Question

Widespread use of the Internet caused disruption and quick evolution within the music industry. Responses to widespread Internet usage included technological evolutions, such as uniquely identifiable digitally tagged files, and the passage of laws that penalized file sharing.

Which type of e-commerce put music industry artists, publishers, and retailers at risk of losing potential revenue due to widespread use of the Internet?
a. Business to business
b. Peer to peer
c. Consumer to consumer
d. Business to consumer

Answer 1

The widespread use of the Internet through peer-to-peer (P2P) e-commerce caused the music industry to undergo significant revenue loss by enabling easy file sharing of music and videos.

Step-by-step explanation:

The type of e-commerce that put music industry artists, publishers, and retailers at risk of losing potential revenue due to widespread use of the Internet is peer to peer (P2P). This form of e-commerce facilitated the large-scale sharing of music files online, often without the permission of copyright holders, leading to significant reductions in traditional music sales. Notably, services like Napster pioneered the trend of music downloading and file sharing, fundamentally shifting how consumers accessed music and videos. The impact of this technological evolution was so profound that it forced a rethinking of the marketplace for recorded music and resulted in the rise of digital content and streaming services.