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What is an mp3?

MP3. short for MPEG Layer III, is a coding standard of compression for audio data. A four minute song from a commercially produced CD takes up anywhere from 40-50MB of storage space. The same song encoded in MP3 format at 128kbps will require less than five MB of space, and only slightly more for a higher quality bit rate like 192kbps.

The quality to compression ratio for MP3’s is so good that instead of 20 songs on a CD, you can fit more than 120. Instead of carrying around your favorite Rolling Stones CD everywhere you go, you can play every recording the band made EVER! This includes the farewell tours of 1991, 1997, and 2001. 

At what cost?

However, this technological evolution and never-before-achieved freedom does not come without a price. The ability to listen to select favorite songs rather than buying complete albums and the capability to mix, match, and create your own CD mixes presents problems for the recording industry that then creates difficulties for consumers.

The RIAA maintains that networks like Morpheus, Kazaa, and the previous incarnation of Napster illegally distribute artists’ work without paying for it and thus are committing blatant thievery. In response, the music downloading sites defend themselves from prosecution on the basis that they provide no media, digital or otherwise. The networks operate on a peer-to-peer system with unique users sharing their own files which others can search for and download.

Because the argument against free music downloading is so strong some services like Apple’s iTunes and the newly reformed Napster have capitalized on the new technology but secured access to music in an entirely legal format thus providing desired songs for much less than the price of a store bought CD.

I tried Napster once, but I did not Inhale

In 1999, an 18-year-old college dropout named Shawn Fanning changed the music industry forever with his file-sharing program called Napster.  His idea was simple: a program that allowed computer users to share and swap files, specifically music, through a centralized file server. His response to the complaints of the difficulty to finding and downloading music over the Net was to stay awake 60 straight hours writing the source code for a program that combined a music-search function with a file-sharing system and, to facilitate communication, instant messaging.

Shawn Fanning, co-founder of Napster 
Shawn Fanning

After being asked about Napster dozens of times in my lectures, I tried Napster to see what all the fuss was about. After taking about 45 seconds to install Napster, I was amazed how quick and easy it was to find and download any song or comedy routine I could think of. From Red Skelton and Andy Griffith to Marshal Tucker and Pure Prairie League – almost every song you could think of was out there. SNL skits, funny television commercials and of course, plenty of porn was abundantly available. After learning about this application, I removed Napster off of my computer and never used this service again – but I admit that I went through withdrawals. To me, Napster met a need the music industry had not – it allowed users to easily create their own mix of song titles and create music CDs containing all of your favorite songs. By contrast, the music industry forces consumers to purchase an entire CD of songs to get one particular song title.

The Recording Industry Association of America (RIAA) filed suit against Napster charging them with tributary copyright infringement, which meant that Napster was being accused not of violating copyright itself but of contributing to and facilitating other people's infringement. Napster argued that because the actual files are never in Napster's possession, but transferred from user to user, that Napster was not acting illegally. The issue in P2P applications (Peer to Peer) was that if Napster was guilty of copyright infringement, then the Napster users are guilty too.

In February 2001, a judge first ruled that Napster had to stop the distribution of copyright material through its network. Record companies provided filenames and song titles that should be removed and Napster blocked over 250,000 songs using over 1.6 million filenames. In July 2001, a judge told Napster it must block all files infringing copyright, effectively forcing it to shut down. Napster folded in September 2002. The RIAA has continued to pursue Napster clones in the courts.  According to Zack Urlocker, the top ten downloads on the day Napster closed were as follows:

10. Doobie Brothers - Listen to the music
9. Red Hot Chili Peppers - Give it away
8. Dr. Dre - Bang Bang
7. Metallica - Seek and Destroy
6. Jimmy Buffet - A pirate looks at 40
5. Warren Zevon - Send Lawyers, Guns and Money
4. Judge Jules - Gatecrasher
3. Jerky Boys - Fanning my **lls
2. The Clash - I fought the law (and the law won)
1. Everly Brothers - Bye Bye Love

The recording industry has been quick to accuse internet piracy of causing a drop in CD sales, but a survey by Forrester Research in August 2002 concluded that's not true. The company said that frequent digital music consumers weren't buying fewer CDs and that the 15% drop in music sales over two years owed more to the recession and competition from the booming markets of video games and DVDs. By 2007, Forrester predicted that digital music revenues would be worth US $2 billion as long as record labels made it easy to buy songs from any record label without having to pay a flat subscription fee. In July 2003, owners of the Napster name Roxio announced Napster 2. Napster now sells digital music on behalf of record companies.

In 2005 sales of recorded music are down almost 7% from last year as the calendar hits the halfway mark. But if the music industry is looking for a silver lining in that rain cloud, they'll find it in the digital arena, where paid downloads are up by 104 million units.

For the first six months of 2005, Nielsen SoundScan reports that 282.6 million units have been sold, compared with 303 million a year ago. Digital downloads, however, have topped 158.7 million, up from 54.7 million a year earlier.

