The public wasn’t willing to wait for Sony and the rest to wake up and offer a service that was as compelling, exciting, and versatile as Napster. Instead, they flocked to a new generation of services like Kazaa and the various Gnutella networks.
Kazaa’s business-model was to set up offshore, on the tiny Polynesian island of Vanuatu, and bundle spyware with its software, making its profits off of fees from spyware crooks. Kazaa didn’t want to pay billions for record industry licenses — they used the international legal and finance system to hopelessly snarl the RIAA’s members through half a decade of wild profitability. The company was eventually brought to ground, but the founders walked away and started Skype and then Joost.
// Doctorow, Cory. Why Is Hollywood Making a Sequel to the Napster Wars? InformationWeek, August 14, 2007. |