In 1999, Napster introduced a file-sharing program that forever
changed the relationship between music lovers and the industry that
serves them. Napster made it possible to download music from the
Internet for exactly the right price -- free -- an activity the
music industry calls piracy.
Since then, the record industry has brought a successful legal
suit against Napster and tried implementing monthly fee services to
encourage legal downloading. In the latest turn of events, a
federal court ruled in early June that an Internet service
provider, Verizon Communications, must turn over the name of an
individual suspected by the music industry of using a file-sharing
program, Kazaa, to share more than 600 songs illegally over the
Internet. But the record industry may be fighting an uphill battle,
as downloading music is a fairly widespread activity among U.S.
teens. According to a recent Gallup Youth Survey*, nearly half
(47%) of U.S. teens (aged 13 to 17) said they use the Internet for
downloading music.
Although boys appear to be slightly more likely to use the
Internet for downloading music (52%) than girls appear to be (43%),
the process doesn't lack appeal among either gender. Mary, who will
be starting college this fall, likes to download music from the
Internet. "It's so much more convenient than having to buy a CD --
especially if you only like one song on the whole album. You can do
it for free and save yourself 16 bucks and a car ride," she
said.
Ben, a high school junior from New York City, echoed Mary's
sentiments about not having to buy the entire CD. He said,
"File-sharing is great because (1) unknown artists get to be heard;
(2) you can hear the music before you buy it; and (3) it's totally
free."
White teens are more likely than nonwhite teens to download
music from the Internet (53% to 38%, respectively). Although whites
tend to have higher income levels than nonwhites, whether teens
have the financial means to purchase CDs may increasingly be a moot
point. When asked if she foresees any time in the future when she
would again pay $16 for a CD, Elza, a 17-year-old high school
senior responded, "Not likely."
The Web site for the Recording Industry Association of America
clearly states, "The online infringement of copyrighted music can
be punished by up to three years in prison and $250,000 in fines."
But apparently, the criminal implications of file-sharing -- piracy
of intellectual property -- aren't yet a real concern for Elza or
her friends. "I hate to say it, but I don't think about that much,"
Elza said when questioned about the issue. "[File-sharing] is so
popular that no one seems to ever have a problem with
it."
Bottom Line
In response to rampant file-sharing, particularly among teens,
the music industry is being forced to explore new strategies. Last
month, with the industry's blessing, Apple introduced iTunes Music
Store, a legal download service that charges $.99 per tune. iTunes
may become the first successful and legal digital download
service, setting the standard for a new relationship between music
buyers and sellers. Such a tack is in line with the advice Ben
offers the music industry: "They should get the technology working
for them instead of against them. If the quality of the sound
improves and there's access to most all the music, then I just
might pay."
*The Gallup Youth Survey is conducted via an Internet
methodology provided by Knowledge Networks, using an online
research panel that is designed to be representative of the entire
U.S. population. The current questionnaire was completed by 1,200
respondents, aged 13 to 17, between Jan. 23-Feb. 10, 2003. For
results based on the total sample, one can say with 95% confidence
that the maximum margin of sampling error is ±3%. For a
complete description of the sampling and weighting procedures used
to conduct the survey, click here.
