By Ian
Echoing Steve Verdon's words disagreeing with Zimran Ahmed, I simply can't take the marginal cost of music via Napster or Kazaa to be $0, and for precisely the same reasons Steve mentions -- the costs are the effort to locate the song and then the time it takes to download several versions in the hopes of getting one good one copy. Given what else you might be doing with your computer at the time (the programs are RAM-heavy and the downloads can choke even a DSL line), the opportunity costs aren't exactly ignorable.
To emphasize this point, there is a new tactic in the market for fighting illegal downloading of music: frustrating the music pirates to the point where the effort is no longer worth the benefit of locating the song. This is done through flooding the P2P systems with bogus files that mimic real files.
A computer science professor and graduate student have been awarded a patent for a method of thwarting illegal file sharing on peer-to-peer networks by flooding the network with bogus files that look like pirated music.The software creates bogus files with attributes -- such as file names and description tags -- that make them look like the real thing, but they are in fact white noise, low-quality recordings or advertisements to buy the song. What's more, the software sends out thousands of decoys to frustrate P2P users with fruitless downloads.
The marginal costs might have just gotten a lot higher.
Posted at May 8, 2004 06:02 PM
I was wondering if such a strategy would be used. Makes alot of sense since I don't think it would be illegal and it could be very frustrating.
Comment by Steve at May 8, 2004 08:15 PM | PermalinkI have given up on using music sharing services for this very reason - it is so time consuming that I would prefer to just buy the music or do without it. While I do not know the demographics of file sharing users, I would guess that it is composed primarily of people who have lots of free bandwidth and free time, like college students.
Comment by Rob at May 15, 2004 03:16 PM | Permalink
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