Tech Still One Step Ahead: New Service Downloads Torrents Directly To Dropbox

from the it's-unstoppable dept

Update: Well, that didn't take long. Dropbox has already blocked Boxopus.

Every time some sort of file sharing service is shut down or someone else is arrested, we hear the regular crew of supporters of the existing copyright regime declare victory. But, every time, people just shift to some other service and move on. None of it leads people to suddenly spend money again when they hadn't before. TorrentFreak recently had an article about a service calls Boxopus, which uses Dropbox's API to automatically download content from torrents to a Dropbox file. Think of it as torrenting in the cloud. From a user perspective, there are plenty of advantages, including the fact that the content is then available on all your synced devices. Of course, there's also the fact that for an end user, it's somewhat anonymous -- since Boxopus is the "downloader" rather than the user themselves. So if the content is infringing, it's more difficult to track them down (though, I would imagine not impossible, if someone got access to Boxopus' logs). Apparently, a number of services have already implemented this as a download option. Of course, this probably just means that Boxopus will soon be targeted as a "problem" even though it has plenty of non-infringing uses, and actually could be quite handy for all kinds of authorized activities in a more cloud-centric universe.

Either way, what strikes me about this is a simple fact: the technology always advances. It sees areas where people try to stop it, and figures out a way to route around it. Whether or not people like this, it exists, and tons of other, similar offerings will likely exist in short order. You can fight the tide -- as some seem to want to do -- or you can look at ways that you might take advantage of tools like this. Only one of those is a winning strategy.

Filed Under: api, file sharing, torrents
Companies: dropbox

David Lowery Wants A Pony

from the the-rest-of-us-live-in-reality dept

I'm kind of amazed at how many people have been sending over, tweeting or submitting David Lowery's "Letter to Emily White at NPR All Songs Considered." Everyone seems to think there's something worth commenting on there, but I can't find it, frankly. Lowery, as we've discussed before, has some nonsensical ideas about the strawman he thinks is "the new music business model" which is somehow worse than "the old music business model." He's both right and wrong. It's "worse" for some people and better for others, but there's one thing that's not debatable: it's not going away.

His letter to Emily is both right and wrong. He exaggerates what Emily actually said, and paints her as some massive pirate, despite the fact that she doesn't use file sharing networks and the gist of her blog post at NPR was basically that she and her generation just don't see the point of "owning" music any more since it's so widely available. Access, not ownership, as they say. But to Lowery, that appears to be a huge sin, because the way a few musicians made money in the past was to sell music, and thus, forever must it be the same.

Toss in some righteous indignation that some tech companies have figured out ways to provide useful services that people want to buy, a confusion over correlation and causation... and suddenly Lowery claims to have made a "moral" argument that we should all go back to paying for music in a world where many people don't see how that makes sense.

Yes, and I'd like a pony too.

Look, I spend an inordinate amount of time looking at new business models for content, because I think it's important to support culture. But my focus is on what's working in today's market, not pining for the way things used to be. As Bob Lefsetz eloquently said in response to Lowery:

While we’re at it, why don’t we save the printers’ jobs too. And bring back Smith-Corona. That company had employees…

I believe artists should be paid. But that does not mean they should be paid the same way they used to be

There are amazing new business models that work. What doesn't work is sitting around and pining for the old days or lecturing people on a "morality" that they clearly don't agree with (and its even worse when you try to make them guilty for using services they find useful). That's just not a workable strategy. Again, to Lefsetz:

To be fighting file-sharing is akin to protesting dot matrix printers. File-trading is on its way out. Because it takes too much time to do it. And you don’t fight piracy with laws, but economic solutions. It doesn’t pay to steal if you can listen instantly on Spotify and its ilk.

And please stop bitching about the low payouts… That’s like saying Apple should liquidate and give the proceeds back to its stockholders, which is what Michael Dell so famously said in the nineties. Spotify is a trojan horse. You get hooked, and then you pay for higher quality on your mobile. Facebook stock gets hammered because of its inadequate mobile strategy and you’re not smart enough to see the connection to music??? You can’t get Spotify and its brethren on your handset without paying. And you will. Because you like the convenience of having all your music at your fingertips all the time.

