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| rdfs:comment | - The Open Music Model is an economic and technological framework for the recording industry proposed in 2003, which suggests that the only viable system for distributing music online is through a DRM-free peer-to-peer file sharing system. It is based on earlier research conducted at the Massachusetts Institute of Technology. The model proposed five necessary and sufficient fundamental requirements for a viable commercial peer-to-peer music distribution network: Criticisms of the model include that it does not address the issue of piracy.
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| abstract | - The Open Music Model is an economic and technological framework for the recording industry proposed in 2003, which suggests that the only viable system for distributing music online is through a DRM-free peer-to-peer file sharing system. It is based on earlier research conducted at the Massachusetts Institute of Technology. The model proposed five necessary and sufficient fundamental requirements for a viable commercial peer-to-peer music distribution network: 1.
* Open File Sharing: users must be free to share files on their hard drives with each other 2.
* Open File Formats: content must be distributed in MP3 and other formats with no DRM restrictions 3.
* Open Membership: copyright holders must be able to freely register to receive payment 4.
* Open Payment: users must be able to access the system using either credit cards or access cards purchasable anonymously in cash from retail stores. 5.
* Open Competition: there must be multiple such systems which can tie into each other’s file sharing databases. It must not be a monopoly through legal design It was the first model to argue for a $5 per month all-you-can-download subscription fee, a pricing model later introduced by Yahoo! Music in 2005. The research behind the model showed that $5 per month was the optimal price point to maximize user participation as well as revenue. Criticisms of the model include that it does not address the issue of piracy.
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