The Spawn of the Music Industry The Spawn of the Music Industry Future….Future….

Presented by:

Kondwani MwasePatrycja Nowakowska

Cristina Pisciuneri

Collective Soul

Revolution of InfluenceB2B B2C P2P

Peer to Peer P2P Speak is more credible, genuine and trustworthy

P2P File Sharing •Exchange of files between multiple users•Accessible to all with computers and the internet•Used for both uploading and downloading

BitTorrent Technology…ultimately “reduces dependency on the original distributor”

Money Why pay for it if it is free?What’s Copyright? OwnershipWho owns the right to distribute/reproduce? What’s Copyright?

Quality Who controls the quality & integrity of product?What’s Copyright?

The Challenges of P2P

The Legal ResponseIndustry lawsuits due to Copyright InfringmentPiracy and Privacy Can Pigs Fly – OINK? Dissent and rebellion against the Record Industry

(just ask Dr. Phil)

Google & Microsoft Which path will P2P adversaries take?

The Future is Now!!

Designed in 2001 by Bram Cohen, BitTorrent technology accounts for significant traffic on the Internet.

Communications Protocol• Data Representation (Format)• Error Detection• Signalling

Developed to reward sharing and not leeching

BitTorrent Technology

BitTorrent Facilitates Data Distribution• Uses “tit-for-tat” principle. You must give to

receive. Eradicates “leeching”• The more files you share, the faster your

downloads• Downloads different pieces of the file you want

simultaneously from different computers.

Did you Scratch My Back?

Technical

Step 1Click the file you want

Step 2 BitTorrent communicates with other computers using the software and have the file

you want (seed computers)

Step 3 Software identifies the Swarm (collective that has the file and are sending/receiving

Step 4 File Exchange

• Private Torrent Tracker, Members Only!• 2 WAYS OF GETTING IN:

1) Get invited by someone you know

2) Apply for an invite through a website such as http://www.inviteshare.com/

Once you’re in…

• Set up an Account with a user name and password

• Download and install a BitTorrent Client.eg: uTorrent•Multiple simultaneous downloads•Configurable bandwidth scheduler•Global and per-torrent speed limiting•Quick-resumes interrupted transfers•RSS Downloader•Trackerless support (Mainline DHT)

Oink, Oink, Oink, All the Way HomeThe 3 S’s of Torrent Tracking

1) Search2) Select3) Seed

AND ENJOY!

Hail New Cyberdemocracy!Egalitarian sharing for all!

Speedier file reception!

No need for monstrous bandwidth!

The more the merrier!

The Bigger the Better!

Choice, quantity selection & quality!

However…(not so utopic)1) No popularity, no speedy file– long tail client,

everyman for himself

2) Is still centralized through a server (tracker) with a list of peers– vulnerable to attack and then all falls apart

3) BitTorrent no good for little guys– even if they’re popular-small files take load too quick so no one ever sticks around; too lil time, no opportunity for sharing

4) Too reliant on Client Altruism– there’s still room for freeloaders… (upload rate dial-down or via firewall)

5) Too dependant on courtesy of the seeder (peer with 100% must stick around)

But Good News to Peer Users: It still works!

• Rapid P2P Growth (Mostly Video) is stressing Internet and is Undermonetized• Peer-to-Peer (P2P) traffic was 60% (and rising) of Internet traffic in 2004, with

BitTorrent accounting for 30% of traffic, per CacheLogic• “P2P affects Quality of Service (QoS) for ALL subscribers” (1)

(1) Source: CacheLogic “P2P in 2005,” (9/05).

So… What’s the Problem?

The Crisis: • Much like the Motion Picture Association

of America, the Recording Industry Association of America is having a brush with pirates ar-gh!

Solution: Time to put the Fan in the Can…

• Arrests, Lawsuits and as of May 2007, Jail time:• Hong Kong’s Chan Nai-ming will have to serve

the three-month prison term • “a strong deterrent effect on Internet piracy activities”

-Tam Yiu-keung, Assistant Commissioner of Customs & Excise • Chan was charged in April 2005 for uploading

the movies Daredevil, Miss Congeniality and Red Planet without a licence

How Could this beeee???

Note to RIAA: Relax– Online Text / Music / Video –Paths to Monetization are here! (just

accept them…)(Precedent) TEXT:

Newsgroup (UseNet) Directory: Yahoo! - )Directory Search : Overture, Google - )

(in the works) MUSIC / VIDEO:

P2P (Napster, BitTorrent) For-Pay: Apple, Radiohead- )

Source: Morgan Stanley, 2006

Online Video Momentum –Developments:

• 10/05 – Disney / ABC and Apple to offer episodes of popular shows like Lost and Desperate Housewives ad-free via iTunes for $1.99 apiece

• 11/05 – Comcast / CBS and DirectTV / NBC to offer on-demand TV shows for $0.99

• 11/05 – Time Warner to stream episodes for free (supported by 2-minute blocks of 15-30-second commercials) Jan 2006. Initial run limited to 30 series (Wonder Woman, Growing Pains, Kung Fu…) but TWX plans to 100+ series and 300+ episodes per month

• 11/05 – NBC Nightly News to air its entire broadcast on the Internet -- NBC Nightly News Netcast with Brian

• Williams will be available for free beginning at 10PM EST• 12/05 – CBS will offer NCAA basketball March Madness games for

free in 2006, on streaming ad-supported• 12/05 – CBS offers free streaming video of 2 comedy programs Two

and a Half Men and How I Met Your Mother on Yahoo! during the week of 12/27

• 12/05 – AOL / Google to collaborate to showcase AOL’s premium video service within Google Video

The Grand Solution (listen up RIAA!)

In sum, • Make nice with fans = make nice with

pirates!• Create room for ads, get interactive, get

techy-innovative • Stop suing grandmothers, kids and the

handicapped• No jail time for Peers: sharing is caring!