MusicDish e-Journal - September 19, 2017
MusicDish Advertising Network
» HOME » INSIDER SCOOP » CAREER TIPS » MUSIC SPOTLIGHT » MUSICDISH*CHINA
» INDUSTRY INTERVIEWS » NEWS BEAT » DIGITAL SKOOL » OPEN REVIEW » MUSICDISH EDELWEISS
Search MusicDish e-Journal (Advanced)
Subscribe To MusicDish e-Journal
About | Contact | Advertise | RSS | Submit Article | Submit News | Artist Development | Premium PR Distribution
Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network

An Incentive Based P2P Marketplace
By Eric de Fontenay (Founder & Publisher)
(more articles from this author)
2003-06-06
Comment | Email | Print | RSS

In a presentation I gave at Net 2001 in Paris, I claimed that "[the] lack of structure/tools [to create a viable marketplace] has resulted in classic free-rider problem. New p2p markets will need to establish a value exchange system throughout the production process." I followed up the claim by proposing that an incentive-based model would be necessary to the development of an actual p2p marketplace versus a free-for-all. "A viable p2p marketplace depends on members having a vested interest in its existence and prosperity."

Digital technology has already fundamentally changed the recording industry's production chain, from production/post-production, to manufacturing & distribution. But technology does not simply transform old processes and methods, it can also marginalize certain links of that chain as it creates new ones.

One important way that digital technology has affected the traditional production chain is in the after-sale market. Due in part to the technological limitations of the time as well as the First Sale Doctrine, the production chain - I use the term in the large sense - ended at the retailer. In the past, if I purchases a CD, I owned it, could resell it, and while I could copy and redistribute it, it's scale was insignificant and usually fell within some reasonable concept of fair use. A sale therefore was a final transaction transferring significant, though not total under copyright law, ownership to me the buyer.

Through the use of DRM & copy-protection technology, that retail transaction is no longer the final link in the chain, but a first step in an ongoing transactional relationship over the access and use of the purchased product. This effectively represents an expansion of the traditional production chain by the music industry.

But the Internet has a far more dramatic impact on the producer/consumer role by empowering consumers into assuming more roles of the production chain traditionally controlled by the industry. Newspapers implementing weblogs are in fact relinquishing a portion of their editorial control to the reader. In the music industry, CD manufacturing is a perfect example where the home PC/broadband/burner is replacing large-scale manufacturing facilities. The "problem" with peer-to-peer is that it transforms the passive consumer into an active redistributor, not only threatening its own expansion in the after-sale market, but also traditional distributors from offline/online retailers, broadcasters,... The publishing industry is already very conscious of the distributive value of its readers as it distinguishes between actual sales and value

An incentive-based model regards the changing consumer as simply an additional distribution node in the overall production chain. The imperative for the producer is to enter into a relationship with that node that maximizes its potential value by sharing in its benefits. In my model, this would be achieved through a self-selection licensing system where a menu of licensing conditions would be offered, whether for a single, multiple/group as well as the presently licensed institutional users. The license can be as restrictive as a Ę15 track that expires in an hour. But it could also be as expansive as a license to redistribute a set number of preview tracks for a flat fee and collecting fees from any ensuing purchases. Or giving an open license download where the 10 top file sharers can win a free trip to the artist's concert in Rio. You get the picture.

Well it seems Altnet has taken this point to heart as they announced the development of Peer Points Manager, "a new platform to provide incentives and reward consumers for sharing licensed digital content" by monitoring file uploads among Kazaa Media Desktop users. Kazaa users sharing Altnet's TopSearch gold icon licensed music files get a shot at plasma TVs, MP3 players, concert tickets, and more.


Home » Insider Scoop » An Incentive Based P2P Marketplace
Permalink:http://www.musicdish.com/mag/?id=8267
Email |Print |Comment |RSS

back | top


MusicDish Advertising Network

Insider Scoop

» Discogs Releases 2017 Mid-Year Marketplace Analysis Nielsen Vs. Discogs - Database Highlights

» Fake Artists and Fake Streams: Fact or Fiction?

