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One reason is that the digital medium eliminates acquisition cost for the consumer. A perfect copy of the original good is automatically created upon request. Using open platforms and formats, new companies in the entertainment sector have literally bypassed traditional production and distribution channels to reach the consumer. Napster is the perfect example of this new paradigm, turning every member’s computer into an audio server and distributing an individualized playlist. However, this trend seriously limits a content owner’s ability to restrict the supply of his/her intellectual property on a large scale and thus control it...
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