Is the party over? Innovation and music on the web

This paper examines the current position of copyright for the music industry in the light of innovation and diffusion of technologies which enable audio file sharing amongst web users. We note that there currently appears to be conflicting assessments between the major corporations and the many small firms in Europe with regard to the business potential for online music. In particular, we show that the convergence of technologies together with the emergence of particular practices of ‘net culture’ have posed a number of marketing opportunities and threats for industry incumbents. The role of the Napster program, as well as subsequent innovations in peer‐to‐peer software, is examined together with the responses that have been made by different sections of industry.