Music Piracy and iTunes



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Code :BSM0031

Year :
2005

Industry : Entertainment

Region : US Europe

Teaching Note:Available

Structured Assignment :Available

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Introduction:The global music industry had been facing a serious on slaught of piracy that threatened its very existence since the late 1990s. Pirated Compact Discs (CDs), massmanufactured across the world, were being marketed at lower prices than the originals. Rewritable CDs or CD-Rs were also getting manufactured with the help of music downloaded from the Internet. Further, the Internet allowed sharing of unauthorised music files between the users of services like Napster. According to the International Federation of Phonographic Industries (IFPI), 40% of CDs and cassettes sold in 2001 were pirated versions. Organised criminal gangs had also entered the CD pirating business.

The industry bodies like the IFPI and Recording Industries Association of America (RIAA) retaliated by suing the online services that provided free downloads. They set up an online anti-piracy software called 'Songbird' that allowed them to monitor the transfer of unauthorised music files across services like Napster. They also collaborated with the law enforcement authorities of various countries and shut down many illegal CD manufacturing units across the world. Major music companies started their own online subscription service that allowed users to purchase songs online for a small fee.

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