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| GNUTELLA USE RISES 288% AS MORPHEUS JOINS THE NETWORK |
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BELMONT, MA - March 4, 2002 - Use of the Gnutella network rose by nearly 300% over the weekend as Morpheus, the largest peer-to-peer (P2P) file sharing service, adopted the open-source file-sharing protocol, according to Redshift Research (http://www.redshiftresearch.com), a leading authority on peer-to-peer services.
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On average, 353,000 users were logged on to the Gnutella network during the weekend of March 2-3, up 288% from an average of 91,000 on Friday, March 1. The jump in usage followed the launch of a Morpheus Preview Edition gnutella-based client late on Friday. This move is a further boost for the Gnutella network, which had already seen growth from an average of only 19,000 simultaneous users in December.
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"Though the Gnutella network has long been the sleeping giant of file sharing," said Matt Bailey, President of Redshift Research, "recent technical improvements, and now its adoption by Morpheus, makes it a powerful alternative to other P2P networks and a major head-ache for content owners."
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Previous versions of Morpheus software were based on the FastTrack P2P architecture, a technology also used by competing file-sharing networks Kazaa and Grokster. On Tuesday, February 26 the underlying FastTrack technology was changed to prevent Morpheus users from connecting to each other or to other users on the FastTrack network.
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As a result, millions of Morpheus users must download and install new software to regain their file-sharing capabilities. This disruption will be welcomed by legitimate, fee-based music services such as Pressplay and MusicNet. A new report by Redshift Research, "The Economics Of Music Subscription Services," examines the outlook for the music subscription industry, including the problems created by the widespread availability of free music.
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"The rise of Gnutella is a further sign that pirated music will never go away," said Bailey. "Commercial music services must learn to live with, and compete against, free file-sharing networks."
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About Redshift Research
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Launched in 2002, Redshift Research provides in-depth research and analysis for the distributed computing and digital entertainment industries. The company's services include research, strategic consulting, litigation support and the analysis and valuation of new market opportunities. Redshift Research was founded by Matt Bailey, a respected digital media analyst and former member of Webnoize Research.
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