» Music Streaming Service: The Next Frontier for Tesla and Elon Musk

» Generation Z: Meet the Young Millennials

» Analysis Of Merlin's Revenue Distributions

Insider Scoop Directory



» [2017-09-06] Youbloom Announces 2017 LA Music Festival; Ireland-based Music Festival Expands YoubloomLA 2017, Presenting Keynote Speaker Andy Gould And New Partnerships With The Hi-Hat, Highland Park Bowl And LACM

» [2017-09-05] TrendCulprit's "Music As A Business" Telesummit; All Aspects Of The Music Business, From Songwriting To Publishing To Distribution And Marketing Will Be Covered

» [2017-08-26] Audiofile Engineering Under New Ownership; Krekeltronics Acquires Leading MacOS And IOS Audio Company

» [2017-08-25] Songwriters Join BMG's Tech Team To Create New Royalties App; Thousands Of BMG Songwriters Will Be Able To See Up-to-date Worldwide Information On The Value And Source Of Their Income

» [2017-08-15] What's Next In Music? Focuses On China; This Year's "What's Next In Music?" Will Include A Panel Called "Focus Market: China"

» [2017-08-14] Because Acquires Majority Of Former London Records Catalogue; Because Group Acquires Warner Music 90, Encompassing A Majority Of Former London Records Catalogue

» [2017-08-10] BMG Expands In Canada To Build Its Records Business; BMG Is Scaling Up Its Recorded Music Operations In Canada With Dedicated A&R, Marketing And Promotion Resources In Toronto For The First Time

» [2017-08-10] Live Nation Responds To Growing Demand For Electronic Music In Asia With New Business Unit; The First Bill From Live Nation Electronic Asia Will Be A Tour From TiŽsto Supporting His Forthcoming Album CLUBLIFE VOL. 5: CHINA

» [2017-08-07] Streaming Music Services Help UK Entertainment Double Its Growth Rate; Ed Sheeran Trumps Star Wars And Fantastic Beasts To Deliver 2017's Biggest Seller So Far

» [2017-08-07] Paul Rosenberg Named CEO Of Def Jam Recordings; Paul Rosenberg, Renowned For Developing And Supporting The Careers Of Artists Including Eminem, 50 Cent And D12, Among Others

» [2017-08-07] PPL And PRS For Music Launch Music Recognition Technology Pilot; Pilot Includes Iconic Nightclubs Ministry Of Sound And Fabric And Major Club Chain The Deltic Group

» [2017-08-06] Discogs Releases 2017 Mid-Year Marketplace Analysis Nielsen Vs. Discogs - Database Highlights; Highlights Include Discogs (15% Growth) Versus Nielsen (17% Decline)
MusicDish Advertising Network

follow MusicDish on
Follow MusicDish on Twitter

Mi2N Music PR

Wreckshop Nation Releases Big Moe 4 Ever, A Tribute Documentary To A Legendary Southern Hip Hop Artist

Roger D'Arcy Releases New Album 'House Of Heads'

Hybrid Studios Announces Online Mastering Services

Music Entrepreneur Mia A. Irizarry Launches TrendCulprit's "Music As A Business Telesummit" Featuring Renowned Industry Specialists

Iggy Azalea, The Kills, TV On The Radio & The Legendary Wu Tang Clan Confirmed For 1St Off Weekend Festival

Strange Loops Releases Debut EP, New Era

Roger D'arcy Release 'Ordinary Man' As The First Track From His New Album The House Of Heads On August 24



Websites: Mi2N | MusicDish*China | MusicDish Network | MusicDishTV | Urban Music News Network
Services: Submit Article | Submit News | Submit Video | Artist Development | Premium PR Distribution

Copyright © 1997-2017 MusicDish LLC., all rights reserved.
About MusicDish e-Journal | Contact Us | Advertise | RSS | Internships