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| KAZAA USE GROWS BY NEARLY 70% IN TWO MONTHS AS MORPHEUS FADES |
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BELMONT, MA - May 1, 2002 - The size of the Kazaa file-sharing network grew by nearly 70% between February and April, coinciding with a sharp decline in the competing Morpheus network, according to Redshift Research (http://www.redshiftresearch.com), a leading authority on peer-to-peer (P2P) services.
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The Kazaa network, owned by Australia-based Sharman Networks, had an average of 1.4 million users typically logged on to the system during April. This is a rise of 69% from February, when 830,000 users were normally using the network.
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While Kazaa has risen, the Morpheus system once the worlds largest P2P network has been in decline. In early March, Morpheus launched new software based on the Gnutella file-sharing protocol. In February, prior to the switch, Morpheus had an average of 1.08 million users. By April, the Gnutella network including Morpheus along with other Gnutella-based systems like Limewire and Bearshare typically had only 280,000 users.
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"The number of Morpheus users has fallen by more than 70%, leaving many P2P users looking for a new file-sharing system," said Matt Bailey, President of Redshift Research. "Kazaa has been a major beneficiary, and will continue to see growth in its user base in the coming weeks."
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But the Kazaa system remains highly controversial. As well as being the target of content-owner lawsuits in the US and abroad, Sharman Networks has drawn heavy criticism for the inclusion of a hidden file-sharing program in the Kazaa software. The code, dubbed Altnet, is the start of a new network designed to harvest the free bandwidth, storage space and microprocessor capacity of participating computers.
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The growth of Kazaa shows users continue to love P2P programs despite pop-up ads, spy-ware and now hidden software programs, said Bailey. There may come a time when users say enough is enough, but were not there yet.
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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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