Is Music Sharing Profitable? Or Was David Galper Wrong?

One of the biggest questions amongst those employed by the music industry today is whether or not online music sharing is profitable or appropriate. Over the past decade or so, several websites have been created in order to allow users to upload and download music that they had obtained from other sources.

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Many of these sites were quickly shut down. The government ruled that those who had purchased albums did not have the legal right to share them with others who had not paid in a way that produced duplicate copies of the work (ie. downloading). Sites were destroyed, those sharing music were fined, and those looking for affordable alternatives quickly found themselves in a lurch.

The Ruckus Network

Enter David Galper and Vince Han, creators of the Ruckus Network. In the early 2000′s, the two partners collaborated to form a music sharing network that would allow college students to have free access to an online library of music. They contracted with universities around the country to give current students free access, while alumni and graduates received access for a low monthly charge.

Within a year, the network was sold and subsequently shut down – leaving users and music aficionados with two questions. Why did Ruckus fail and is music sharing really profitable?

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The Benefits of Music Sharing

While that first question may never have an answer, the answer to the second question has, over the past few years, become crystal clear. Music sharing can be very profitable for both site owners and artists – if handled properly.

Music sharing allows artists to increase exposure to their music, without forcing new listeners to buy entire albums they may not like and, subsequently, return. Even the free samples given out by some music sharing networks do lead to profit. Studies have shown that listeners who download free music are very likely to purchase the album put out by artists who have released sample tracks.

Music sharing increases the accessibility of music to listeners from around the world. The online music market suddenly grows from one country to anywhere where an artist can be appreciated. Because there are now so many different models for file sharing legally, the illegal methods are slowly going by the wayside. Music is now accessible to the masses – at a rate just about anyone can afford.

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David Galper had the right idea when he created the Ruckus Network. Perhaps it was ill-timed, and maybe it wasn’t as carefully cared for as it could have been, but one fact remains true. Online music sharing is one industry that may never die.

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