File Sharing - Possibilities for Marketing and Advertising
by Gary B. Smith
Snapshot History of File Sharing
File sharing has always been part of the Internet. But the history of file sharing really started with the initiation of the infamous Napster. Napster was the fist centralized system for file haring and was shut down due to copyright infringement allegations. Napster introduced a highly controversial method of information sharing which was attacked by some and lauded by others, including artists and those in the entertainment industry. What Napster started was the concept of an Internet outside the control of corporate domination. While it was attacked for manipulating copyright boundaries, other alternative systems were being developed.
One was OpenNap, a version of the Napster protocol, and was released as open source software. This and other alterative software systems continued to flourish even while Napster was being closed down. Similarly, the emergence of the Gnutella network was also initiated as a decentralized network. Gnutella was also open-source. A decentralized system meant that there was no central server and the files are 'distributed' - which makes them less vulnerable to legal liability. Decentralization also means that a broken link cannot affect all members of that service. Today Napster has been reinvented as a legal service. The numerous file sharing programs that are on offer today vary in type from the open Gnutella network to more legal Napster.
|
|
File sharing systems and software has become an intrinsic and common part of the Internet. Since the early days of Napster, file sharing software has been a contentious issue. However, some Internet pundits now feel the reality is that file sharing is developing into an ubiquitous and important part of the Web - despite opposition from the mainstream entertainment industry. There are also new developments in file sharing, which point to their use as advertising and marketing tools - especially for the Adult Industry.
The history of file sharing has largely been a heated battle between those who see file sharing as a new and innovative means of media distribution and those who see it as infringement of copyright and a danger to the entertainment industry.
While the battle around copyright and file sharing continues, there are signs that file sharing systems are winning out and increasing their presence on the Internet. One indication of this can be seen in the recent federal appeals court decision that peer-to-peer file-sharing services Morpheus and Grokster were legal. MGM had contended that Grokster was responsible for the "illegal" downloading of entertainment media. However, the court ruled that "these services should not be held liable for the illegal behavior of their users." (LINK)
Although this is an obvious blow to the mainstream entertainment and movie industry, it is also an indication that the future lies in more creative acceptance of file sharing. There is something prophetic in the upbeat response of StreamCast Networks CEO Michael Weiss, operator of Morpheus Glockster, who said after the recent legal decision that "... history will prove this to be a bigger win for the entertainment industry. Hopefully they will now embrace new technologies, like Morpheus, to seek new opportunities for artists and creators in the digital domain rather then spend their time and money trying to stifle progress." It's clear therefore that the weight of innovation and user numbers is on the side of file sharing technology.
The numbers attest to the increasing usage of file sharing systems. For example, Fastrack, the network that the popular Kazaa program connects to, has four million users and 5,000 terabytes of share data. The eDonkey2000 network continues to grow with 2-million users and counting, while the well-known Gnutella Network has over 200, 000 users and a growing user-base. According to the Yankee Group research firm, there are an estimated 57-million Americans who make use of file sharing systems. (LINK)
The Marketing Advantages of File Sharing
While the debate about copyright and file sharing continues, some companies are quietly going ahead with initiatives to use file sharing to their advantage. Big Champagne is one such company that is tracking downloads to ascertain user and product patterns, while the Jun Group is actually releasing music to file sharers to "generate buzz." (LINK)
Many companies have realized the value of using the download data from file sharing software and systems to develop marketing plans and strategies. Companies like Big Champagne track networks such as Kazaa and Morpheus and use the data to leverage air-time for their music on radio stations.
The truth is that despite the entertainment industry attack on file sharing, a more pragmatic approach is beginning to surface with the realization that file sharing is probably here to stay. Many companies are in fact paying for access to R&D data and innovative ideas about file sharing and downloading patterns. "By following the buzz online, they can determine where geographically to market specific artists for maximum profitability." (LINK)
File sharing can be used creatively to generate sales. For example, viral marketing has the potential to sell movies, books or any kind of entertainment media. Simply put, the enormous potential of P2P and file sharing systems can be used to connect to the client or customer by generating interest. Then the systems or software can be used to track these interests and develop comprehensive digital research platforms.
