home
search
back issues
about

contact


Sign up for the tweney report, my free email newsletter!

more about the tweney report

Recommend this page to a friend or colleague

 

Other Tweneys:

Ryan

Chris

Looking for Tweeny.com?

 

 

 

the tweney report


   
 

published 27 July 2000

Live fast, die young
by Dylan Tweney

Yesterday, San Francisco district court judge Marilyn Patel ordered Napster to stop its traffic in copyrighted material, effectively putting an end to the the year-old company [1]. Napster has appealed the injunction, but don't hold your breath [2].

This is probably the company's death blow, as they're unlikely to win the suit filed against them by the Recording Industry Association of America (RIAA). Let's face it, even in the Internet economy you can't get away with starting a company that's built on stealing other people's stuff. Barring an eleventh-hour intervention, Napster will go dark at midnight tomorrow. It may be the first example of a truly rock-star company: Napster lived fast, flouted the rules, got tons of press, and died young.

Napster argued, unsuccessfully, that it was not responsible for the illegal use of its service, and that the company had no way to know when users were trading copyrighted songs through the Napster network. Too bad, said Patel: because they designed their system that way, that's Napster's problem. "It's sort of becoming an orphan by your own hand and then throwing yourself on the mercy of the court because you're an orphan," Patel wrote in her opinion [3].

Shutting down Napster won't stop the traffic in copyrighted songs on the Internet -- far from it. As I wrote awhile back, Napster is already being made obsolete by technologies that, unlike Napster, are entirely decentralized [4]. Gnutella and FreeNet also allow people to trade music files, and in their cases, there's not even a company to sue -- they're just technologies, unleashed on the Internet.

In fact, the music industry will soon regret that they killed Napster. Napster's 20 million users are nothing if not interested music fans -- and via Napster, the record labels could at least potentially get in touch with those fans. Preliminary studies have suggested that people who trade MP3 files tend to buy more CDs, rather than fewer, perhaps because they've had a chance to try out the music first. With the right deal, record companies could have used the Napster database as a tremendous research and direct-marketing resource -- and I have no doubt that the Napster executives were eager to make a deal.

Another possibility: Downloading music via Napster was and is subject to the vagaries of the Net. It's even worse when you're trying to download a popular song from somebody who has a poor Internet connection. I bet many Napster users would have been willing to pay a fee in order to download songs, via Napster, from a big server that could guarantee quick delivery of the MP3s they wanted. The record companies certainly could have made a tidy profit running such servers and charging for access.

But that's all history now. With Napster dead, its 20 million users will scatter to other services, like Gnutella and FreeNet. That's too bad for the record industry, because with Gnutella and FreeNet there's no easy way to tell who the users are. There's no central database of users and what they have downloaded. In other words, they are useless as marketing tools.

Meanwhile, copyright will continue to be eroded by the free trade of intellectual property on the Net. It won't happen this year, and it may not even happen this decade, but copyright will eventually go the way of primogeniture and jus primae noctis -- barbaric medieval laws now thankfully dead. And then, those who profit from copyright (who have always been corporations, not artists or writers) will be out in the cold.

History may just record Napster's demise as the record industry's last brilliantly self-destructive act.

[1] Judge issues injunction against Napster

[2] Napster files injunction appeal

[3] Napster must stop music

[4] Inevitable technology

 

 

 

 

 

 



An interesting Wharton study DEBUNKS WEB TRAFFIC as a meaningful measure of online retail success. Just having a highly-trafficked site doesn't mean you're getting the right kinds of customers, or even the right kinds of traffic, according to the study [5].

By studying traffic patterns at two big e-tailing sites, the Wharton study found some interesting behavior patterns. Shortly after discovering a site, people tend to visit it more frequently and to explore more of the site's pages. But over time, they tend to visit less -- and their visits are much more directed when they do return. In other words, a site's traffic could be increasing -- but if that increased traffic is due entirely to first-time visitors, it doesn't bode well for the site's long-term prospects. You can't just keep churning through new customers.

Rather than simply examining overall traffic, the Wharton study recommends looking for repeat visitors who come back to the Web site more frequently over time, rather than less frequently. These more-promising potential customers can then be targeted for better treatment -- for example, shifting them over to higher-capacity servers.

One caveat: The study is based on just two retailing sites, and the traffic data analyzed is from 1998. So online retail traffic patterns may have shifted significantly since then.

[5] High traffic streams need not lead to more business

   
 

No, you haven't missed any issues of the Tweney Report -- we've been on a SUMMER PUBLISHING SCHEDULE here at Tweney Media world headquarters. That means that the Tweney Report goes out approximately, well, whenever we have something to say and aren't too busy walking the dog or practicing the banjo or something. In the Fall we'll probably be able to return to a more frequent schedule. Heck, you all are probably on vacation anyway.

In the meantime, if you really want a weekly dose of technology analysis, check out my new online column for eCompany. I'm writing the "Defogger" column, in which I'll demystify a new technical topic every week. To sign up for the Defogger, visit the eCompany Web site [6].

Other stories I've published recently include a guide to picking an e-commerce consultant [7], an overview of online customer service [8], and a collection of tips on eliminating DSL and cable modem headaches [9]. Check 'em out!

[6] eCompany Now

[7] How to Pick an E-commerce Consultant

[8] Who Needs Customer Service Online? You Do.

[9] Avoid Broadband Headaches

   
 

~ Back issues ~

It's the phone, stupid: Internet-enabled cell phones are the wave of the future, but don't look for the "wireless web" -- their killer app is something else altogether (8 June 2000).

Inevitable technology: Napster is already obsolete -- and so too intellectual property, if Freenet takes off (25 May 2000).

Lower your expectations: Layoffs at startups continue, as venture capitalists begin investing more cautiously; what's your upside?; B2B marketplaces step up press release production (15 May 2000).

Sue your customers: Metallica is on a mission to stop Napster users from stealing its intellectual property; can the Net survive? (8 May 2000).

The whole dang archive...

   
       
 
 
 
 
 
-
copyright (c) 1998-2001 tweney media
-

home | search | contact