File-sharing Networks Return with Legitimate Ways to Share Music -- and Make Money - Knowledge@Wharton

P2P file sharing sites have been famously operating in the music business for years. Initially, they simply stole music and made it available, but various court rulings have made that illegal and most of the large operators in that area have closed down or converted to legal activities. However, numerous P2P sites still exist and many are trying to find a business model that enables them to continue to function and even make money. It's been difficult but some are making some headway with it. One of the issues for example is that P2P theoretically means participants willingly share all their music. However, experience has shown that while many are eager to obtain free music, fewer are willing to share it - the "freeriders". So perhaps it they are paid, they will. This means the music needs to be sold or some other revenue needs to be found to fund the payments. This article from Wharton outlines the progress that is being made with issues like this. http://knowledge.wharton.upenn.edu/article.cfm;jsessionid=a83081ecae696c475e34?articleid=2025