The Adult Industry and File Sharing
Alternative views are producing many innovative ways of harnessing the potential massive growth of file sharing to promote products and services. The Adult Industry has been one of the first to identify the potential for marketing and advertising in file sharing.
While many in the entertainment industry are concerned about the affect of, and spin off from, file sharing, many in the Adult Industry are positively enthusiastic about the potential of this technology. For example, David Schlesinger, VP for Internet Marketing at Vivid Video, states that file sharing could have definite advantages for the industry. "If surfers find a snippet from a movie, it might entice them into buying the whole tape. We can actually turn these shared files into mini-infomercials."
The general idea is that by downloading short video snippets users will become more aware of the product and consequently purchase the full video. This prospect is bolstered by the fact that it is much more convenient and practical at the moment to download or share short video clips, as opposed to the full version, which may weigh in at 100 MB or more. Interestingly, it is estimated that part of the boom in peer-to-peer file sharing is the increase in video downloads, which are actually exceeding music downloads by comparison. (LINK)
This fact has not gone unnoticed by the Adult Entertainment Industry; there is certainly enough potential for marketing within file sharing systems. In a new study it was revealed that "pornography accounts for more than 40 percent of the traffic on the Gnutella network, which connects such file-sharing services as Morpheus, LimeWire and BearShare." (LINK)
However, there are divergent views within the industry. While Vivid sees the download of snippets as a great way of promoting their products, other industry players such as Wicked Films are more cautious about the infringement of their copyright. These views are also a reflection of the ongoing debate about the positive versus the negative effects of file sharing. Wicked Films are also worried that as download times and broadband increase, this could pose a threat to the industry.
But, what about the future? What about the day when monster bandwidth means that downloading a full-length, full-quality adult feature will be as quick and easy as bootlegging a Metallica CD today? "It's definitely something to worry about," says Joy King, VP of Wicked. "If we can't protect our copyright interests, it's just a big free-for-all. Our content is our asset, so for people to take it and share it defeats our purpose as a company."
(LINK)
This relates to a further aspect that should be taken into account when assessing the viability of file sharing for adult entertainment. There is a huge difference between video and music files in terms of size and download time; even downloading a video snippet can take a large slice of one's disc drive and hours to download.
Downloading large video files, at least in the short term, is still out of range of most file sharers. This places the emphasis on short snippets and adverts for larger video files, which increases the viability of using file sharing as a marketing and advertising medium.
The use of video clips as adverts on file sharing systems can be very effective as it will work like viral marketing with numerous downloads promoted by users within the network themselves. "The more they bounce around the Internet, the more they spread the message about a film company's product, creating a de facto viral marketing campaign. Vivid already provides full-length, RealPlayer versions of its films at its Web site."
(LINK)
Janis Ian sums up the present situation with regard to file sharing: "The Internet, and downloading, is here to stay ... anyone who thinks otherwise should prepare themselves to end up on the slagheap of history." (LINK)
While the writing certainly seems to be on the wall that the development of new improved file sharing software is a reality, these systems are - apart from being utilized as advertising and marketing tools by clients in the Adult Industry - also being developed with the aim of side-stepping charges of copyright infringement and piracy.
Software developers are designing some new file sharing networks that will make it harder for the music and file industry to prove cases of piracy. Reuters reports that there are three file sharing networks being planned "which its users think will make it a lot harder for the music industry to track and charge people on their networks. Techniques being used are, "(a) multiple Internet protocol (IP) addresses; (b) files in the network disguised to look entirely generic; (c) multiple IP addresses are taken from other users on the network to camouflage individual activities; (d) use of third-party proxies' computers to disguise trails of sharers; and (e) encryption to protect identity of users." (LINK)
As is often the case in the history of new technologies, the initial reaction and antagonism gradually changes to acceptance when the realization seeps through that technological progress cannot be inhibited. The entertainment industry is already awakening to this realization. If the file sharing trend continues to grow and develop, this will mean that it presents a viable and creative environment for innovative marketing and advertising techniques.
|
Printer
Friendly Version