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Agenda
P2P Definition Evolution of P2P Case Study Question and Answer
Agenda
P2P Definition
Evolution of P2P Case Study Question and Answer
Multiple Server
Agenda
P2P Definition
Evolution of P2P
Napster KaZaa Bittorrent
Napster
History
Founded in 1999 by Shawn Fanning at age of 19 !!! Specialized exclusively in music in the form of MP3 files Presented a friendly userinterface
Sean Parker
History
In February 2001 the program hit global use by 26.4 million users
Legal Challenges
New songs leaked in Napster network before they were released Filing a lawsuit by
Metallica Dr. Dre Madonna Etc
Legal Challenges
Napster lost the case Could continue its business with non-infringing uses Shutdown its service in July 2001 Bankrupt in 2002
Or
Subscribe with Napster
$5 Gets You 5 MP3s and Unlimited On-Demand Streaming Music
What is Kazaa?
Kazaa is a peer-to-peer file sharing application using the FastTrack protocol and owned by Sharman Networks.
2003-Feb
2001-Mar
2001-Nov
2002-OCt
2004-Feb
Kazaawas founded
Bittorrent
Protocol Developed by Bram Hohen (2001) by Python
it has been estimated that it accounts for approximately 27-55% of all Internet traffic (depending on geographical location) as of February 2009
Bittorrent Concept
Solve Problem about inequality speed of upload and download & Server overloaded File Separation, Parallel Download.
Idea from MojoNation : split a single file into pieces
Bittorrent Conponent
Client : Tracker Client Program Server : Collect Torrent File & Tracker
Close System
Member / Ratio (Upload / Download)
Open System
Torrent File
Advantage / Limitation
Advantage
Higher Speed Enable to transfer bigger file
Limitation
Speed depends on No. of peers Problem with streaming file
Agenda
P2P Definition
Evolution of P2P Case Study Question and Answer
Legal victory!!! but do not solve problems facing the music industryWHY??
Question 1
How can P2P file-sharing networks make money if they do not sell music?
Direct Sell movie online (e.g. www.cinemanow.com) Indirect Provide the download service for online game and earn from Air Time Sell advertising on the sites Distributed Software for advertisement to peer PC directly
Question 1
How can P2P file-sharing networks make money if they do not sell music?
Indirect (cont.) Member fee for Bittorrent website. Bittorrent Broadcaster. Cohen get Donation by followers. Another Service like Colo
Question 2
Into which category or categories of ecommerce do P2P file-sharing networks fall?
C2B: These are Consumer to Business models where the business advertises, and the Consumer then clicks on the advertisement to get to the business. The largest social issue is the boundary of ownership of non tangilble goods. How can stealing a copy be theft. The record industry has just cause trying to limit P2P, as their market is being erroded by the use of P2P, in part because of the social issues, and confusion of acceptable and non acceptable behavior, namely digital theft.
Question 2
Into which category or categories of e-commerce do P2P filesharing networks fall? B2C - It is also called online shopping, when people (consumers) buy goods or services at online shops or when they pay for access to premium content of websites. B2B - In this case transactions are made between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer. C2C - when people sells used goods to other people, using eBay or other auction web service
Question 3
What social issue are raised by P2P file-sharing protocols and programs such as BitTorrent?
Pornographic Film/ Movie Piracy of Intellectual property Privacy/Cultural Change in Consumer Mind-Set & Behavior Change in business model/ business strategy
e.g. U2: Free music and revenue comes from concert and others.
Question 3
Is the record industry justified in attempting to shut them down? Why or why not?
Yes:
P2P file-sharing protocols/programs lead to loss in revenue. For long term effect: Investors might not be interested in this business. A disaster for artists (loss of income), consumers (loss of platforms the music industry COULD develop), and society (loss of jobs, artists). the proposed policy to disconnect file-sharers from the Internet; however, this couldnt be done since the technology itself is legal
Question 3
On the other hand, creativity and quality of work might be improved to handle with the loss of income crisis
Question 4
Will the supreme courts decision inhibit the development of P2P technology or the internet itself, as proponents of P2P services have claimed?
Not prohibited -The concept behind file-sharing is totally legal -But a the same time sharing copyrighted material is illegal - Sharing file without the permission of the copyright holder is against the law
Question 5
Why do people older than 21 tend to use legitimate downloading sites whereas younger people tend to use illegal sites?
Income/ Credit cards issue Ethics/ Legal issue Kid/Teen Convenience Lifestyle (Youtube and MP3 file sharing)
Question 6
What difference would it make if the existing music labels disappeared for lack of revenue?
No big company Deficit/ bankruptcy Business will change business process. Cross functional business Targeting revenue from Brand Identity, Souvenir, Performance ticket rather than selling the CDs Long tail artist e.g. Increase in Indy artists
Question 6
What legitimate function do the music labels perform in the creation and distribution of original music?
Sample music/Teaser w/o protection as a part of promotion tool and creating a buzz with no financial cost Targeting revenue from Brand Identity, Souvenir, Performance ticket rather than selling the CDs e.g. U2: Free music and revenue comes from concert and others.
The End