"When consumers find the files they are looking for, they share files with friends through P2P, personal blog posts, adding the files to their social networking pages, or send them via e-mail, text or IM," Mr. Cooper added. "If advertisers sponsor that content, their programs can reach consumers across multiple Internet channels from one source."
The idea that music can be free, even if supported by ads, is met by controversy. Prince recently was criticized for giving away copies of his newest CD in copies of the UK Mail on Sunday, although he was paid by The Mail for the copies.
Companies like
Allen Klepfisz of Qtrax points out that an ad-supported model reflects current consumer behavior. "If you have a whole generation that believes it's their birthright to have free music, you need to monetize it," he said. "There are now about three billion transactions a month in P2P, mostly illegal. The closest your business model is to current consumer behavior, the better its chance of success."
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