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Leslie Diamond (Ecole des Ponts Business School); Tawfik Jelassi (Ecole des Ponts Business School); T Lennon (Ecole des Ponts Business School)
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23 pages
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Ever since they succeeded in closing down the original Napster in 1999, the major music companies have struggled to deal with its successors - the peer-to-peer (P2P) networks. Yet, is this really the paradigm shift that many claim it to be? Is P2P directly responsible for the tumbling sales of music between 1999 and 2003? Putting together the emotional response which many people have for music with the hard-nosed world of business is always likely to be a balancing act. This case study should help to look at how established industries respond to threats, and to consider the complexity of the value chain between the original producer of a product (the writer or performer) and the end user - the consumer, who buys the CDs and merchandise.
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