File Sharing has revolutionized the web world, by providing access and distributing digitally stored information such as music, movies, computer programs, etc. According to the January issue of American Demographics, music sites like Napster have created "powerful new opportunities for music marketeers". According to a recent study by Greenfield Online and YouthStream Media Networks, nearly 75 percent of college students have downloaded music from the Net, 58 percent of them using Napster and nearly two-thirds of the 1,135 college students surveyed say they download music as a way to sample music before buying it. A survey by Yankelovich Partners for the Digital Media Association found that about half the music fans in the U.S. turn to look for artists they can't or don't hear in other venues, like radio. Nearly two-thirds of those who downloaded music from the Web say that their search ended in a music purchase. The above surveys clearly indicate, not just the usefulness of file sharing for the music industry, but also its effectiveness.
File sharing, also serves as a medium of distribution for the less known artists, who gain recognition, by being introduced to consumers via file sharing sites.
As far as legislations to curtail online music piracy are concerned, there are serious limitations. It would be difficult to balance piracy laws, so as to not infringe on freedom of speech or expression of users. Therefore, extensive efforts, to formulate legislations, to curtail online music piracy would have too many loop holes and thus be a futile exercise.
File Sharing, can also be a great marketing tool for marketeers, as they can track the tastes of users by following the type or kind of music they are downloading.
Though, there is no doubt in the fact that online music piracy does hurt Record companies and some artists, lawmakers should not go to the extremes while formulating legislations.
Sources:
http://slashdot.org/features/00/12/28/1653257.shtml
http://adage.com/whitepapers/whitepaper.php?id=9
