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Port 80 logoPopular Music:
Industry Substitutes and New Entrants

Where audiences meet musicians

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Lessig's Means of Control
Economics / Markets || Technological / Architecture
Political / Laws || Social Culture / Norms

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The Struggle for Advantage

barrier to entry

incumbents

new entrants

economies of scale

burden of distributing atoms

incremental cost of bits is negligible

capital requirements

ROI demands of shareholders and parent conglomerates

low R&D, low advertising

access to distribution channels

Internet is not ubiquitous; copyright infringement claims and lawsuits to control channel

regulatory arbitrage
Kazaa case

product differentiation

top brands; mindshare

content is exact; no analog loss

switching costs

 

short "free" downloads; no travel

cost disadvantages

top talent under contract; catalogs of copyrights

innovative, still immature

government policy

some laws, regulations, and courts support copyright infringement claims that control distribution channel

FCC; no taxes

The Internet As A Source Of Regulatory Arbitrage
A. Michael Froomkin
University of Miami, 1996

The Internet is a transnational communication medium. Once connected, there is little that a single country can do to prevent citizens from communicating with the rest of the world without drastically reducing the economic and intellectual value of the medium. As a result, connection to the Internet enables regulatory arbitrage by which persons can, in certain circumstances, arrange their affairs so that they evade domestic regulations by structuring their communications or transactions to take advantage of foreign regulatory regimes. Regulatory arbitrage reduces the policy flexibility of nations by making certain types of domestic rules difficult to enforce.

new entrants - P2P

Slyck - nav bar on left has comprehensive list

FastTrack - KaZaA, iMesh, Grokster

eDonkey, eMule, Blubster, BitTorrent, Earth Station 5, Ares

Gnutella

Shareaza
BearShare
Gnucleus
Morpheus
Swapper
XoloX Ultra
LimeWire
Phex

Streamcast Networks (Morpheus)

P2P United Members: Bearshare, Blubster, Grokster, eDonkey, Morpheus.com

Darknet

Learn more about Ian Clarke's Freenet and Bit Torrent in the Future Frameworks section of Port 80's Charthouse.

See You on the Darknet
by Paul Boutin
Slate, January 28, 2004

Why we don't really want Internet security.

No respite from the forces of darknet (N/A)
by Richard Waters
Financial Times (London), July 29, 2003

Here is a prediction: the darknet will never die. Adversaries will send out their digital agents to hunt down its disciples. But the darknet will go further underground, finding new ways to escape the reach of these electronic attackers. The faithful will find safety by banding together in small groups, beyond the reach of the oppressors.

The script for the next Matrix sequel? No — because the darknet is already here: it is the unofficial side of the internet. And its resilience guarantees that it will remain a thorn in the side of the music and movie industries, whatever successes they may have in crushing its early manifestations.

DarkNet
by Edward W. Felten
Freedom to Tinker blog, November 25, 2002

Lots of buzz lately about the DarkNet paper written by four Microsoft Research people. The paper makes a three-part argument.

First, there is really no way to stop file sharing, as long as people want to share files.

Second, in the presence of widespread file sharing, a copy-prevention technology must be perfect, for the presence in a file sharing environment of even a single uncontained copy of a work enables anyone who wants to infringe its copyright to do so. (This is what I call the "break once, infringe anywhere" model.)

Finally, there is little if any hope that a copy-prevention (or "DRM") technology can be strong enough to prevent the creation of single uncontained copies of works. So the conclusion is that the current DRM approach will not work.

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modified: August 25, 2004
by Douglas Anderson
http://RicciStreet.net/port80/boardwalk/pop/substitutes.htm