Starbucks Strategy

TASK-1

The Internet is the hot topic these days and use of music on the web presents new issues

to owners, users, and lawyers. Music is being most popular via internet. Internet plays a

important role in popularity of music. Music on the Internet involves the same two important

copyrights that affect most other commercial users of music: performing rights and

recording (or mechanical) rights. However, they are applied differently. Performance and recordings overlap when it comes to the Internet, especially in the area of streaming or web casting. “On demand” streaming means the listener can select what to listen to and when to hear or view it after it is recorded. This differs from streaming that is not on demand, which most often occurs via web radio. Streaming is further divided into events, which are available “live” or “live live.” While “live” is usually a live concert recorded for later transmittal, “live live” refers to an Internet broadcast of an event while it is taking place. Internet is most compulsory for music . But PIRACY -one of the black mark on music of internet. the role of music downloading on the current downturn in CD sales. We provide 2000-2001 cross-country evidence in support of the claim of losses due to internet piracy made by the music industry. For the U.S. we also assess the potential loss from internet piracy using detailed survey data. We conclude the empirical analysis by forecasting CD sales for 2002. The results suggest that internet piracy played a

significant role in the decline in CD sales in 2001.Many voices in the music industry have claimed that internet piracy has reduced sales of legitimate CDs and that illegal MP3 downloads have become a substitute to legal CD purchases.1 Indeed, many analysts believe that the current downturn in CDs sales is due to the increasing and uncontrollable number of illegal copies available using peer-to-peer (P2P) technologies. End-user piracy, which is different from for-profit piracy, seems to be much more difficult to control. The industry and policy makers have addressed this issue by reinforcing copyright