The complaints of low Spotify payouts are a mirage. Go talk to Jeff Price, a guy who knows this stuff better than just about anyone, and let him explain just how the streaming world is developing. There's a huge and growing opportunity here, and people who look at the snapshot view rather than the trends are missing the big picture. The innovator's dilemma teaches us that the old guard always mocks the new players for being too small or not paying enough. But they miss the trendlines for the snapshot. And when the trendlines converge, they get run over.

David Lowery can ask for a pony all he wants, but it doesn't change the reality. Let's focus on the reality of the models that are working and the opportunities to enable more great new things. Lefsetz points out that we should focus on making great music and the other things will start to sort themselves out. Price points out that if we focus on enabling more useful services (the kind that Lowery dumps on) there's a ton of money to be made (more than ever before). There's a world of opportunity there, but David Lowery wants a pony and wants to make a moral example out of a young music lover who just wants to listen to music.

David Lowery wants his pony, sees a tide to hold back, and plenty of windmills to tilt at, but the rest of us prefer to live in the real world.

Filed Under: bob lefsetz, david lowery, emily white, file sharing
Companies: spotify

North Korean Study Confirms It: People Will Share, Whatever The Risks

from the fact-of-life dept

A couple of weeks ago, I wrote about how the ever-increasing storage capacity of portable hard drives made it unlikely that the sharing of music could ever be stopped. That was a somewhat theoretical piece based on general trends in technology; but here's some supporting data from a rather unusual source: North Korea (aka the "Democratic People's Republic of Korea" - DPRK).

It comes in the form of an extensive study entitled "A Quiet Opening: North Koreans in a Changing Media Environment" (pdf). It's long but really worth reading for the insights it gives into a world that has been almost entirely hidden from the West for half a century. Rather surprisingly, it shows the impact that the physical sharing of pirated materials from South Korea and elsewhere is having on the once isolated nation. As TorrentFreak puts it:

With Internet unavailable to all but a tiny percentage of the elite, citizens of North Korea are obtaining their information through other means, notably file-sharing devices such as DVDs, MP3 and MP4 players, and USB drives.

The vast majority of those music and video players are owned by young people:

"About 70-80 percent of people that have MP3/4 players are young people," a 44-year-old male who left DPRK in 2010 reports. "When you do a crackdown of MP3/4 players among high school and university students, you see that 100 percent of them have South Korean music."

That's significant because the penalties for anyone caught with forbidden music and videos are severe: months or even years in a North Korean prison camp. TorrentFreak makes the obvious connection:

despite the massive risks, young people in the DPRK are apparently prepared to defy the regime by consuming unauthorized media anyway, something they have in common with the US youth who share files in the face of $150,000 statutory damages.

That explains why the copyright industries' current approach to enforcement isn't working, and -- more importantly -- why it will never work, no matter how harsh the penalties become. Whatever the risks, people will carry on sharing.

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Filed Under: file sharing, north korea, piracy

Regina Spektor: I'm Lucky That People Can Get All My Music For Free

from the spread-the-love dept

We recently wrote about how both Amanda Palmer and Steve Albini think that file sharing is great for musicians. In the comments to that post, dwg pointed us to a new interview with musician Regina Spektor. The whole interview is interesting, but at the end there's a tidbit on how she feels about file sharing:

"I grew up poor, and there are a lot of people that grew up a lot poorer than I am," Spektor says. "Though, to me, I think that if somebody doesn't have an easy life, they should at least have access to free books and film and music. I think that I feel very lucky to live in this time where people can go online and get everything I've ever made, whether they have a lot of money or not.

"So much of the music that I found out about — whether it was late, it's better than never — was through people burning CDs for me and people making cassette mixes for me and people giving it to me for free. I feel really grateful that people can just type in my name and listen to things that I made. I feel so lucky for that."

Of course, I would imagine that her music label, Sire Records, a subsidiary of Warner Music, might not appreciate her saying that. Still, it's good to see more artists speaking out on this topic and combating the silly "sharing is theft" argument that the RIAA wants everyone to believe.

