hether Napster and similar applications will mean reduced CD sales. Napster does challenge the traditional distribution of music (CDs, cassettes, vinyl etc) but whether this should be viewed as a threat or simply a new medium to be exploited by the music industry is another issue. Some record labels, most notably Epitaph (http://www.epitaph.com) have partnered with sites like e-music.com to sell full albums and single songs in MP3 format over the web. In this case, the record company has in fact gained a new distribution method, rather than seeing it as the 'enemy'. Of course, in this scenario, the record company still gets a cut of the profits, something that artists' whose songs are downloaded through Napster don't get. The fact that Napster is free and more convenient than visiting a record store makes it an appealing way to get music for consumers. The problem the record companies have is that there is no way of regulating who has access to the information, and hence no way of profiting from it. Napster also facilitates international distribution for unsigned artists. This also threatens record labels. Previously, without being signed to a record label, an artist simply could not get the exposure to make a living as a musician. With the Internet, sites like mp3.com and Napster, this is now possible. While Napster does allow music sharing to an extent that could theoretically destroy the retail music industry, stopping Napster will not stop all their problems. Record labels need to see this new technology not as a threat, but as a challenge. They need to come up with ideas to encourage people to buy CDs (multimedia components, attractive artwork, lyrics, picture books etc). Perhaps if they offered better services to their signed artists, fewer artists would want to release their music themselves. Napster challenges the music industry's monopoly on distribution. People can now download music for free in their own homes and artists can...
