Monday, June 04, 2007

How Napster Changed The World?

Napster changed the world in numerous ways. The first way was by gaining so many new users in such a short amount of time. They went from only one million users to about 7 million users in just a few months. Napster's soul purpose was to provide people with a way to purchase individual songs instead of buying a whole CD. Record labels didn't like this idea because of their contracts with their artists. They had contracts that only covered CD sales, which means all their songs being sold at once. Napster's way was to sell songs individually and create more of a profit for the artists. This was a whole new way of thinking at the time and wasn't accepted by the record labels.

Record companies can never really win against pirated music because there are so many ways to acquire the pirated music. If these companies didn't push to shut down Napster, the companies would have actually gotten some money out of everyone downloading all the songs. Now, there is no change for these companies to earn any money of these new programs out there because its impossible to shut them all down.
Emerging technologies in our society have to be careful that the same thing doesn't happen to them. New technology needs to remember not to go ahead of the market because creating a new market, business models, and value propositions is very time consuming and costly. They have to understand who their customers are, the problems they are trying to solve, and how much they are they are willing to pay for it. New technologies also have to remember to never focus on solving a big company's problem because the big companies usually will reject your new idea. Also, they have to be sure to test their assumptions before heading to the market. They can do this by interviewing potential customers.

I personally think that Napster introduced a whole new way of acquiring songs and music and changed the world to millions of people.

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