Peer-to-peer digital delivery

Though still relatively new, the P2P file-sharing marketplace is evolving rapidly. It may be one of the most important factors in changing how digital delivery is done. Together with new compression technologies and formats like MP3 and more widely shared and faster broadband access, this technology has also greatly influenced how traditional entertainment industries operate. Moreover, specific challenges for copyright protection are raised.
This section of the Chapter 5 of the Information Technology Outlook 2004 focuses on measuring the use of P2P networks for the non-commercial downloading of music, video and software files in OECD countries. Free downloading of music, films, or other files does not generate revenues for copyright holders (artists, music, publishers) and may negatively impact the development of new legitimate services delivering music, movies, etc. to customers. Some argue that downloading supplements regular purchases of music or serves as way to sample new music (Pew, 2003). However, the recording industry has also warned that free downloading poses a severe threat to the music industry in terms of diminishing sales. 1 There are currently a significant number of lawsuits in OECD countries to prevent infringement of copyright when P2P networks are used to share commercial music and films. This section analyses the current impact of this new technology for digital delivery as a way to shed light on the potential for the commercial use of P2P technologies and policy issues.

Peer-to-peer file sharing