Filed Under: file sharing, free music, regina spektor
Companies: riaa, sire records, warner music

Tougher Enforcement In Sweden Doesn't Slow Down Public's File Sharing

from the of-course-not dept

For years we've argued over and over again that stricter enforcement does nothing to slow down or stop infringement. Often it does the opposite -- either by making more people aware of the possibilities to infringe, or driving people further underground. The industry insists that it needs stricter enforcement on a bizarre and widely discredited theory that such strong enforcement is effective as an "education" technique. You hear this all the time from entertainment industry execs. They're so bought into their infatuation with copyright, that they think the only possible reason why people don't respect the law is that they haven't been "educated" enough about it -- and what better way to "educate" than to crack down hard?

Except, it never works. It never has and it never will. Increasing enforcement has never -- not once -- been shown to be an effective long term solution to stopping infringement. It does appear to have short-term effects, as it makes people scatter from actions that are easily trackable, but within a few months (six seems to be about the consensus), file sharing activity tends to find a new path and get back to the same trajectory it was on before.

We've now got some more data to support this. A few years back, Sweden passed a very draconian and aggressive enforcement law known as IPRED (Intellectual Property Rights Enforcement Directive), which had the result of a temporary blip in file sharing that disappeared pretty quickly. And now, a new research report has come out showing that just as many 15 to 25-year-olds share unauthorized content online as did so at the time IPRED became law. In fact, a larger percentage of that age group share "heavily," rather than in smaller amounts.

“We can safely say that the repressive legal developments in this field have very weak support in informal social control mechanisms of society”, says Mans Svensson, Ph.D. in judicial sociology, one of the researchers doing the study. “The social pressure is close to non-existent.”

So why is it that we keep seeing countries pass these kinds of laws? And why do entertainment industry lobbyists keep pushing for them when they're so woefully ineffective in doing anything positive?

Filed Under: education, file sharing, ipred, mans svensson, sweden

Greece Stares Into the Abyss; Meanwhile, Local Music And Audiovisual Collecting Society Gets Court Order To Block Web Sites

from the question-of-priorities dept

As you may have heard, Greece is having a spot of bother at the moment. Its economy shrank by 6.2% in the last three months alone, and the austerity measures imposed in return for international loans to keep the country running have contributed to a 40% jump in the suicide rate.

But the Greek music and audiovisual collecting society hasn't let a little thing like a national meltdown prevent it from tackling the really serious problems in life -- like stopping people sharing files online (Greek original):

The Court of First Instance Court in Athens accepted the request of the collecting society for music and audiovisual works to order, among other things, that the Greek ISPs should take technical measures to make it impossible for their subscribers to access Web sites through which illegal posting and exchange of works can take place.

Amidst the deepening Greek tragedy, it's good to see someone offering a little comedy.

Follow me @glynmoody on Twitter or identi.ca, and on Google+

Filed Under: collection society, file sharing, greece

Russian Appeals Court Says Popular Social Network vKontakte Is Liable For File Sharing By Users

from the third-party-liability dept

The Russian social network site vKontakte is often called "The Facebook of Russia," in large part because it looks a lot like Facebook. It's incredibly popular across the Russian-speaking region (Russia, Ukraine, Belarus, etc.). However, for years, the entertainment industry has argued that the main reason it's so popular is because it has a built in file sharing feature, which is regularly used for the unauthorized sharing of music files. It's no secret that plenty of unauthorized music gets shared this way -- and we've even seen other file sharing platforms (even those targeted outside of Russian-speaking countries) built on top of vKontakte's system. A court had ruled that the site was liable earlier this year, and now an appeals court has backed that up. The full details aren't entirely clear, as most of the information so far comes from a gloating press release from IFPI. If there are specific activities that vKontakte does to encourage unauthorized sharing that's one thing, but merely having a feature that allows individuals to share files seems like a perfectly legitimate feature. The fact that it's widely used to infringe shouldn't put the blame on the service provider automatically. It would be great to see more details of the ruling to understand the thinking.

