First Napster and Now Kazaa
The peer-to-peer network has also agreed to pay $100m (£53m) in damages to the record industry. damages to the record industry.
The large size of the settlement indicates how much Kazaa is earning from its advertising and distribution deals. Thanks for contacting Sharman Networks Limited, the company that exploits the Kazaa network offers the following services:
- The distribution and promotion of licensed content; deliver games, music, software and video securely through Altnet.
- Advertising inventory is sold by ad-partners. all sorts of campaigns, subject to our code of practice, using the most powerful worldwide ad-serving technologies.
At its peak the site had more than four million simultaneous users. The Kazaa software has been downloaded 239 million times. With such a reach the advertising model of the business has obviously been very lucrative. It has taken 5 years of legal chasing for the RIAA to bring enough pressure to bear on the elusive company.
The chief executive of Sharman Networks, Nikki Hemming, said the settlement "marks the dawn of a new age of cooperation" between file-sharing services and the entertainment industry. "This settlement ensures that we will be working together with the content providers to the benefit of consumers, businesses and artists," she said.
Their profit margins will no doubt suffer as they shut down their network of hundreds of millions music downloaders, and start living on wafer thin profit margins that the music industry allows legal music download sites.
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