First Weekly Task

How can file sharing networks make money if they do not sell music?

Basically, file sharing networks make money off different kinds of premium accounts. These accounts allow users to download faster, share and store bigger files. Some file sharing networks, like RapidShare even provide data protection with premium accounts. So the main source of profit is premium accounts for these networks. But some file sharing networks (like ThePirateBay.org) sell different kinds of T-shirts and small stuff like that, which allows them to get some money for financing their activities.

In which type of eCommerse do file sharing networks belong to?

There are several types of eСommerce. File sharing companies can be divided into two different groups. First one is Torrent and it is “peer-to- peer” type, and the second one is other file sharing companies and they are usually mixed type, Business-to-Consumer and Consumer-To-Consumers.

Is the record industry justified in attempting to shut file sharing networks down? Why or why not?

In our vision this question has both sides.
On one side, record industry is trying to stop illegal downloading of their files. And it is justified because record companies have copy right for their files. Recently, record companies have started new campaign against illegal downloading. The biggest of rerecording companies, such as Universal Music, Warner Music, Sony Music, BMG and EMI, are financing new programs which will shut the computer off or will block your account if you are downloading some files illegally. This ain't right. Every person have a right to download whatever he wants.
File sharing networks get some percent from downloading. But as we think, this kind of sharing files is profitable for both record industry and file sharing network. Record industry, of course, is losing money because of this resource. But in some countries you haven't got access to all music or films you want to buy. And through the internet you can find everything you need.
So we think that companies should stop judging with file sharing networks. They should build a new business which will be profitable for everyone.

Do you think that illegal downloading will disappear over time?

It is difficult to answer the question, whether the problem of illegal downloading through the Internet will be solved in the future, unequivocally. We agreed that it depends mostly on legislative and regulatory authorities. They should take a clear position with regard to action in the case of detection of piracy.

In our opinion in the next few years the problem would be partially solved and in the longer term the piracy in the Internet will be almost completely eradicate. Clearly defined laws and demonstration trials of distributors of pirated content will help achieve the goal.