Brief about MP3, intenet and Music Downloads
Sales of personal music players were bound up in the battle for  supremacy in online music purchases. Apple Computer, Inc., found itself embroiled in a dispute  with RealNetworks, Inc., which decided to provide consumers with  software for converting downloadable songs from a RealNetworks music service  into a format that could be played on Apple's highly successful iPod. The move followed an unsuccessful effort by  RealNetworks to license the iPod music format. The apparent motive was to lure  customers away from Apple's iTunes online music service, since the iPod could  play music only in a format used by iTunes or in the widely available MP3 format. RealNetworks insisted that it was  within its rights, but Apple accused the firm of unethical behaviour.  The battle underscored the growing competition in  the online music market, which some analysts estimated would generate $270  million in sales in 2004, more than double 2003 sales. In April Apple said its  iTunes service had sold more than 70 million songs at 99 cents each during its  first year, although that fell somewhat short of the 100 million songs the  company had projected it would sell in that period. It surpassed the  100-million-song mark three months later. Apple faced a growing field of online  music competitors, including Microsoft's MSN Music, RealNetwork's Rhapsody,  Yahoo!'s Musicmatch, Roxio's Napster, and Sony's Connect. Yahoo!, a late entry  to the market, had paid $160 million for the Musicmatch online music  business. Some surveys showed that more than 20 million  people in the U.S. continued to download free music from the Internet in apparent violation of copyright laws. The music industry's trade association, the  Recording Industry Association of America, continued to file  copyright-infringement lawsuits against consumers whose computers were found to  be sharing copyrighted music. The music was typically downloaded by means of  online file-sharing services by which a computer user essentially opened a  window into his or her computer and allowed other participants in the service to  copy the music files. Although the participants could use false names, their  computers could be identified by their IP addresses, which in turn could be  traced to individual file sharers through their Internet service providers. One major effort of the music and motion picture industries had been to stop the Internet  file-sharing networks that consumers used to download copyrighted music. The U.S. Supreme Court, however, rebuffed the music and movie  industries when it declined to review a lower-court ruling that Internet  peer-to-peer networks (which linked individual consumer PCs) were not legally  liable if their users exchanged copyrighted music and movies. The 2003  lower-court decision the Supreme Court let stand also said that the music and  motion picture industries could not rely on subpoenas alone to force Internet  service providers to disclose the names of customers who allegedly shared  copyrighted files; a court review would be required first. The U.S. Congress considered aiding the music  industry in its fight against file-sharing networks. The Senate introduced a  bill, called the Inducing Infringement of Copyrights Act, that would  make a person who induced another to violate copyright law legally liable for  the violation. The legislation would, in effect, ban the peer-to-peer networks,  but some analysts feared that it also could adversely affect some consumer  electronics products, such as MP3 -music  players, that could potentially be used in violation of copyright. The success of online music sales piqued  Hollywood's interest in online movie rentals. The distribution of online movies  was being handled through authorized movie-download services that permitted  viewing a rental for a limited period of time. The services generally offered a  relatively small selection of titles, but some permitted rental of an unlimited  number of the available films for a flat monthly fee. The process of downloading  feature films was slow and could take hours. TiVo, the maker of a digital video  recorder that copied television programming onto a computer hard disk, planned  an alternative service that would enable consumers to download movies and music  from the Internet for a fee. High-speed, or broadband, service for Internet access continued to grow.  By some estimates it was being used by slightly more than one-half of U.S.  residential users who had some type of Internet access, up from slightly less  than 40% one year earlier. Broadband service was offered both by telephone  companies, typically through a digital subscriber line (DSL), and by cable TV  firms. The number of broadband subscribers worldwide was expected to more than  triple between the beginning of 2004 and the end of 2008. In the long run,  wireless Internet service and satellite Internet service also were expected to  contribute to the spread of broadband. A handful of U.S. cities, including  Philadelphia, expressed interest in providing broadband service to their  citizens through wireless technology.
Portions from Britannica
 
 











 
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