What if I told you that you could get all the music, movies, books, and software you want for free? Well, the good news is that nowadays you can quite easily. The bad news is that it's illegal. File sharing is nothing new as far as the Internet is concerned, but over the years the attempts to mitigate it has paled in comparison to its proliferation. Although the term file sharing more generally refers to any context it implies, its usage today almost always refers to pirated content, or at the very least the services that primarily serve such content.
In the early days of content piracy file sharing websites would host files for download. Music was by far the most common type of content pirated then, taking off with the introduction of Napster. Software piracy was also quite widespread through various warez sites, but was not as widespread as music. The problem with file sharing sites, however, was that the content was all centralized in one or a few locations so taking down the sites could easily mitigate the piracy taking place. This ultimately led to the demise of Napster, but not before a new and significantly more resilient framework had already taken hold. Why host the files and tax your bandwidth when you could just as easily pass this on to the users? With this realization, peer-to-peer file sharing was born.
Unlike hosted content, peer-to-peer file sharing serves the content to those who want it from those who already have it. The users simply downloaded a client that handled this all for them and were free to download anything that was available from the other users. Early on clients like Kazaa and Limewire were quite popular, but ultimately faded as newer clients were developed. The critical turning point in this was Torrents, though. While the earlier clients relied on their own servers to coordinate the sharing and search functionality—once again a point of weakness in the system—torrents were a more general framework involving files that contained metadata about the files to download and the servers that were hosting them. This spread the server load across multiple networks and countries making taking them down more difficult as this would have to be done for each network individually. The torrent files themselves were available from multiple sites, gaining the same benefit. Some sites required signing up and often imposed restrictions for doing so to prevent those looking to take down the networks from being to do so as easily. Even multiple clients using the same framework became available eventually. This level of dispersal made taking down the framework next to impossible by those seeking to protect their content that was being pirated.
The various industries affected by file sharing continue to evolve as a result. Some of the most popular sites for downloading torrents such as The Pirate Bay have been constantly targeted with little to no effect as far as the users are concerned. Many industries have looked into or implemented increased security measures to try to combat piracy. Software has implemented activation requirements that track the number of copies a particular serial number has being used at a particular time, but this has done little to help since those pirating software tend to be more computer savvy and thus cracks that patch the software in such a way as to remove this security functionality are quite common. Electronic books attempted to add encryption to control the number of copies and redistribution. This also has been mostly in vain as all encryption schemes to date have been broken and the cost of developing them far outweighs the cost of publishing the book in the first place.
The music industry has by far been affected most by piracy and has gone through the most change as a result. This has a lot to do with it being the most popular type of content to pirate, but also through many unrelated changes and flaws in the business model itself. Music piracy is nothing new, dating back to the days of people copying cassette tapes. The industry itself has for a long time seemed inherently flawed, however, which in part aided the piracy movement. With the introduction of CDs, the music industry underwent a major shift in its pricing practices. Costing next to nothing to make, the industry marked up the price to exorbitant amounts expecting that people would just pay for the higher quality, and for a time they did.
The evolution of the Internet and introduction of file sharing worked to shatter this model, however. After years of price-gouging a large number of people felt little remorse pirating music and the knowledge of just how little of the music prices actually went to the artists—the people they actually did care about—did little to counteract this trend. One could easily support the artist by going to shows and buying merchandise without lining the pockets of the record industry. All the while this trend escalated the price of producing music dropped significantly through advances in technology, making the overpricing practices even more of an insult to music listeners.
These factors played a key role in shaping the music industry and its business model. Realizing that people would no longer pay for overpriced CDs and that the popularity of mp3s was starting to exceed that of physical media the music industry started selling digital copies of music at more reasonable prices and even on a song-per-song basis. How many CDs have you bought where you only liked one or two of the songs anyway? The drop in the price of recording has also been a hit to the record labels while at the same time benefiting music as a whole significantly. Small bands could now record their own studio-quality albums on their own instead of relying on labels. They could even distribute albums themselves through the same digital media outlets as the labels, such as iTunes and Amazon, or even press their own CDs since this cost has always been very low anyway.
The industries affected by piracy have had to adapt to survive, but it could easily be argued that any setbacks arose from flaws in the traditional business models to begin with or the inability to adapt quick enough and in a reasonable manner to a fast-changing world. The distribution of legal content has likewise been affected, in this case very positively as file sharing frameworks such as torrents provide a great framework for the mass distribution of content regardless of the legality of it. Open source software and content can easily be distributed through peer-to-peer file sharing without burdening the already struggling producers of it with the costs of hosting the content themselves. Regardless of one's standpoint on piracy, file sharing has certainly had a huge impact on many industries and how content is acquired. There is no question that it is here to stay and that embracing and adapting to it it is by far the best way to react to this change.