How do companies and produces lose money when people are music sharing?

Question

i really help with this cuz i m doin a debating and i would love to the anwer by wesday

Answer 1

- lose money:

people don't buy the songs

people don't value the songs and regard them as free

- make money:

individual songs/bands are advertised (you can talk about how different bands are either giving away music or providing them on a pay what you like basis)

more people listen to music!!!

people get used to obtaining music online which open the path for digital distribution (itunes outsells walmart)

Answer 2

Everyone involved with the production of music gets paid through "licensing" fees. In effect, when you purchase a CD or MP3 online, you are purchasing a license to use and listen to that music.

When the music is distributed or "shared", the artists, producers, etc. lose income they would have gotten if the music had been sold through legitimate means.

This assumes that the person receiving the "shared" music was going to buy the product if they didn't get it for free...which is a substantial assumption in some cases.

In many cases, it's not so much about money as it is control. Music shared outside the control of record companies and producers and artists might be altered or changed or might not have been recorded on quality formats.