As peer-to-peer file sharing becomes more popular among Internet users, recording companies are increasingly trying to lobby Congress to allow them to partake in active online sabotage. The record companies have come up with several strategies in an increasing order of severity to try to stay the flow of online music sharing. Many of these strategies, however, will prove useless as peer-to-peer networks and individual users form methods to stymie the influence of the record companies' tactics. In addition, some of these techniques may prove to be invasions of privacy and may violate anti-hacking laws. The record companies should instead focus their efforts and resources on reestablishing their market power through more productive marketing and sales strategies.
For the past several years, national record sales have declined. Record companies have taken to blaming the onslaught of online file sharing as the major cause of weak sales. Through their influence, the record companies were legally able to limit the power of the first major file-sharing network, Napster, which ultimately led to a decline in its popularity.
The record companies have come up with new, more active tactics to combat the transfer of music online. Among these, they plan to flood peer-to-peer networks with a bonanza of phony songs, which will not only frustrate and hopefully discourage Internet users from downloading copy written music, but should make those downloads more difficult because the networks will be flooded with fake material. Rather than expend energy in trying to limit something they can't stop, record companies should instead be using their resources to promote more business.
More alarming is the record companies' suggestion to track online music traders with automated software ("Record labels seek OK for P2P sabotage," CNN.com, Sept. 27). This tactic not only goes too far, but also will ultimately prove to be a waste of resources and an image-killer for the record companies that engage in these activities. Peer-to-peer file sharing is such a widespread phenomenon that Internet user tracking would encompass millions of people across the United States. Also, automated user tracking is a questionable technique that reeks of privacy violation and should not be legal.
The record companies' victory against Napster was short-lived and proved to be harmful in the long run. Napster's defeat aided and accelerated the creation of "next generation" music trading programs such as Kazaa and Morpheus, which are nearly impossible to regulate or shut down, and are sometimes centered overseas away from congressional jurisdiction. In the same vein, should the recording industry decide to actively pursue these methods, they will find themselves embroiled in an "online arms race." Kazaa and Morpheus already have released improved versions of their network systems that screen out questionable files, such as those that the recording companies hope to put online to discourage file downloads. History has proven the online industry to be increasingly resilient to change. Like the mythical beast Hydra that would grow two horrible heads for every one that got cut off, every attack the record companies launch only will result in greater problems than the ones they were trying to remedy originally.
Instead of trying to combat fire with fire, the record companies should focus on more creative and productive ways to reinvigorate their falling music sales. Perhaps the online file trading industry is not the true culprit, but it is rather that the music that these companies have been releasing is not valued highly enough by consumers to be purchased. If music has indeed become overvalued in today's marketplace, the recording industry must conduct market research and price its products according to consumer demand.
Through the rapidly growing global Internet, file sharing seems to be an activity that will be around indefinitely. The record companies must come up with more viable alternatives to get back into the market. One possible solution would be to include highly valued features on music products that could not be downloaded off the Internet. A CD could offer artist interviews, music videos, concert footage or games that would justify the prices record companies charge for their products.
Engaging in online sabotage will ultimately do little to remedy the record industry's woes. If the recording industry is about to start an online arms race, they will most probably lose. The record companies' only hope is to add value to their products in a way that will allow them to become competitive in today's marketplace.
(Alex Rosemblat's column appears Wednesdays
in The Cavalier Daily. He can be reached at
arosemblat@cavalierdaily.com.)
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