Effects of Illegal Mp3 Download on the Music Industry

April 15, 2020 By:

Mp3 Download is becoming viral on the internet. The RIAA is a trade organization which Promotes and supports the financial and creative vitality of major music companies in the world.

Brief Origin of Music File Sharing

Brief History Of Music Sharing

Music Sharing was made possible by Napster in the year 1999. Napster is an Online music Sharing Platform, whose main objective is illegal Mp3 file sharing.

Before the mid-1990s, file sharing was something that was done in the underground worlds of the Internet and technology. Programs like ICQ (Internet Chat Query), Hotline and FTP (File Transfer Protocol) were among the main providers of file sharing.

In 1999, music sharing entered the mainstream with Napster. This company is dedicated to providing all types of music to the world for free. Napster allowed all music lovers to share their collections (Fuchs, B., Schroeder, A., Siddiqui, F. and VanderSluis, B).

How Illegal Mp3 File Sharing Became a Crime.

Effects of Illegal Mp3 Download

Since Napster’s age, there have been several legal battles and rulings over file sharing.

Music artists and the Record Industry Association of America (RIAA) claimed that file sharing was piracy and, ultimately, a copyright violation.

The music industry “quickly accused Internet piracy of causing CD sales to drop. However, an investigation by Forrester Research in August 2002 concluded that this was not true.

The company said regular digital music consumers were buying no less than CDs and that the 15% drop in music sales over two years was due to the recession and competition from the booming video game and DVD markets. . “(McManus, S), but ultimately Napster was forced to stop / block sharing of copy writing material, forcing it to stop sharing all files.

Meanwhile, other savvy entrepreneurs like Napster creator Shawn Fanning had made plans for file sharing networks and revamped the way things worked to create P2P (McManus, S).

P2P (Peer 2 Peer), is a network that allows computer hardware and software to operate or share files without the need for special server devices.

It is an alternative to the client-server network design used with previous file sharing networks. P2P also known as People 2 People, giving this acronym a sense of networking, building a community and a social network between people and businesses allowing technology to act as a bridge (Mitchell, M).

Users Now Pay For Subscription to Share Music

Illegal Mp3 Download

Given the legality of file sharing, although networks have found a way around piracy by forcing users to pay subscriptions to share music, I find it easier to keep buying CDs and then create the mine. I love having a variety of songs, artists and genres in any music player at the time. This is why I chose to teach how to burn a CD from an original, rather than sharing files over a P2P network. That way it’s cheaper and safer for me and for you.

Negative Effects of Illegal Mp3 Download

  • Low sales.
  • The more revenues slump, the less labels are willing to sign new and innovative acts.
  • Able to provide free file downloads to consumers on the Internet.
  • Make money by selling ad space to companies (Google).
  • Evaluating economic profit.
  • Loss of hard-copy sales (records/CDs) = Stores closing.
  • Hurting music executives and musicians.
  • Decreases royalties for artists.
  • Both TR and Financial Profit decreases while TC remains Constant.
  • Affects legal businesses (ie. Spotify).
  • Low Pay for artists $0.004 per play.
  • How does illegal file sharing affect the music industry?


  • Illegal downloads have virtually no negative effect on the number of legal downloads
  • Legal purchases would be about 2% lower with no illegal downloads available
  • Technology is constantly evolving, making internet hacking difficult
  • Illegal downloaders have been active in music consumption for more than double the year compared to only legal consumers (including being more active on legal sites)
  • Number of buyers
  • Determinant of the question
  • Competition promotes a healthy market
  • Abolish monopoly service

How does illegal file sharing affect the music industry?

  • Negative – hurting musicians, managers and music companies
  • Positive: increase in the number of buyers and consumption (advertising)

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