industry should discover new ways of monetizing its products to create values.

Why has control over downstream activities weakened with the recent development of digital files that can be easily reproduced and transmitted over the Internet?

  • Because of low barriers to entry
  • Low investment needs
  • Relatively lucrative returns 

How has the new technology greatly increased the power of individual consumers?

In the absence of switching costs they can
  • Download singles for free over the Internet
  • Listen to music over social network or sites that stream music on demand
  • Artists can record quality music without the need for elaborate studio facilities and distribute it over the internet

The question on the page originate from the summary of the following study material:

  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
Remember faster, study better. Scientifically proven.
Trustpilot Logo