Napster Clones Emerge 

Many Napster clones have emerged, the most popular of which is Kazaa who’s parent company (Sharman Networks) is based in Australia.  In 2004 Kazaa was part of one of the the ten largest Internet based companies in the world – as shown in the table below:

      1.       AOL Time  Warner
2.
       Microsoft
3.
       Yahoo!
4.
       Google
5.
       eBay
6.
       United States Government
7.
       Amazon
8.
       Terra Lycos
9.
       Sharman Networks
10.
     About-Primedia
 

Kazaa is more than ten times larger than Napster ever was. It works similar Napster and it is used to swap all kinds of files, even large movies over 1 gig in size.

Kazaa Warning

Today if you download and install the free version of Kazaa, a large assortment of spyware will be installed on your PC including Gator and the GAIN network which remembers passwords (unless you can track down the K++ version of KazaaLite). Gator is fairly polite, staying out of sight, popping up only when they can help you. Although Gator isn't much of a nuisance, it does fall into a group of software known as spyware, sending information about buying habits, etc. for information purposes. The Gator company recently changed their name to Claria.

Downloading Music in 2004

Today many websites now offer free music downloads. Amazon.com lists over 80 MP3 players with multiple gigabyte capacities for up to $500. Manufacturers now offer personal CD players that can play MP3s for as little as $40 and in-dash car MP3/CD players start at $179. Each time a network of music sharing consumers shuts down because of pressure from the RIAA, a new one crops up almost overnight to take its place. From Napster to LimeWire to Morpheus to Kazaa to iTunes and back to Napster, online music weaves a tangled web of media, consumer’s rights, fair use, and the rights of the artists themselves. 

Some sites offer varying degrees of free music downloading:

Amazon.com

Out of Obscure

octagone.net

Glide Magazine

SoundShelf

monotonik

Kikapu

Scene.org

peoplesound

The Live Music Archive

insound

Tokyo Dawn Records

Matador Records

SoundClick

Ampcast

The Free Music Archive

CDBaby

ArtistGigs.com

Epitonic.com

DMusic.com

Lulu

MP3 4U

GarageBand

The Internet Underground Music Archives

etree.org

Fair for Share

MP3 Jackpot

Others offer pay by the song or pay by the transfer plans:

Napster

iTunes

Musicmatch 

Even retail powerhouse Wal-mart entered the fray in March 2004 with a characteristic plan to undercut market leaders. Instead of offering the common $.99 download price Wal-mart debuted their own digital music network with $.88 songs.

Downloading Music in 2005

A lot has changed in the span of one year. Whereas Apple's iPod was a premier player in the digital music arena, it is now essentially the supreme ruler and an excellent case study in marketing as well spawning a plethora of knock-off iProducts like the iToaster and even look-alike players (such as the Luxpro "Super Shuffle" shown right).

In addition to setting sales records for the blossoming new market, reaching landmark agreements with PC vendors for iTunes software to be pre-installed on consumer systems, thus increasing market share and revenue, the company that Steve built expanded their hardware line in 2005 to capitalize on the success of their iPod MP3 player with the introduction of the iPod mini and iPod Shuffle. iPod sales increased by 909%, yes there are 3 digits in that figure, between 2003 and 2004 and sales are projected to reach $2 billion by 2006.

However, not everything that glitters is made by Apple. Napster, Rhapsody, and Yahoo have pushed for the digital music frontier with the introduction of rights managed music subscriptions.

It is now possible to pack your MP3 player with 40GB worth of music (10,000 songs) from an online music store all for less than the price of a CD. Where can I get these wonderful toys you ask? We'll discuss the hardware later but first let's talk about your music, which really isn't your music anyway. Users do not actually buy the tracks; but rather rent them in an all-you-can-eat scenario for a monthly subscription fee. Sounds intriguing right? Welcome to 2005 and the brave new world of the on-the-go music subscription service. Traditional services don't allow you to transfer tracks to portable devices unless you buy them outright, but today, there are three players ready and willing to slake your audio thirst: Napster To Go, Rhapsody To Go, and Yahoo Music Unlimited.  

Napster To Go  $14.95 per month; three months free with purchase of certain new MP3 players
YAY!

  • Preprogrammed playlists specifically tailored for your device
  • completely interactive radio stations that can be saved as playlists
  • can access all other members' subscription-based music library
  • you can add content to player continually while it's syncin

NAY!

  • Graphically intense interface isn't immediately user-friendly; sometimes has trouble recognizing when a compatible device is connected.

Rhapsody To Go $14.99 per month; $100 rebate with annual subscription and purchase of iRiver H10
YAY!

  • Fastest music downloads
  • most user-friendly interface
  • excellent editorial content
  • playlists are publishable for sharing with other members
  • only service that allows you to send full-length tracks (and playlists) to nonsubscribers

NAY

  • No autosyncing of subscription-based downloads
  • to-go selection isn't as robust as regular subscription catalog.

Yahoo Music Unlimited $59.88 per year ($4.99 per month) or $6.99 per month


YAY!

