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EBay and Napster

by Films for the Humanities (Firm)

Discusses two examples of successful and innovative online businesses. Describes the Internet auction house eBay, which generates a healthy profit as middleman for numerous transactions, but also has to deal with new twists on old problems, such as fraud and shill bidding (where sellers place bids on their own items to drive up bidding). Also examines the controversial rise of Napster and other sites which enable users to exchange MP3 music files for free. Presents the views of the music industry and some musicians that Napster is depriving them of legitimate compensation for their work. Reviews arguments that Napster provides a way for new music groups to gain exposure.