Filed Under: file sharing, liability
Companies: ifpi, vkontakte

Former Record Label Exec Ethan Kaplan: Duh, Of Course More File Sharing Leads To More Sales

from the your-product-isn't-diamonds-mined-from-a-secret-mythical-land dept

We recently posted an interesting study talking about how greater file sharing of leaked albums had a specific (if small) causal impact that resulted in higher sales. I thought it was an interesting area of research, though one where a lot more work needs to be done. Following that, however, there was an interesting exchange on Twitter, mainly by former Warner Music exec Ethan Kaplan, who didn't seem to think the concept was controversial at all -- and instead that it was obvious. As he stated:

Let me simplify this answer: YES IT LEADS TO MORE SALES. DEMAND = DEMAND W/ $$$$$$ IF PRODUCT GOOD.

He then expanded on that idea (edited slightly to de-Twitterize):

Simplified further: MUSIC BUSINESS (RECORDED): your product isn't diamonds mined from a secret mythical land.

And beyond broadband/napster/whatever, what hurt you the most is PEOPLE FIGURED THAT OUT. Cynicism caught up with you.

You can see the complete exchange on Storify (embedded below) as per Ethan's command. Ethan, as always, is a perceptive observer (and never afraid to share his opinions) of one of the key reasons why the recording (not music) industry has had so much difficulty over the past few years. The industry was focused on something that they pretended was scarce when it was not -- misunderstanding the supply curve. Add to that, the fact that they misunderstood how file sharing represented pent up demand, and they astoundingly got both sides of the supply-demand curve wrong. It's hard to build a successful business when you do that.

Of course, all of this makes me wonder how Ethan lasted in his role at Warner for as long as he did. It must feel good to be free... Though, I stand by my assertion from 2008, that if Warner had put Ethan in charge, that company would be doing a lot better today.

Filed Under: ethan kaplan, file sharing, leak
Companies: warner music

New Study Says Leaked Albums From Popular Artists Lead To More Sales

from the interesting-findings dept

TorrentFreak alerts us to an interesting new research paper from Robert Hammond, an assistant professor at North Carolina State University, looking at the direct impact on sales when albums are leaked early online. The study is pretty thorough in trying to separate other factors and isolate the actual causal impact. It's a bit of an extrapolation to claim that the study says "file sharing boosts music sales," as I don't think the paper actually goes that far. It seems to suggest, however, that for popular artists, having an album leaked appears to lead to a small, but significant, increase in sales. The impact is not seen for newer or less-well-known artists.

To put this result into context, consider the effect of leaking one month earlier on the sales of an album; that is, predict the effect of leaking one month earlier on the number of additional seeders per leecher, then predict the effect of these additional seeders on the number of additional downloads, then finally predict the effect of these additional downloads on the number of additional sales. This exercise predicts that an album that leaked one month earlier will receive 59.6 additional sales.

The report is interesting in that it uses a different, and perhaps much more revealing, data set. Hammond got the data from a popular private tracker that is well known for pre-release works. He claims, quite reasonably, that this means his results are much more useful than other studies that rely on proxies that may not be as accurate.

That said, the report notes that other that other sources of marketing seem to have a larger impact than file sharing. The study is interesting in that it at least challenges a few other reports that have argued that file sharing leads to fewer sales (and even a report that claims that the entirety of the decline in recorded music sales is due to file sharing). While Hammond mentions this particular study, by economist Stan Liebowitz (a vocal supporter of the entertainment industry's position on file sharing), he notes that the two were studying different things -- one macro and one micro. It's also worth noting that Hammond appears to have had Liebowitz review his study before publishing it (though who knows what he said about it).

I think the results here are interesting, but it still does seem like an area of research that needs a lot more focus, as I would bet there are many additional variables at work here, as we've discussed. We've seen that artists that do a good job connecting with their fans, and giving them a reason to buy, seem to see an increase in sales -- and that's independent of how the content is leaked or released (mostly, since you could argue that having the content available is one way of connecting).

Filed Under: file sharing, leak, robert hammond