Add to that the demise of some P2P file-sharing networks (see below), and things start to look a lot rosier for the likes of iTunes. However, MSN seems to think it is late to the party, breaking off talks with music's Big Four.
Of the two pure-play stocks, Warner and EMI, Warner gained 28% since a low on July 7.
Chronology of P2P file-sharing networks:
- Grokster was found liable for damages by an American judge (June 27).
- An Australian judge ordered Kazaa to go legal (September 5).
- The RIAA orders P2P networks to 'cease and desist' (September 16).
- WinMX closes (September 22).
- BitTorrent, among the largest networks, attracts $8.75m in venture capital (September 27).
- Limewire goes legal by changing its technology (September 27).
- eDonkey-owner MetaMachine quits this P2P technology (September 30).
- Related news from the movie industry: the MPAA forms MovieLabs to fight piracy through technology (September 19).