January 16, 2004 10:29 AM
A second large diference.
p2p sharing is done by end users.
CD bootlegging in this respect is done as a business for a profit.
January 18, 2004 10:40 AM
I see that difference as being included in the distribution structural difference, but I should have written it out clearer. Worth exploring more anyway.
For one there is plenty of profit in P2P, the big two Kaazaa are Limewire both for profit companies, and the isps are making a killing off of broadband demand driven in part by file sharing.
The second thing to look at is capital outlay. The bootleggers are making a profit, but its not much. These are CDs that retail for $5. That cost needs to pay for the manufacturing, packaging and distribution. Because of the capital outlay involved in moving physical goods most links in the chain are taking profits. The structure of the manufacturing and distribution network itself is what's responsible for their being more profit in that system then in P2P.
January 18, 2004 11:15 AM