The de-Napsterisation of online video

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ANALYSIS

It was a heavy-metal drummer who provided the defining moment for the original Napster and peer-to-peer music networks.

In May 2000, Lars Ulrich, the bombastic drummer for the band Metallica, personally delivered a list of 335,000 screen names of people suspected of music piracy to Napster's Silicon Valley office. With that giant stack of names came the beginning of the end for freewheeling music exchange services.

Fast-forward six years. The new threat in Internet-enabled copyright infringement is centring on video. YouTube, the most popular of the video-sharing sites, has recently been asked to pull three videos — two skits from NBC Universal's Saturday Night Live and an American Airlines training bit — from its site owing to possible copyright violations.

But what's going on with YouTube, which promptly yanked the videos when NBC contacted it, pales in comparison to the growing legal concerns about video peer-to-peer networks. Increasingly, it's looking like movie and television producers are heading toward their own file-sharing showdown.

"I think there is a fast and loose game being played by many people who are aggregating video online and selling advertising on their Web sites. And I think that there will be a day of reckoning," says Steven Starr, chief executive of Revver, a site that lets people distribute their videos and make money off ads when people watch them. "I don't believe you can build a sustainable business on copyright infringement."

So far this year, more than 50 people in the US have been sued for allegedly swapping copyright movies online using peer-to-peer networks, according to the Motion Picture Association of America. Last month, the MPAA sued five sites that allow users to search for allegedly pirated files. It also sued file-swapping software provider eDonkey and several newsgroups, and shut down the Razorback2 file-swapping site network in Switzerland.

The spate of suits raises troubling questions for TV and movie producers, who, as more and more consumers buy the Net pipes necessary to bring in and send out video files, are reaching a crossroads their counterparts in music hit six years ago. About 67 percent of Americans who access the Internet at home now do so with a broadband connection, according to Nielsen/NetRatings. That's up from 31 percent five years ago.

Couple that with the popularity of TiVo digital video recorders and even software for recording video on the PC, as well as easy-to-rip DVDs, and the technology is there for a vast amount of video piracy. That doesn't mean The Lord of the Rings trilogy will start flipping around the Net like Metallica's Unforgiven did six years ago. But it does mean that short clips such as funny SNL skits or favourite moments from The Simpsons are ripe for the picking.

Like Napster, services such as eDonkey and BitTorrent provide technology that allows users to find for and download files over a peer-to-peer network. With newsgroups, also called Usenet, the files uploaded are stored in pieces on the Usenet servers around the world and not on individual computer users' hard drives, as they are with peer-to-peer.

The services are having a big impact on the Net. More than 60 percent of Internet traffic is being taken up by peer-to-peer swaps, and about 60 percent of those swaps involve video content, according to recent data from network infrastructure company CacheLogic. Though it's difficult to estimate...

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