  • Most affordable service
  • integrated Gracenote Music ID that automatically fills in ID3 info for untagged music
  • can access the entire music library of any Yahoo Buddy who also subscribes
  • good integration with Yahoo Messenger.
     

NAY

  • Interface is a bit bland and has a few minor limitations
  • device integration not as elegant as other services; weak editorial content.

Quick tips

  • Since all files are transferred through your PC, you'll need ample space available on your hard drive, 30GB of MP3's means you'll need 30GB of free space on your computer too
  • Make sure you have a compatible device and that the device's firmware is up to date.
  • Take it for a test drive. Sign up for the free trial at any of these services, and make sure you're comfortable with the jukebox software as well as the service itself. Most of the services also support ripping, burning, and managing your music library
  • You will need to to sync your device with the service at least once a month to keep the licenses for your songs from running out
 

However, before you point your browser to one of the services and start grabbing songs left and right, make sure your MP3 player is compatible with the subscription format. Windows Media Digital Rights Management (DRM) 10.0 makes the magic happen. This technology allows an MP3 player or other device to keep track of when your subscription ends or is due to be paid. After the expiration period,  content will time out and force you to reconnect your portable to a computer (and pay up, if necessary) before you can listen to the music on the player again. Because DRM requires a hardware clock within the device, only newer MP3 players work with on-the-go subscription services. If you have an MP3 player that was made before the closing months of 2004, you're probably up the iCreek, or is it iRiver? Alas, iPod aficionados and owners of Sony players--sorrow be thy name. If you fall into one of these categories, and want to partake of the subscription services, you'll need to get a compatible player such as the Creative Zen Micro, iRiver, Dell Pocket DJ, or even a portable media player like the Archos 420 or Samsung YH-999.

Also consider Content, Community, Device Integration, and Transfer Times before selecting a music subscription service.

Content

In addition to looking at the overall size of the music catalog, consider the preprogrammed content which can save time.
In the previous section, we touched on the scope of the music content represented in each service's catalog. Pretty much anything mainstream you can think of will be available on any service but also look at preprogrammed content such as radio stations and playlists as well as editorial content.

Yahoo offers access to all 120 Launchcast stations and in general, a high percentage of popular music, but you can't save radio stations as playlists or easily download the content.

Rhapsody has 50,000 artist-based stations and over 100 preprogrammed radio stations, which can be browsed by genre. Rhapsody seems to do the best job of incorporating indie music into its stations. You cannot save radio stations as playlists or download the content. 

Napster has the most fully interactive radio. Not only can you pause, skip, and reverse tracks, you can save stations as playlists and easily download the content which can then be transferred to your MP3 player. Napster seems to offer the widest variety of stations. You can create a custom radio station based on your entire library or by selecting three or more songs from your library. Since they can be saved as playlists, you can make as many as you want. Napster To Go is also the only service to have a dedicated section of playlists tailored specifically for your MP3 player.  

Community

Community features in music services are an integral part of the structure as they present fun ways to discover new music

and share with your friends.

 

All of the services provide a send function for sharing tracks or playlists, but with Rhapsody the recipient doesn't need an account to listen to the full song or playlist. Rhapsody and Napster use e-mail for sharing, and allow you to send multiple songs; Yahoo uses IM, and you can send only one track at a time.

If you have a large network of friends that use Yahoo IM and also subscribe to Yahoo Music Unlimited, then your preferred choice should be clear. When your contacts are logged in and running the Yahoo Music Engine, you can access their entire library, including personal playlists.  

Napster allows you to browse all other members' collections, rather than just those of your own contacts. Want to find members with your same taste in music? Right-click a track, and select "Find in Members' Collections"; all the members who have that song in their library show up in the window.

Transferring files

Each service will also exhibit certain speed characteristics when downloading songs from the catalog to your PC and then when moving them to your device.

File Download Speeds:
Napster To Go: 1.1 MB/sec.

Rhapsody To Go: 2.9 MB/sec.
Yahoo Music Unlimited: .42 MB/sec.

File Transfer Speeds
Napster To Go: .82 MB/sec.
Rhapsody To Go: .87 MB/sec.

Yahoo Music Unlimited: .67 MB/sec.

Device Integration

All of the services require you to sync your player each month to ensure that your content does not time out, and if necessary, pay up to continue using your songs. Some force you to sync right after your payment date, others allow a short grace period of 5 days or so.

Case Study

      -          Apple launched its web-based music store iTunes in April 2003
-
          Users downloaded 1 million songs in three days, each selling for $.99 when
           a Windows compatible version of the software was offered
-
          30 million songs had been downloaded from the pay site by the fourth
           quarter of 2003
-
          In 2004 iTunes controlled 70% of the music downloading market

Conclusion

The popularity of the MP3 file format is entirely market driven. The recording industry did not direct this shift as it did from cassettes to CDs. The public at large has expressed an interest in highly portable and transferable music files and the demand for these features is not likely to diminish any time soon.

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