How can file sharing networks make money if they do not sell music?
There are two main ways to make money using such networks
1. Advertisement.
Everything is obvious here, no need in further explanations.
2. Premium-stuff offers.
Usually, you can download/upload everything you want, but there will be limits. Limited download speed, limited file-size, limited storage time etc. So web-site provides solution (that should necessarily
occupy half of the screen and look like something REALLY PREMIUM): Don't suffer, just click that ENORMOUS button and everything will be better, faster, bigger!
That's why web-site offers you to buy some special access or premium account.
In which type of eCommerse do file sharing networks belong to?
There are 4 main types of eС
ommerce (B2C, B2B, C2C, P2P). And file sharing companies can be divided into two main groups. First one is torrents and it is P2P type, using peers as file-storage and the second one is other file sharing companies that provides file-storage by themselves and they are usually B2C or C2C.
Is the record industry justified in attempting to shut file sharing networks down? Why or why not?
There are some points:
On one hand this method of file sharing is absolutely illegal. Record industry, definitely, is losing lots of money because of these resources. On the other hand this provides a good advertisement of the product or a company.
Nevertheless, I think, that this industry loses waaay much more than they receive. So yep, It is completely justified.
Do you think that illegal downloading will disappear over time?
Nope. There will be always people, who would love to get something for free if it is possible. Anyway even if such networks will completely disappear from the Internet, there will be still some anonimous networks like I2P
